Question 1

The MBA oath first developed at Harvard and now signed by students at over 300 business schools is modeled after

Accepted Answer

A)   Level-5 leadership.
B)   the Sarbanes-Oxley pledge.
C)   the Hippocratic oath in medicine.
D)   Goldman Sach's code.E) C) and D)
F) A) and B)

Question 2

Which of the following is a characteristic of a public stock company?

Accepted Answer

A)   Shareholders who provide risk capital are liable for all losses incurred by the company.
B)   Investor ownership cannot be transferred easily between investors.
C)   Legal personality allows a firm's continuation beyond the founder or the founder's family.
D)   In publicly traded companies, professional managers are the legal owners of the company.E) C) and D)
F) A) and D)

Question 3

Which of the following is true of the codes of conduct of an organization?

Accepted Answer

A)   They detail how the organization expects an employee to behave and to represent the company in business dealings.
B)   They are a reiteration of the laws pertaining to business dealings in a corporate environment.
C)   They are a guide to determine what is lawful and what is unlawful.
D)   They help the board of directors and the CEO implement shareholder capitalism.E) C) and D)
F) A) and C)

Question 4

In public stock companies,which of the following expectations of principals is most likely to lead to principal-agent problems?

Accepted Answer

A)   the expectation that the agent will follow the country's laws and regulations
B)   the expectation that the agent will go above and beyond the call of duty
C)   the expectation that the agent will reconnect economic and social needs
D)   the expectation that the agent will act in the principal's best interestE) A) and D)
F) B) and D)

Question 5

GLD Inc.is a publicly traded company.The stockholders of this company delegate the authority to make decisions for the company to a CEO named George.The stockholders expect George to make decisions that will benefit the company.However,George begins to find ways to maximize his total compensation,which at times hinders GLD's performance.This scenario reflects

Accepted Answer

A)   value creation problems.
B)   principal-agent problems.
C)   inside director-outside director problems.
D)   fiduciary responsibility problems.E) B) and C)
F) A) and D)

Question 6

_____ is a mechanism to direct and control an enterprise in order to ensure that it pursues its strategic goals successfully and legally.

Accepted Answer

A)   Corporate social responsibility
B)   Stakeholder impact analysis
C)   Corporate governance
D)   Shareholder capitalismE) C) and D)
F) B) and C)

Question 7

Which of the following is an important external corporate-governance mechanism?

Accepted Answer

A)   shareholder capitalism
B)   board of directors
C)   market for corporate control
D)   executive compensationE) B) and C)
F) All of the above

Question 8

What best describes transferability of investor ownership in a public stock company?

Accepted Answer

A)   Investors can give out company stocks as a gift.
B)   Investors are allowed to trade shares of stocks.
C)   Investors are allowed to participate in strategy formulation.
D)   Investors can be hired as employees.E) A) and C)
F) A) and B)

Question 9

Why does Michael Porter recommend expanding the customer base of an organization in terms of the shared value creation framework?

Accepted Answer

A)   Doing so could yield significant business opportunities that could improve the standard of living of the poor.
B)   Doing so is the best way to ensure that shareholders have the most legitimate claim on profits made by the organization.
C)   Doing so could be the only way to meet stockholder expectations in a highly competitive market.
D)   Doing so will help to prevent the inclusion of more nontraditional partners into internal firm value chains.E) A) and C)
F) A) and D)

Question 10

Travis,the CEO of Riplon Corp.,used company funds to buy a car worth $1 million and a house for $6 million in Santa Fe.This is an example of

Accepted Answer

A)   corporate governance.
B)   on-the-job consumption.
C)   adverse selection.
D)   shared value creation.E) A) and D)
F) None of the above

Exam 12: Corporate Governance and Business Ethics

The MBA oath first developed at Harvard and now signed by students at over 300 business schools is modeled after

Correct Answer
verified

What best describes transferability of investor ownership in a public stock company?

Correct Answer
verified

_____ is a mechanism to direct and control an enterprise in order to ensure that it pursues its strategic goals successfully and legally.

Correct Answer
verified

Which of the following is a characteristic of a public stock company?

Correct Answer
verified

Why does Michael Porter recommend expanding the customer base of an organization in terms of the shared value creation framework?

Correct Answer
verified

Travis,the CEO of Riplon Corp.,used company funds to buy a car worth $1 million and a house for $6 million in Santa Fe.This is an example of

Correct Answer
verified

Which of the following is true of the codes of conduct of an organization?

Correct Answer
verified

In public stock companies,which of the following expectations of principals is most likely to lead to principal-agent problems?

Correct Answer
verified

Which of the following is an important external corporate-governance mechanism?

Correct Answer
verified

Correct Answer
verified

Exam 12: Corporate Governance and Business Ethics

The MBA oath first developed at Harvard and now signed by students at over 300 business schools is modeled after

Correct AnswerverifiedShow Answer

What best describes transferability of investor ownership in a public stock company?

Correct AnswerverifiedShow Answer

_____ is a mechanism to direct and control an enterprise in order to ensure that it pursues its strategic goals successfully and legally.

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of a public stock company?

Correct AnswerverifiedShow Answer

Why does Michael Porter recommend expanding the customer base of an organization in terms of the shared value creation framework?

Correct AnswerverifiedShow Answer

Travis,the CEO of Riplon Corp.,used company funds to buy a car worth $1 million and a house for $6 million in Santa Fe.This is an example of

Correct AnswerverifiedShow Answer

Which of the following is true of the codes of conduct of an organization?

Correct AnswerverifiedShow Answer

In public stock companies,which of the following expectations of principals is most likely to lead to principal-agent problems?

Correct AnswerverifiedShow Answer

Which of the following is an important external corporate-governance mechanism?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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