BA 335 SOCIAL RESPONSIBILITY EXAM
CH 13 – 19 QUESTIONS WITH 100%
CORRECT ANSWERS { GRADED A+}
An argument that opposes the idea of high executive pay is:
High salaries provide an incentive for innovation and risk-taking.
Not many individuals are capable of running today's large, complex organizations.
Top athletes and entertainers make a lot of money, so top executives should, too.
High salaries divert resources that could be used to invest in the business. -
✔✔High salaries divert resources that could be used to invest in the business.
,An argument in support of high executive compensation is:
Multiple Choice
Inflated executive pay helps U.S. firms compete with foreign rivals.
High executive pay drives away talented middle managers who feel unfairly
compensated.
High salaries provide an incentive for innovation and risk-taking.
There is currently a surplus of qualified executive candidates. - ✔✔High salaries
provide an incentive for innovation and risk-taking.
A reason for institutions becoming more assertive in promoting the interests of
their member investors is:
,Multiple Choice
Expressing dissatisfaction with management performance by selling a large block
of stock would reduce the value of the institution's holdings.
Institutional investors are rarely able to influence management policy.
Institutions have greater flexibility in selling stocks than do individual investors.
Institutions have nominated members on the finance committee of the board of
directors.
Incorrect - ✔✔Expressing dissatisfaction with management performance by
selling a large block of stock would reduce the value of the institution's holdings.
How are directors (members of corporate boards) selected?
Multiple Choice
, Shareholders elect the directors from a list of candidates.
The company's CEO appoints the directors.
The nominating committee elects the directors.
Shareholders with the greatest proportional ownership in the company become
directors. - ✔✔Shareholders elect the directors from a list of candidates.
Institutional investors are best described by which statement?
rev: 11_14_2019_QC_CS-190501
Multiple Choice
Institutions invest their funds by purchasing shares of stock in corporations on
behalf of their investors or members.
CH 13 – 19 QUESTIONS WITH 100%
CORRECT ANSWERS { GRADED A+}
An argument that opposes the idea of high executive pay is:
High salaries provide an incentive for innovation and risk-taking.
Not many individuals are capable of running today's large, complex organizations.
Top athletes and entertainers make a lot of money, so top executives should, too.
High salaries divert resources that could be used to invest in the business. -
✔✔High salaries divert resources that could be used to invest in the business.
,An argument in support of high executive compensation is:
Multiple Choice
Inflated executive pay helps U.S. firms compete with foreign rivals.
High executive pay drives away talented middle managers who feel unfairly
compensated.
High salaries provide an incentive for innovation and risk-taking.
There is currently a surplus of qualified executive candidates. - ✔✔High salaries
provide an incentive for innovation and risk-taking.
A reason for institutions becoming more assertive in promoting the interests of
their member investors is:
,Multiple Choice
Expressing dissatisfaction with management performance by selling a large block
of stock would reduce the value of the institution's holdings.
Institutional investors are rarely able to influence management policy.
Institutions have greater flexibility in selling stocks than do individual investors.
Institutions have nominated members on the finance committee of the board of
directors.
Incorrect - ✔✔Expressing dissatisfaction with management performance by
selling a large block of stock would reduce the value of the institution's holdings.
How are directors (members of corporate boards) selected?
Multiple Choice
, Shareholders elect the directors from a list of candidates.
The company's CEO appoints the directors.
The nominating committee elects the directors.
Shareholders with the greatest proportional ownership in the company become
directors. - ✔✔Shareholders elect the directors from a list of candidates.
Institutional investors are best described by which statement?
rev: 11_14_2019_QC_CS-190501
Multiple Choice
Institutions invest their funds by purchasing shares of stock in corporations on
behalf of their investors or members.
