FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 9: Strategic Control and Corporategovernance

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Multiple Choice

Review LaterAdd Note

Review Later

Boards of directors have responded to financial crises,corporate scandals,regulator obligations,and investor requests for structural changes.In looking at the 2011 Harvard Business Review study of the changes in configuration of boards since 1987,which change has been brought about by government legislation?

A) Percentage of boards that have an average age of 64 or older has increased.
B) Average pay for directors has increased.
C) Percentage of boards with 12 or fewer members has increased.
D) Percentage of the directors that are independent has increased.

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

CEO duality refers to a situation in which the _____________.

A) CEO formulates and implements strategies
B) CEO serves as both the CEO and the chair of the board of directors
C) CEO is responsible for acting as CEO and serving on the compensation committee
D) CEO is responsible for acting as CEO and Chief Operating Officer (COO)

Correct Answer

verified

Show Answer

Question 33

Essay

Review LaterAdd Note

Identify at least three external control mechanisms.Discuss the role played by each of these.

CalPERS,the California Public Employees Retirement System,manages over 240 billion dollars in assets.As an example of shared activism,they review all short- and long-term performance figures for each of the firms in which they invest and request changes in the governance structure of those firms,when they feel the firm is not responsive to their concerns.

Public companies are required by law to disclose information regarding executive compensation packages.

The primary participants in corporate governance,according to Monks and Minow,are the shareholders,board of directors,and employees.

Which of the following is NOT one of the characteristics of a contemporary control system?

Contemporary approaches to strategic control rely primarily on _____________.

Most successful organizations minimize the need for explicit rules,regulations,and other boundaries by _____________.

Individual rationality ______________ organizational rationality.

According to the Business Roundtable,representing the largest U.S.corporations,the most important quality of a good board of directors is that they do not get involved in critiquing company strategies.

What are the advantages and disadvantages associated with using contemporary approaches to strategic control?

One of the most critical roles of the board of directors is to create incentives that align the interests of the CEO and top executives with the interests of shareholders.

Shareholders rely on CEOs to adopt policies and strategies that maximize the value of their shares.To motivate CEOs to maximize the value of their companies,boards of directors can consider all of the following options except one.Which one is it?

Behavioral controls involve the ability to respond effectively to environmental change.

Expropriation of minority shareholders means that minority shareholders _____________.

Rule-based controls are appropriate in organizations,where most of the employees are unskilled.

Behavioral controls are aspects of strategic change that involve finding the appropriate ______________ and ______________ among the culture,rewards,and boundaries of the firm.

Top managers at ABC Company meet every Friday to review daily operational reports and year to date data.This is an example of _____________.

Continuous monitoring enhances the ability of the organization to respond with speed and flexibility.