SEVI 3013 Exam 3 Review with
Questions and Answers
Build, Borrow, Buy - ANS-As a firm seeks to add vital resources and capabilities, what
strategic framework is used?
shareholders - ANS-In the United States, a firm's key stakeholder(s) is(are) the:
Financial Modeling - ANS-Which of the following is NOT one of the steps outlined in the
Playing to Win model?
A. Where to Play
B. How to Win
C. Resources Needed
D. Financial Modeling
penalties for inadequate firm performance. - ANS-Executive compensation is a
governance mechanism that seeks to align managers' and owners' interests through all
of the following EXCEPT:
A. bonuses.
B. long-term incentives such as stock options.
C. salary.
D. penalties for inadequate firm performance.
formal reporting relationships, procedures, controls, and authority and decision-making
processes. - ANS-Organizational structure specifies the firm's:
key individuals who are responsible for selecting and implementing a firm's strategy. -
ANS-The top management team is composed of the:
Structure affects the implementation of chosen strategies and also limits possible future
strategies. - ANS-How does structure affect strategy?
a method for resolving conflicts among corporate employees. - ANS-Corporate
governance is all of the following EXCEPT:
A. a set of mechanisms used to determine and control the strategic direction and
performance of organizations.
B. a means to establish and maintain harmony between owners and top managers
whose interests may conflict.
C. a way to ensure that top managers' interests are aligned with the interests of
stockholders.
, D. a method for resolving conflicts among corporate employees.
Employees self interest taking advantage of lack of rules/regulations - ANS-Which of the
following is NOT an advantage of a Simple Structure?
A. Centralized Decision Making
B. Highly Informal, few rules and regulations
C. Employees self interest taking advantage of lack of rules/regulations
D. Tasks coordinated by direct supervision
CEO - ANS-The primary responsibility for effective strategic leadership of the
organization rests with the:
The Board of Directors is the Principle and hires the CEO as their agent knowing that
he(she) will act in their own self interest - ANS-The Agency-Principle relationship, which
statement is true?
A. The Board of Directors is the Agent and hires the CEO as the principle leader
knowing that he(she) will act in their own self interest
B. The Board of Directors is the Agent and hires the CEO as the principle leader
knowing that he(she) will follow exactly the direction/wishes of the shareholders
C. The Board of Directors is the Principle and hires the CEO as their agent knowing that
he(she) will act in their own self interest
D. The Board of Directors is the Principle and hires the CEO as their agent knowing that
he(she) will follow exactly the direction/wishes of the shareholders
the situation where the CEO is also chairperson of the board of directors. - ANS-CEO
duality refers to:
Structure Follows Strategy - ANS-Generally speaking, discussions of the relationship
between strategy and structure imply that:
financial institutions, such as mutual funds and pension funds, that control large-block
shareholder positions. - ANS-Institutional owners are:
Making Choices - ANS-A key aspect in strategic decision making is:
It is easy to follow, incorporates multiple models and has demonstrated success - ANS-
A key benefit in using the Lafely/Marting "Playing to Win" framework for strategic
planning is...
The Glitch Report - ANS-In Martin's example in Playing to Win, he noted an example of
a management system that was established at Four Seasons as part of their ongoing
strategy. In this organization, it was referred to as:
Create a New Version of the Malibu to Be Better Than Toyota - ANS-In Martin's
Example of Playing to Win, he highlighted an example with General Motors in defining a
Questions and Answers
Build, Borrow, Buy - ANS-As a firm seeks to add vital resources and capabilities, what
strategic framework is used?
shareholders - ANS-In the United States, a firm's key stakeholder(s) is(are) the:
Financial Modeling - ANS-Which of the following is NOT one of the steps outlined in the
Playing to Win model?
A. Where to Play
B. How to Win
C. Resources Needed
D. Financial Modeling
penalties for inadequate firm performance. - ANS-Executive compensation is a
governance mechanism that seeks to align managers' and owners' interests through all
of the following EXCEPT:
A. bonuses.
B. long-term incentives such as stock options.
C. salary.
D. penalties for inadequate firm performance.
formal reporting relationships, procedures, controls, and authority and decision-making
processes. - ANS-Organizational structure specifies the firm's:
key individuals who are responsible for selecting and implementing a firm's strategy. -
ANS-The top management team is composed of the:
Structure affects the implementation of chosen strategies and also limits possible future
strategies. - ANS-How does structure affect strategy?
a method for resolving conflicts among corporate employees. - ANS-Corporate
governance is all of the following EXCEPT:
A. a set of mechanisms used to determine and control the strategic direction and
performance of organizations.
B. a means to establish and maintain harmony between owners and top managers
whose interests may conflict.
C. a way to ensure that top managers' interests are aligned with the interests of
stockholders.
, D. a method for resolving conflicts among corporate employees.
Employees self interest taking advantage of lack of rules/regulations - ANS-Which of the
following is NOT an advantage of a Simple Structure?
A. Centralized Decision Making
B. Highly Informal, few rules and regulations
C. Employees self interest taking advantage of lack of rules/regulations
D. Tasks coordinated by direct supervision
CEO - ANS-The primary responsibility for effective strategic leadership of the
organization rests with the:
The Board of Directors is the Principle and hires the CEO as their agent knowing that
he(she) will act in their own self interest - ANS-The Agency-Principle relationship, which
statement is true?
A. The Board of Directors is the Agent and hires the CEO as the principle leader
knowing that he(she) will act in their own self interest
B. The Board of Directors is the Agent and hires the CEO as the principle leader
knowing that he(she) will follow exactly the direction/wishes of the shareholders
C. The Board of Directors is the Principle and hires the CEO as their agent knowing that
he(she) will act in their own self interest
D. The Board of Directors is the Principle and hires the CEO as their agent knowing that
he(she) will follow exactly the direction/wishes of the shareholders
the situation where the CEO is also chairperson of the board of directors. - ANS-CEO
duality refers to:
Structure Follows Strategy - ANS-Generally speaking, discussions of the relationship
between strategy and structure imply that:
financial institutions, such as mutual funds and pension funds, that control large-block
shareholder positions. - ANS-Institutional owners are:
Making Choices - ANS-A key aspect in strategic decision making is:
It is easy to follow, incorporates multiple models and has demonstrated success - ANS-
A key benefit in using the Lafely/Marting "Playing to Win" framework for strategic
planning is...
The Glitch Report - ANS-In Martin's example in Playing to Win, he noted an example of
a management system that was established at Four Seasons as part of their ongoing
strategy. In this organization, it was referred to as:
Create a New Version of the Malibu to Be Better Than Toyota - ANS-In Martin's
Example of Playing to Win, he highlighted an example with General Motors in defining a
