Filters
Question type
Study Flashcards

Lack of a clear understanding of organizational goals and objectives is a probable cause of


A) productive behavior.
B) counterproductive motivation.
C) counterproductive behavior.
D) motivated self-interest.

E) C) and D)
F) All of the above

Correct Answer

verifed

verified

Chesapeake Energy set a goal to improve workplace safety. To reinforce this, one year it gave out over 8 million USD in safety bonuses to over 6000 employees for following safe work practices. This served to create


A) happy employees because they got more free time.
B) an effective reward and incentive program because it reinforced commitment to goals.
C) a new mission statement for the company.
D) an effective incentive program because employees worked harder.

E) C) and D)
F) B) and D)

Correct Answer

verifed

verified

In addition to an annual base salary of 1.3 million USD and 10.4 million USD in stock compensation and bonuses, Heather Bresch, CEO of Mylan Pharmaceuticals, also received 6.4 millionUSDin other compensation in 2015. This included 19,200 USD for the use of a company-provided automobile and 310,000 USD in personal use of the company jet. Which of the following statements is true regarding this situation?


A) Shareholders favor diversification.
B) Executives favor diversification.
C) Top level managers always act in the shareholder interest.
D) Top level managers may pursue their own interests over that of the company.

E) All of the above
F) C) and D)

Correct Answer

verifed

verified

All the following are types of information that a firm is required to disclose except


A) quarterly and annual filings of financial information.
B) stock trading by insiders.
C) details of new products under development.
D) details of executive compensation packages.

E) A) and C)
F) B) and D)

Correct Answer

verifed

verified

In choosing sides concerning CEO duality, two schools of thought exist. Which of the following would not be a consideration for the agency theory school of thought?


A) CEO duality complicates the issue of CEO succession.
B) CEO duality reinforces popular doubts about the legitimacy of the system as a whole.
C) CEO duality can create conflicts of interest that can negatively affect the interests of the shareholders.
D) Firm performance typically improves under CEO duality.

E) B) and D)
F) All of the above

Correct Answer

verifed

verified

The primary participants in corporate governance, according to Monks and Minow, are the shareholders, board of directors, and employees.

A) True
B) False

Correct Answer

verifed

verified

Sales quotas, operating budgets, and production schedules are examples of traditional controls.

A) True
B) False

Correct Answer

verifed

verified

Zappos and Amazon focus on customer service. What purpose does this serve in terms of attaining behavioral control?


A) It uses culture to sustain their primary source of competitive advantage.
B) It uses rewards and incentives to sustain corporate culture.
C) It demonstrates to employees the importance of articulating explicit goals and objectives.
D) It gives management more control over employees.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Individual rationality ________ organizational rationality.


A) is a good indicator of
B) will ensure
C) is often the opposite of
D) does not always guarantee

E) All of the above
F) A) and D)

Correct Answer

verifed

verified

Rules and regulations are examples of ________ and ________.


A) controls; behaviors
B) controls; norms
C) boundaries; behaviors
D) boundaries; constraints

E) A) and B)
F) C) and D)

Correct Answer

verifed

verified

CEO duality refers to a situation in which the CEO


A) formulates and implements strategies.
B) serves as both the CEO and the chair of the board of directors.
C) is responsible for acting as CEO and serving on the compensation committee.
D) is responsible for acting as CEO and Chief Operating Officer (COO) .

E) B) and D)
F) A) and B)

Correct Answer

verifed

verified

The failure of many auditing firms to raise red flags about accounting irregularities in companies such as Enron and WorldCom is generally attributed to all the following factors except the


A) desire to get future auditing contracts from the company.
B) desire to get consulting work from the company because most audit firms also do consulting work.
C) fact that auditors are appointed by the firm.
D) failure of U.S. audit firms to hire technically qualified professionals.

E) A) and B)
F) All of the above

Correct Answer

verifed

verified

Informational control is primarily concerned with whether the organization is doing the right things.

A) True
B) False

Correct Answer

verifed

verified

The traditional approach to strategic control relies on feedback from performance measurement to formulate strategy.

A) True
B) False

Correct Answer

verifed

verified

In the contemporary approach to strategic control, adapting to and anticipating both internal and external environmental change is an integral part. The relationships between ________,________, and ________ are highly interactive.


A) change; leadership; control
B) strategy formulation; leadership; control
C) strategy formulation; implementation; control
D) strategic information; organizational behavior; implementation

E) B) and C)
F) None of the above

Correct Answer

verifed

verified

Behavioral controls are aspects of strategic change that involve finding the appropriate ________ and ________ among the culture, rewards, and boundaries of the firm.


A) balance; alignment
B) measure; balance
C) alignment; balance
D) measure; outcome

E) B) and D)
F) None of the above

Correct Answer

verifed

verified

The primary participants in corporate governance do notinclude the


A) shareholders.
B) financial institutions.
C) management (led by the chief executive officer) .
D) board of directors.

E) B) and C)
F) A) and D)

Correct Answer

verifed

verified

What is agency theory and what problems is it concerned with resolving?

Correct Answer

verifed

verified

Agency theory is a theory of the relatio...

View Answer

Which of the following approaches to behavioral strategic control would be the least appropriate for an organization in which there is a great need for innovation and a high degree ofautonomy?


A) culture
B) rewards
C) rules
D) incentives

E) A) and C)
F) A) and D)

Correct Answer

verifed

verified

Shareholders rely on CEOs to adopt policies and strategies that maximize the value of their shares. To motivate CEOs to maximize the value of their companies, boards of directors can consider all the following options except one. Which one is it?


A) Boards can require that the CEOs become substantial owners of company stock.
B) Salaries, bonuses, and stock options can be structures to provide rewards for superior performance.
C) Salaries can be structured to provide penalties for poor performance.
D) Dismissal for poor performance is not an option.

E) A) and C)
F) B) and C)

Correct Answer

verifed

verified

Showing 61 - 80 of 91

Related Exams

Exam 1

Strategic Management Creating Competitive Advantages

101 Questions

Exam 2

Analyzing the External Environment of the Firm Creating Competitive Advantages

109 Questions

Exam 3

Assessing the Internal Environment of the Firm

109 Questions

Exam 4

Recognizing a Firm's Intellectual Assets Moving beyond a Firm's Tangible Resources

112 Questions

Exam 5

Business-Level Strategy Creating and Sustaining Competitive Advantages

105 Questions

Exam 6

Corporate-Level Strategy Creating Value through Diversification

102 Questions

Exam 7

International Strategy Creating Value in Global Markets

107 Questions

Exam 8

Entrepreneurial Strategy and Competitive Dynamics

94 Questions

Exam 10

Creating Effective Organizational Designs

86 Questions

Exam 11

Strategic Leadership Creating a Learning Organization and an Ethical Organization

104 Questions

Exam 12

Managing Innovation and Fostering Corporate Entrepreneurship

93 Questions

Show Answer