Corporate Performance,governance,and Business Ethics

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Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage
External Analysis: The Identification of Opportunities and Threats
Internal Analysis: Distinctive Competencies,Competitive Advantage,and Profitability
Building Competitive Advantage Through Functional-Level Strategy
Building Competitive Advantage Through Business-Level Strategy
Business-Level Strategy and the Industry Environment
Strategy and Technology
Strategy in the Global Environment
Corporate-Level Strategy: Horizontal Integration,Vertical Integration,and Strategic Outsourcing
Corporate-Level Strategy: Related and Unrelated Diversification
Corporate Performance,Governance,and Business Ethics
Implementing Strategy in Companies That Compete in a Single Industry
Implementing Strategy in Companies That Compete Across Industries and Countries

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Question 1

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True/False

A union and the general public are examples of internal stakeholders.

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Question 2

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True/False

All stakeholders are in an exchange relationship with the company.

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Question 3

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True/False

If a company fails to take stakeholder claims into account,stakeholders may withdraw their support.

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Question 4

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True/False

Through stock ownership plans,stockholders receive employee benefits.

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Question 5

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True/False

Stockholders receive a return on their investment in a company's stock from dividend payments and capital appreciation.

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Question 6

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Attaining future profit growth may require investments that reduce the current rate of profitability.

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Question 7

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Maximizing long-run profitability and profit growth is the best way to satisfy the claims of several key stakeholder groups irrespective to how the company does so.

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Question 8

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Agency theory offers a way of understanding why managers do not always act in the best interests of stakeholders.

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Question 9

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In corporations,agency theory is used to explain the relationship between stockholders and corporate managers,and between upper-level managers and the lower-level managers they supervise.

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Question 10

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While many agency relationships work well,problems arise when agents and principals have different goals.

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Question 11

True/False

The term information asymmetry describes the difference in personal ethics that agents and principals have.

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Question 12

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One assumption of agency theory is that the principals have more information about the resources that are being managed than the agents do.

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Question 13

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Financial statements can be a tool of effective governance only if they provide consistent,detailed,and accurate information.

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Question 14

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Strategic control systems are the primary governance mechanisms established within a company to reduce the scope of the agency problem between levels of management.

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Question 15

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While they do a good job of increasing employee satisfaction,positive incentive systems do little to maximize long-run profitability.

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Question 16

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Ethical decisions are those that are made in accordance with accepted principles of right and wrong.

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Question 17

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Governance mechanisms help align the incentives between principals and agents and help monitor and control agents.

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Question 18

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Critics of corporate governance state that boards with more inside directors than outside directors are generally an effective governance mechanism because they know more about how the company works.

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Question 19

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An effective governance arrangement exists when the CEO is also the chair of the board of directors.

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Question 20

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Stock-based compensation schemes for senior executives are designed to align the interests of managers with those of stockholders.

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