Question 1

Codetermination has been used in Germany since the 1950s,but has not been used in the United States.

Accepted Answer

A) True 
 B)False

Question 2

Catalyst-level boards of directors typically

Accepted Answer

A)   are less involved than active participation boards.
B)   take leading roles in establishing and modifying the company mission, objectives, and strategy.
C)   are involved in a limited degree of key decision-making.
D)   are held to a greater degree of legal responsibility.
E)   experience more financial success than less involved boards.

Question 3

Which of the following is not a key characteristic of transformational executive leaders?

Accepted Answer

A)   The CEO presents a role for others to identify with and to follow.
B)   The CEO communicates high performance standards for all employees.
C)   The CEO demonstrates confidence in the employees' abilities to meet the expressed high standards.
D)   The CEO energizes the board to formulate strategy.
E)   The CEO articulates a strategic vision for the corporation.

Question 4

Which of the following statements is not true regarding the board of directors?

Accepted Answer

A)   The board is charged by law to act with due care.
B)   If a director or the board as a whole fails to act with due care and, as a result, the corporation is in some way harmed, the careless director or directors can be held personally liable for the harm done.
C)   Director liability insurance is often needed to attract people to become members of boards.
D)   Directors must be aware of the needs of various constituent groups to balance all their interests.
E)   More than half of all publicly traded companies in the United States are incorporated in New York, requiring that the corporation be managed in accordance with NY state laws.

Question 5

From the perspective of the public,the primary job of the board of directors is

Accepted Answer

A)   to lend credence to the decisions of the executive committee.
B)   dictated solely by legal requirements.
C)   to act as representatives for public identification.
D)   to closely monitor the actions of management.
E)   insulated from legal judgments because management actually makes the decisions.

Question 6

The role of the board of directors in reviewing,evaluating,and shaping corporate strategy is likely to be less active in the future.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not a trend in corporate governance expected to continue?

Accepted Answer

A)   Institutional investors are becoming active on boards.
B)   Boards are getting more involved in shaping company strategy.
C)   Boards are getting larger.
D)   Shareholders are demanding directors and top managers own more than token amounts of stock in the corporation.
E)   Outside directors are taking charge of annual CEO evaluations.

Question 8

The vast majority of inside directors are from all of the following EXCEPT

Accepted Answer

A)   lower-level operating employee.
B)   president of the corporation.
C)   vice-president of operational units.
D)   chief executive officer.
E)   vice-president of functional units.

Question 9

When calculating a "deserved pay" for CEOs based upon earnings growth and shareholder return,financial research firm Obermatt found that

Accepted Answer

A)   there is a negative correlation between CEO pay and company performance.
B)   there is a positive correlation between CEO pay and company performance.
C)   there is no correlation in the 100 S&P companies between CEO pay and company performance.
D)   CEO pay packages were rejected by 90% of shareholders.
E)   most compensation systems were aligned with the interests of shareholders.

Question 10

Board members who are not employed by the corporation,but handle the legal or insurance needs of the firm and are thus not true "outsiders," are what kind of directors?

Accepted Answer

A)   affiliated directors
B)   family directors
C)   retired directors
D)   management directors
E)   interlocked directors

Question 11

What are the responsibilities of top management?

Accepted Answer

Top management responsibilities involve ...

Question 12

Under what circumstances does an INDIRECT interlocking directorate exist?

Accepted Answer

A)   when both management and the board establish corporate strategic management
B)   when a corporation's employees are included on its board
C)   when one or more individuals on one board also serve on a board of a second firm
D)   when all board members are also employed by the corporation
E)   when two corporations have directors who serve on the board of a third firm

Question 13

What are the responsibilities of the board of directors?

Accepted Answer

The five board of directors' responsibil...

Question 14

By 2012,56% of the S&P 500 boards had split the role of chairperson and CEO.

Accepted Answer

A) True 
 B)False

Question 15

The average board member of a U.S.Fortune 500 firm serves on ________ board(s) .

Accepted Answer

A)   3
B)   6
C)   9
D)   12
E)   only 1

Question 16

Individuals such as Phil Knight at Nike and Steve Jobs at Apple who energized their companies and provided change and movement by providing a vision for that change are known as

Accepted Answer

A)   transformational leaders.
B)   strategic implementers.
C)   strategists.
D)   corporate governors.
E)   directors.

Question 17

The combined chairperson/CEO position is being increasingly criticized because of the potential for conflict of interest.

Accepted Answer

A) True 
 B)False

Question 18

Which country pioneered the use of worker participation on corporate boards?

Accepted Answer

A)   England
B)   France
C)   Sweden
D)   Japan
E)   Germany

Question 19

The term "corporate governance" refers to the relationship among the board of directors,top management,and the shareholders in determining the direction and performance of the corporation.

Accepted Answer

A) True 
 B)False

Question 20

According to the text,most publicly owned large corporations today tend to have boards with what degree of involvement in the strategic management process?

Accepted Answer

A)   passive to minimal
B)   minimal to nominal
C)   rubber stamp type
D)   nominal to active
E)   active to catalyst

Exam 2: Corporate Governance

What are the responsibilities of the board of directors?

Correct AnswerverifiedThe five board of directors' responsibil...View AnswerShow Answer

Which of the following is not a key characteristic of transformational executive leaders?

Correct AnswerverifiedShow Answer

From the perspective of the public,the primary job of the board of directors is

Correct AnswerverifiedShow Answer

What are the responsibilities of top management?

Correct AnswerverifiedTop management responsibilities involve ...View AnswerShow Answer

Under what circumstances does an INDIRECT interlocking directorate exist?

Correct AnswerverifiedShow Answer

When calculating a "deserved pay" for CEOs based upon earnings growth and shareholder return,financial research firm Obermatt found that

Correct AnswerverifiedShow Answer

According to the text,most publicly owned large corporations today tend to have boards with what degree of involvement in the strategic management process?

Correct AnswerverifiedShow Answer

Catalyst-level boards of directors typically

Correct AnswerverifiedShow Answer

The role of the board of directors in reviewing,evaluating,and shaping corporate strategy is likely to be less active in the future.

Correct AnswerverifiedShow Answer

Individuals such as Phil Knight at Nike and Steve Jobs at Apple who energized their companies and provided change and movement by providing a vision for that change are known as

Correct AnswerverifiedShow Answer

Which country pioneered the use of worker participation on corporate boards?

Correct AnswerverifiedShow Answer

The term "corporate governance" refers to the relationship among the board of directors,top management,and the shareholders in determining the direction and performance of the corporation.

Correct AnswerverifiedShow Answer

The average board member of a U.S.Fortune 500 firm serves on ________ board(s) .

Correct AnswerverifiedShow Answer

By 2012,56% of the S&P 500 boards had split the role of chairperson and CEO.

Correct AnswerverifiedShow Answer

The vast majority of inside directors are from all of the following EXCEPT

Correct AnswerverifiedShow Answer

Which of the following is not a trend in corporate governance expected to continue?

Correct AnswerverifiedShow Answer

The combined chairperson/CEO position is being increasingly criticized because of the potential for conflict of interest.

Correct AnswerverifiedShow Answer

Codetermination has been used in Germany since the 1950s,but has not been used in the United States.

Correct AnswerverifiedShow Answer

Which of the following statements is not true regarding the board of directors?

Correct AnswerverifiedShow Answer

Board members who are not employed by the corporation,but handle the legal or insurance needs of the firm and are thus not true "outsiders," are what kind of directors?

Correct AnswerverifiedShow Answer

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The five board of directors' responsibil...
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Top management responsibilities involve ...
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