SEVI 3013 Chapter 7 (final) with
Complete Solutions
Informational control and behavioral control are two central aspects of ______ control. -
ANS-strategic
Which of the following are part of the traditional approach sequence? (Check all that
apply.) - ANS-Strategies are formulated and goals are set by top management.
Performance is measured against the predetermined set of goals.
Strategies are implemented.
Which of the following statements are true about the traditional approach to strategic
control? (Check all that apply.) - ANS-It is often tied to an annual planning cycle.
It is based on a feedback loop comparing performance to a predetermined goal.
It is also referred to as "single-loop" learning.
The traditional approach is the most appropriate approach when ______. - ANS-the
objectives can be measured, goals are simple, and the environment is stable
The two types of strategic control in the contemporary approach are - ANS-informational
and behavioral
The two central aspects of strategic control are ______ control and ______ control -
ANS-informational; behavioral
The ______ approach to strategic control is sequential. - ANS-traditional
Which of the following statements regarding informational control are correct? (Check
all that apply.) - ANS-It deals with internal environment and the external strategic
context.
It considers assumptions that create the foundation for an organization's strategy.
It reviews goal and strategies in the context of the current environment.
In the traditional approach to strategic control, control is based on - ANS-comparing
actual performance to a predetermined goal
Which of the following are appropriate conditions for using the traditional approach to
strategic control? (Check all that apply.) - ANS-The environment is stable.
Goals and objectives can be measured with certainty.
The environment is relatively simple.
, The control process that continuously updates and challenges assumptions that
underlie the organization's strategy is ______ control. - ANS-informational
True or false: A corporation's board of directors has little control over the amount
bonuses and stock options that the corporation's CEO receives for his or her
performance. - ANS-False
Which of the following are attributes of an effective board of directors? (Check all that
apply.) - ANS-Directors are actively involved.
Directors provide strong oversight.
Directors rigorously evaluate senior managers, the company's strategic plan, and new
senior management hires.
The leadership structure in which the CEO acts as both the chief executive officer and
the chair of the board of directors is called CEO - ANS-duality
True or false: Unity-of-command advocates believe that a CEO can act more efficiently
and effectively when holding the positions both of CEO and chairman of the board. -
ANS-True
True or false: Research of boards of directors shows that simple restrictions, such as a
requirement that a majority of the board members be outside directors, is enough to
make the operations of the board effective. - ANS-False
The ______ theory perspective on CEO duality is based on the separation of power. -
ANS-agency
Which of the following is a way institutional investors engage in shareholder activism? -
ANS-They act aggressively to protect and enhance their investments.
Which of the following are external governance control mechanisms? (Check all that
apply.) - ANS-banks and analysts
market for corporate control
auditors
Which of the following are ways that a board of directors can incentivize managers to
make decisions that are in the company's shareholders' interest? (Check all that apply.)
- ANS-By requiring CEOs become substantial owners of company stock
Through structured salaries, bonuses, and stock options to provide rewards for superior
performance over a long-term horizon
By dismissing poor performing CEOs and other senior managers
Which of the following are examples of how managers can exhibit opportunistic
behavior? (Check all that apply.) - ANS-Shirking responsibilities
Taking on excessive product-market diversification through corporate acquisitions
Complete Solutions
Informational control and behavioral control are two central aspects of ______ control. -
ANS-strategic
Which of the following are part of the traditional approach sequence? (Check all that
apply.) - ANS-Strategies are formulated and goals are set by top management.
Performance is measured against the predetermined set of goals.
Strategies are implemented.
Which of the following statements are true about the traditional approach to strategic
control? (Check all that apply.) - ANS-It is often tied to an annual planning cycle.
It is based on a feedback loop comparing performance to a predetermined goal.
It is also referred to as "single-loop" learning.
The traditional approach is the most appropriate approach when ______. - ANS-the
objectives can be measured, goals are simple, and the environment is stable
The two types of strategic control in the contemporary approach are - ANS-informational
and behavioral
The two central aspects of strategic control are ______ control and ______ control -
ANS-informational; behavioral
The ______ approach to strategic control is sequential. - ANS-traditional
Which of the following statements regarding informational control are correct? (Check
all that apply.) - ANS-It deals with internal environment and the external strategic
context.
It considers assumptions that create the foundation for an organization's strategy.
It reviews goal and strategies in the context of the current environment.
In the traditional approach to strategic control, control is based on - ANS-comparing
actual performance to a predetermined goal
Which of the following are appropriate conditions for using the traditional approach to
strategic control? (Check all that apply.) - ANS-The environment is stable.
Goals and objectives can be measured with certainty.
The environment is relatively simple.
, The control process that continuously updates and challenges assumptions that
underlie the organization's strategy is ______ control. - ANS-informational
True or false: A corporation's board of directors has little control over the amount
bonuses and stock options that the corporation's CEO receives for his or her
performance. - ANS-False
Which of the following are attributes of an effective board of directors? (Check all that
apply.) - ANS-Directors are actively involved.
Directors provide strong oversight.
Directors rigorously evaluate senior managers, the company's strategic plan, and new
senior management hires.
The leadership structure in which the CEO acts as both the chief executive officer and
the chair of the board of directors is called CEO - ANS-duality
True or false: Unity-of-command advocates believe that a CEO can act more efficiently
and effectively when holding the positions both of CEO and chairman of the board. -
ANS-True
True or false: Research of boards of directors shows that simple restrictions, such as a
requirement that a majority of the board members be outside directors, is enough to
make the operations of the board effective. - ANS-False
The ______ theory perspective on CEO duality is based on the separation of power. -
ANS-agency
Which of the following is a way institutional investors engage in shareholder activism? -
ANS-They act aggressively to protect and enhance their investments.
Which of the following are external governance control mechanisms? (Check all that
apply.) - ANS-banks and analysts
market for corporate control
auditors
Which of the following are ways that a board of directors can incentivize managers to
make decisions that are in the company's shareholders' interest? (Check all that apply.)
- ANS-By requiring CEOs become substantial owners of company stock
Through structured salaries, bonuses, and stock options to provide rewards for superior
performance over a long-term horizon
By dismissing poor performing CEOs and other senior managers
Which of the following are examples of how managers can exhibit opportunistic
behavior? (Check all that apply.) - ANS-Shirking responsibilities
Taking on excessive product-market diversification through corporate acquisitions
