BUSA 2106 TEST QUESTIONS AND ANSWERS A+
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"Corporate governance" is defined as ____________.
a)the formal system of oversight of, accountability for, and control over
organizational decisions and resources
b)the exercise of control and authority by those in mid-management positions
c)the philosophy that a board or CEO holds regarding accounting methods
d)the extent to which the content of workplace decisions is aligned with a firm's
stated strategic direction
a)the formal system of oversight of, accountability for, and control over organizational
decisions and resources
As fiduciaries, members of a company's Board of Directors are expected to
____________.
a)use both due care and loyalty in acting on behalf of the best interests of the
organization
b)reconcile differences in quality standards
c)resolve issues before they become reputation or legal risks
d)pay all criminal fines incurred by the business
a)use both due care and loyalty in acting on behalf of the best interests of the
organization
Which of the following best describes the stakeholder model of corporate
governance?
a)The managers have responsibilities to many stakeholders including employees,
suppliers, government agencies, communities, and groups with which it
interacts.
b)Managers' primary responsibility is to maximize the wealth of its most
important stakeholder, the owners.
c)Because corporations have many managers and resources, it is possible to
equally and fully address the needs of all stakeholders.
d)The primary focus of this model is social welfare, to the exclusion of economic
welfare.
a)The managers have responsibilities to many stakeholders including employees,
suppliers, government agencies, communities, and groups with which it interacts.
Which stakeholder is the primary focus of the shareholder model of corporate
governance?
a)employees
b)suppliers
c)investors
d)customers
c)investors
_______________ relates to a system of checks and balances that limit
employees' and managers' opportunities to depart from policies and codes of
conduct.
a)Accountability
, b)Efficiency
c)Control
d)Oversight
d)Oversight
Who are the principals and agents of a corporation?
a)Owners and employees, respectively
b)Employees and stockholders, respectively
c)Managers and employees, respectively
d)Stockholders and employees, respectively
b)Employees and stockholders, respectively
A _______________ gives a shareholder the right to buy or sell a stock at a set
price for a certain amount of time.
a)buyback
b)bailout
c)performance target
d)stock option
d)stock option
What is the primary concern of a Board of Directors today?
a)To watch out for the interests of the employees
b)To monitor the decisions made by managers on behalf of the company
c)To make decisions about how to run the day-to-day affairs of the business
d)To determine whether or not to pay dividends to stockholders
b)To monitor the decisions made by managers on behalf of the company
A shareholder is __________________.
a)a person who shares in the management of the business
b)anyone who purchases a company's stock
c)a person who shares in the legal responsibilities of the business
d)anyone who participates in the business
b)anyone who purchases a company's stock
Effective shareholder activism includes __________________.
a)alliances with social movements or public interest groups
b)making daily decisions within the company
c)defacing company property
d)awarding excessive compensation to executives
a)alliances with social movements or public interest groups
A(n) _______________ is an agent who is legally authorized to act on behalf of
another person/party.
a)proxy
b)investor
c)principal
d)auditor
a)proxy
A(n)_______________ is the key connection between risk and control and
corporate governance.
a)board independence
b)audit
GRADED. Buy Quality Materials!
"Corporate governance" is defined as ____________.
a)the formal system of oversight of, accountability for, and control over
organizational decisions and resources
b)the exercise of control and authority by those in mid-management positions
c)the philosophy that a board or CEO holds regarding accounting methods
d)the extent to which the content of workplace decisions is aligned with a firm's
stated strategic direction
a)the formal system of oversight of, accountability for, and control over organizational
decisions and resources
As fiduciaries, members of a company's Board of Directors are expected to
____________.
a)use both due care and loyalty in acting on behalf of the best interests of the
organization
b)reconcile differences in quality standards
c)resolve issues before they become reputation or legal risks
d)pay all criminal fines incurred by the business
a)use both due care and loyalty in acting on behalf of the best interests of the
organization
Which of the following best describes the stakeholder model of corporate
governance?
a)The managers have responsibilities to many stakeholders including employees,
suppliers, government agencies, communities, and groups with which it
interacts.
b)Managers' primary responsibility is to maximize the wealth of its most
important stakeholder, the owners.
c)Because corporations have many managers and resources, it is possible to
equally and fully address the needs of all stakeholders.
d)The primary focus of this model is social welfare, to the exclusion of economic
welfare.
a)The managers have responsibilities to many stakeholders including employees,
suppliers, government agencies, communities, and groups with which it interacts.
Which stakeholder is the primary focus of the shareholder model of corporate
governance?
a)employees
b)suppliers
c)investors
d)customers
c)investors
_______________ relates to a system of checks and balances that limit
employees' and managers' opportunities to depart from policies and codes of
conduct.
a)Accountability
, b)Efficiency
c)Control
d)Oversight
d)Oversight
Who are the principals and agents of a corporation?
a)Owners and employees, respectively
b)Employees and stockholders, respectively
c)Managers and employees, respectively
d)Stockholders and employees, respectively
b)Employees and stockholders, respectively
A _______________ gives a shareholder the right to buy or sell a stock at a set
price for a certain amount of time.
a)buyback
b)bailout
c)performance target
d)stock option
d)stock option
What is the primary concern of a Board of Directors today?
a)To watch out for the interests of the employees
b)To monitor the decisions made by managers on behalf of the company
c)To make decisions about how to run the day-to-day affairs of the business
d)To determine whether or not to pay dividends to stockholders
b)To monitor the decisions made by managers on behalf of the company
A shareholder is __________________.
a)a person who shares in the management of the business
b)anyone who purchases a company's stock
c)a person who shares in the legal responsibilities of the business
d)anyone who participates in the business
b)anyone who purchases a company's stock
Effective shareholder activism includes __________________.
a)alliances with social movements or public interest groups
b)making daily decisions within the company
c)defacing company property
d)awarding excessive compensation to executives
a)alliances with social movements or public interest groups
A(n) _______________ is an agent who is legally authorized to act on behalf of
another person/party.
a)proxy
b)investor
c)principal
d)auditor
a)proxy
A(n)_______________ is the key connection between risk and control and
corporate governance.
a)board independence
b)audit
