STRATEGIC MANAGEMENT CHAPTER
12 QUESTIONS WITH 100% CORRECT
ANSWERS { GRADED A+}
Svanhildur's company is committed to corporate social responsibility but also
understands that growth and profit are imperative for survival. What should
Svanhildur's company do to achieve this balance?
Multiple choice question.
It should adopt a functional corporate structure.
It should manipulate corporate-governance mechanisms.
It should apply agency theory.
It should use the shared value creation framework. - ✔✔It should use the shared
value creation framework.
Which type of company is considered a unicorn?
,Multiple choice question.
a private company that was once valued at over $100 million but has since lost
most or all of its value
a private start-up company valued at more than $1 billion
a public company whose share price exceeds $1,000
a public company valued at over $1 billion - ✔✔a private start-up company
valued at more than $1 billion
In regard to the public stock company, limited liability means that ______.
Multiple choice question.
the company does not have any responsible to earn a profit on invested capital
investors are not responsible for any debts incurred by the company and are only at
risk of losing the invested capital
the business cannot be held legally responsible for any damage or injury caused to
customers, the environment, or society at large
employees are free to pursue any initiative that interests them - ✔✔investors are
not responsible for any debts incurred by the company and are only at risk of
losing the invested capital
, Which of the following is a major drawback of public stock companies, according
to Michael Porter and others?
Multiple choice question.
They prioritize financial performance over all else.
They suffer too easily from inertia.
They focus too heavily on the greater good.
They get caught up in sustainability and overlook financial issues. - ✔✔They
prioritize financial performance over all else.
Social consequences of business activities, including pollution, energy loss, and
dangerous accidents, are known as ______.
Multiple choice question.
externalities
overruns
internal costs
output incidences - ✔✔externalities
12 QUESTIONS WITH 100% CORRECT
ANSWERS { GRADED A+}
Svanhildur's company is committed to corporate social responsibility but also
understands that growth and profit are imperative for survival. What should
Svanhildur's company do to achieve this balance?
Multiple choice question.
It should adopt a functional corporate structure.
It should manipulate corporate-governance mechanisms.
It should apply agency theory.
It should use the shared value creation framework. - ✔✔It should use the shared
value creation framework.
Which type of company is considered a unicorn?
,Multiple choice question.
a private company that was once valued at over $100 million but has since lost
most or all of its value
a private start-up company valued at more than $1 billion
a public company whose share price exceeds $1,000
a public company valued at over $1 billion - ✔✔a private start-up company
valued at more than $1 billion
In regard to the public stock company, limited liability means that ______.
Multiple choice question.
the company does not have any responsible to earn a profit on invested capital
investors are not responsible for any debts incurred by the company and are only at
risk of losing the invested capital
the business cannot be held legally responsible for any damage or injury caused to
customers, the environment, or society at large
employees are free to pursue any initiative that interests them - ✔✔investors are
not responsible for any debts incurred by the company and are only at risk of
losing the invested capital
, Which of the following is a major drawback of public stock companies, according
to Michael Porter and others?
Multiple choice question.
They prioritize financial performance over all else.
They suffer too easily from inertia.
They focus too heavily on the greater good.
They get caught up in sustainability and overlook financial issues. - ✔✔They
prioritize financial performance over all else.
Social consequences of business activities, including pollution, energy loss, and
dangerous accidents, are known as ______.
Multiple choice question.
externalities
overruns
internal costs
output incidences - ✔✔externalities
