UPDATED ACTUAL Exam Questions and
CORRECT Answers
Select all that apply
Which statements correctly describe the ESG criteria? - CORRECT ANSWER -They
include environmental, social, and governmental aspects.
They evaluate firms on standards that go beyond financial results.
Drag each description to the correct ESG criteria dimension.
environmental
social
governance - CORRECT ANSWER -environmental: working to address climate change
and other sustainability goals
social: pursuing policies that promote diversity, equity, health and safety, human rights, and
inclusion
governance: Choice
addressing factors related to business ethics, legal compliance, transparency, shareholder
democracy, and board independence
What is shareholder capitalism? - CORRECT ANSWER -an economic system in which
the owners of shares in a public company are the company's legal owners and the providers of
risk capital
Narrowly defining public stock companies in terms of financial performance can lead to
Blank______. - CORRECT ANSWER -black swan events
, The firm's accounting metrics, ability to create shareholder value, and ability to generate
economic value tend to be Blank______. - CORRECT ANSWER -correlated
The economic system in which the owners of shares in a public company are the company's legal
owners and the providers of risk capital is called _____ _____. (2 words) - CORRECT
ANSWER -shareholder capitalism
Select all that apply
Which of the following correctly describe the information used for comparing the performance
of public companies based on accounting profitability? - CORRECT ANSWER -The
information is filed in a 10-K report.
The information is derived from such data as income statements and balance sheets.
The relative performance is evaluated using standardized financial metrics.
Many strategy scholars argue that the value of public stock companies is too narrowly defined in
terms of Blank______, leading to scandals and economic crises. - CORRECT ANSWER -
financial performance
The legal owners of publicly traded companies are called Blank______. - CORRECT
ANSWER -shareholders
Select all that apply
What are the three defining problems faced by capitalism today according to strategy scholar
Rebecca Henderson? - CORRECT ANSWER -climate change
economic inequality
beleaguered institutions
From the view of a shareholder, the measure of competitive advantage that matters most is return
on Blank______. - CORRECT ANSWER -risk capital