Ch. 13- corporate governance
The processes and structures that provide the ultimate decision-making authority for the
firm is known as __________.
fiduciary duty
nexus of contracts
corporate governance
shareholder primacy - answer corporate governance
A(n) _________ is a legal structure for organizing where the organization is a distinct
and separate entity from its owners.
corporation
individual proprietorship
stakeholder model
partnership - answercorporation
Which of the following is the belief that a corporation should be run, primarily or
exclusively, for the benefit of its shareholders?
Fiduciary duty
Shareholder primacy
Nexus of contracts
Stakeholder model - answerShareholder primacy
The stakeholder model is a model of the corporation suggesting that the firm is the sum
total of its contracts with different stakeholders - answerfalse
In the corporation, shareholders are considered ___________.
employees
agents
, board of directors
principles - answerprinciples
Individuals or groups hired to administer the property or resources of principals are
called __________.
agents
principles
board of directors
shareholders - answeragents
An attempt by dissatisfied investors or stakeholders to gain seats on the board of
directors, or to influence corporate policy is called a __________.
tender offer
fiduciary duty
proxy fight
constituency law - answerproxy fight
Which of the following involves variable or contingent compensation that focuses
managers on key variables, designed to align their interests with the management
team?
Bonuses
Pay for performance
Stock-based compensation
Grants - answerPay for performance
Values that define for an individual, group, or society things that are morally right or
wrong are called _________.
principled values
ethical behaviors
The processes and structures that provide the ultimate decision-making authority for the
firm is known as __________.
fiduciary duty
nexus of contracts
corporate governance
shareholder primacy - answer corporate governance
A(n) _________ is a legal structure for organizing where the organization is a distinct
and separate entity from its owners.
corporation
individual proprietorship
stakeholder model
partnership - answercorporation
Which of the following is the belief that a corporation should be run, primarily or
exclusively, for the benefit of its shareholders?
Fiduciary duty
Shareholder primacy
Nexus of contracts
Stakeholder model - answerShareholder primacy
The stakeholder model is a model of the corporation suggesting that the firm is the sum
total of its contracts with different stakeholders - answerfalse
In the corporation, shareholders are considered ___________.
employees
agents
, board of directors
principles - answerprinciples
Individuals or groups hired to administer the property or resources of principals are
called __________.
agents
principles
board of directors
shareholders - answeragents
An attempt by dissatisfied investors or stakeholders to gain seats on the board of
directors, or to influence corporate policy is called a __________.
tender offer
fiduciary duty
proxy fight
constituency law - answerproxy fight
Which of the following involves variable or contingent compensation that focuses
managers on key variables, designed to align their interests with the management
team?
Bonuses
Pay for performance
Stock-based compensation
Grants - answerPay for performance
Values that define for an individual, group, or society things that are morally right or
wrong are called _________.
principled values
ethical behaviors
