Test Bank for Strategic Management
Which of the following is true concerning corporate governance? - answer Corporate governance
provides rules for making decisions on corporate affairs.
Corporate governance provides a structure for monitoring performance.
It seeks to benefit multiple stakeholders, not just shareholders.
Which of the following is NOT true concerning corporate governance? - answer Corporate governance is
present only in public organizations.
All of the following are roles played by the board of directors. - answer Transporting information from
external sources
Providing leads for acquisition candidates
Providing advice for the CEO and other executives
All of the following are roles played by the board of directors except ___________. - answer Creating the
firm's strategy
Which one of the following statements is in agreement with the approach espoused by Nobel laureate
Milton Friedman? - answer The only social responsibility of business is to increase its profits.
Which one of the following statements is true? - answer Corporate social responsibility helps firms gain
competitive advantage.
Which of the following best describes the leader's role of disseminator? - answer The executive passes
necessary information on to internal stakeholders.
,Which of the following is NOT true concerning the role of the board of directors? - answer They are
always independent.
Which of the following is true concerning the role of the board of directors? - answer They oversee the
firm's operations.
They may hire and fire top management.
They represent the shareholders' interests.
What best describes the separation of ownership and control? - answer Shareholders own stocks but do
not run the company
Loan officers persuading unsuspecting consumers to sign up for exotic mortgages which turned out to be
very expensive for the home buyers, is an example of what? - answer Actions that are legal but ethically
questionable.
Porter and Kramer offer a shared value framework for corporate social responsibility. Which of the
following is NOT one of the focal points they recommend in this framework? - answer Firms need to
focus new business in the BRIC nations.
Walmart spent $288 million for education and environment protection. This is an example of what type
of corporate social responsibility? - answer Philanthropic
What is a key component of a fully diverse organization? - answer Talent; different points of view
What is the Rivonia Trial? - answer Held in 1963 and led to activists such as Nelson Mandela being jailed
for almost 30 years.
One speaker believes it is unethical to not ask the tought questions that we don't want to ask. -
answer ...
,The risk of employee opportunism on behalf of agents is exacerbated by _______. - answer information
asymmetry
A firm's effective stakeholder management can ___________. - answer Induce information inflow
Reduce negative outcomes and risks
Build a strong reputation
Which of the following is NOT an essential component of the Sarbanes-Oxley Act? - answer
Shareholders' responsibility to ensure accounting integrity
The major theme of stakeholder theory is that _________. - answer The relationship among stakeholders
and the firm is a complex web and needs to be managed
The MBA Oath first developed at Harvard and now signed by students at over 500 business schools is
modeled after what? - answer The Hippocratic oath in medicine
Level-5 leadership - answer ...
Which one of the following statements is NOT true? - answer Increased trust among stakeholders will
increase the transaction cost.
Which one of the following statements is true? - answer Firms can build stronger reputation through
effective stakeholder management.
Satisfied stakeholders are more cooperative that can increase a firm's value creation.
Negative outcomes can be avoided if stakeholders are satisfied.
, Regarding the empirical evidence connecting corporate social responsibility and firm performance, the
text notes there have been a variety of studies performed to look at this question. Which ONE of the
following most accurately describes what has been found? - answer There is a positive relationship but
the causality is murky.
Which of the following is a disadvantage associated with stock options? - answer They may encourage
the CEO to falsely cook the company's financials.
Which of the following are advantages associated with stock options? - answer They motivate CEOs to
act like owners.
They encourage executives to create stock value.
They align incentives with shareholder interests.
An individual who acts on behalf of others is referred to as ______. - answer Agent
Two common features of the recent financial crisis are that management actions (1) affect the economic
well-being of the globe and (2) _____________. - answer Must consider a variety of stakeholders
Strategic Leadership video - answer Produced by Standford University, looks at a concept called efficient
leadership. Questions are related to leadership in environmental sustainability. Read pages 353-357 in
Strategic Management book.
Cradle to Cradle is a book - answer ...
Starbucks developed a sourcing policy to help source coffee of the highest quality while adhering to fair
trade and responsible growing practices. What type of responsibility does Starbucks have in this
example? - answer ethical
The task of managing an overall enterprise and influencing key organizational outcomes is referred to as
_______. - answer strategic leadership
Which of the following is true concerning corporate governance? - answer Corporate governance
provides rules for making decisions on corporate affairs.
Corporate governance provides a structure for monitoring performance.
It seeks to benefit multiple stakeholders, not just shareholders.
Which of the following is NOT true concerning corporate governance? - answer Corporate governance is
present only in public organizations.
All of the following are roles played by the board of directors. - answer Transporting information from
external sources
Providing leads for acquisition candidates
Providing advice for the CEO and other executives
All of the following are roles played by the board of directors except ___________. - answer Creating the
firm's strategy
Which one of the following statements is in agreement with the approach espoused by Nobel laureate
Milton Friedman? - answer The only social responsibility of business is to increase its profits.
Which one of the following statements is true? - answer Corporate social responsibility helps firms gain
competitive advantage.
Which of the following best describes the leader's role of disseminator? - answer The executive passes
necessary information on to internal stakeholders.
,Which of the following is NOT true concerning the role of the board of directors? - answer They are
always independent.
Which of the following is true concerning the role of the board of directors? - answer They oversee the
firm's operations.
They may hire and fire top management.
They represent the shareholders' interests.
What best describes the separation of ownership and control? - answer Shareholders own stocks but do
not run the company
Loan officers persuading unsuspecting consumers to sign up for exotic mortgages which turned out to be
very expensive for the home buyers, is an example of what? - answer Actions that are legal but ethically
questionable.
Porter and Kramer offer a shared value framework for corporate social responsibility. Which of the
following is NOT one of the focal points they recommend in this framework? - answer Firms need to
focus new business in the BRIC nations.
Walmart spent $288 million for education and environment protection. This is an example of what type
of corporate social responsibility? - answer Philanthropic
What is a key component of a fully diverse organization? - answer Talent; different points of view
What is the Rivonia Trial? - answer Held in 1963 and led to activists such as Nelson Mandela being jailed
for almost 30 years.
One speaker believes it is unethical to not ask the tought questions that we don't want to ask. -
answer ...
,The risk of employee opportunism on behalf of agents is exacerbated by _______. - answer information
asymmetry
A firm's effective stakeholder management can ___________. - answer Induce information inflow
Reduce negative outcomes and risks
Build a strong reputation
Which of the following is NOT an essential component of the Sarbanes-Oxley Act? - answer
Shareholders' responsibility to ensure accounting integrity
The major theme of stakeholder theory is that _________. - answer The relationship among stakeholders
and the firm is a complex web and needs to be managed
The MBA Oath first developed at Harvard and now signed by students at over 500 business schools is
modeled after what? - answer The Hippocratic oath in medicine
Level-5 leadership - answer ...
Which one of the following statements is NOT true? - answer Increased trust among stakeholders will
increase the transaction cost.
Which one of the following statements is true? - answer Firms can build stronger reputation through
effective stakeholder management.
Satisfied stakeholders are more cooperative that can increase a firm's value creation.
Negative outcomes can be avoided if stakeholders are satisfied.
, Regarding the empirical evidence connecting corporate social responsibility and firm performance, the
text notes there have been a variety of studies performed to look at this question. Which ONE of the
following most accurately describes what has been found? - answer There is a positive relationship but
the causality is murky.
Which of the following is a disadvantage associated with stock options? - answer They may encourage
the CEO to falsely cook the company's financials.
Which of the following are advantages associated with stock options? - answer They motivate CEOs to
act like owners.
They encourage executives to create stock value.
They align incentives with shareholder interests.
An individual who acts on behalf of others is referred to as ______. - answer Agent
Two common features of the recent financial crisis are that management actions (1) affect the economic
well-being of the globe and (2) _____________. - answer Must consider a variety of stakeholders
Strategic Leadership video - answer Produced by Standford University, looks at a concept called efficient
leadership. Questions are related to leadership in environmental sustainability. Read pages 353-357 in
Strategic Management book.
Cradle to Cradle is a book - answer ...
Starbucks developed a sourcing policy to help source coffee of the highest quality while adhering to fair
trade and responsible growing practices. What type of responsibility does Starbucks have in this
example? - answer ethical
The task of managing an overall enterprise and influencing key organizational outcomes is referred to as
_______. - answer strategic leadership
