Question 1

In the UK, management is accountable to directors and directors are accountable to

Accepted Answer

A)   stakeholders
B)   shareholders
C)   agents
D)   financiersE) A) and B)
F) C) and D)

Question 2

Which aspect of organizations are industrial sociologists primarily concerned about?

Accepted Answer

A)   class
B)   motivation
C)   gender
D)   powerE) A) and D)
F) All of the above

Question 3

In the 'triple bottom line', what is the third element?

Accepted Answer

A)   Global impact
B)   Corporate Social Responsibility
C)   Stakeholder impact
D)   Learning and innovationE) None of the above
F) C) and D)

Question 4

The Sarbanes-Oxley Act (2002)  came into being as a result of which corporate collapse?

Accepted Answer

A)   Barings Bank
B)   Parmalat
C)   Enron
D)   RoverE) B) and D)
F) All of the above

Question 5

What is the key difference between the agency model and the stakeholder model of corporate governance?

Accepted Answer

The agency model of corporate governance assumes that the main objective of the firm is to pursueprofit maximization and that shareholders should be given priority in the governance framework.A contrasting view comes from stakeholder theory which argues that firms affect a wider range ofstakeholders such as employees and local community - therefore, the governance framework shouldreflect this.

Question 6

Approaches to corporate governance around the world can be broadly categorized as the 'outsider/market exit' approach and the

Accepted Answer

A)   Control approach
B)   Agency approach
C)   Relational approach
D)   Insider/outsider approachE) None of the above
F) A) and C)

Question 7

How many directors are UK Public Limited Companies (established after 1929)  required to have?

Accepted Answer

A)   1
B)   2
C)   3
D)   4E) B) and D)
F) A) and B)

Question 8

Which approach to corporate governance emphasizes the impact of business on society?

Accepted Answer

A)   Multiple agency theory
B)   Agency theory
C)   Stakeholder theory
D)   Shareholder theoryE) None of the above
F) C) and D) C

Question 9

The phrase 'who manages the managers?' is known as

Accepted Answer

A)   The agency problem
B)   The shareholder problem
C)   The stakeholder problem
D)   The governance problemE) A) and B)
F) C) and D)

Question 10

Which of the following changes to corporate governance resulted in the possibility of criminal prosecution?

Accepted Answer

A)   The Greenbury Report
B)   The Sarbanes-Oxley Act
C)   The Hampel Committee
D)   The Cadbury ReportE) C) and D)
F) A) and B)

Question 11

Briefly outline the key principles of corporate governance.

Accepted Answer

Corporate governance defines the relatio...

Question 12

Who is who in the principal-agent model?

Accepted Answer

A)   The principal is the owner of the business and the agent is the manager of the business
B)   The principal is the manager of the business and the agent is the owner of the business
C)   The principal and the agent is the same person
D)   The principal is the director of the business and the agent is the manager of the businessE) A) and D)
F) None of the above

Question 13

In general, what are the two main strategic purposes of the Board?

Accepted Answer

A)   To define purpose and monitor performance
B)   To allocate resources and monitor performance
C)   To measure and reward
D)   To lead and controlE) A) and D)
F) All of the above

Question 14

In which country is the 'market for corporate control' the highest?

Accepted Answer

A)   UK
B)   Germany
C)   Japan
D)   SwedenE) A) and D)
F) A) and C)

Question 15

The 'outsider/market exit' approach to corporate governance is likened to which system of corporate governance?

Accepted Answer

A)   The Scandinavian system
B)   The Anglo-Saxon system
C)   The German system
D)   The Japanese systemE) A) and B)
F) All of the above

Question 16

On what bases should the Board of companies be judged?

Accepted Answer

Can be summarized from the work of a num...

Question 17

In which country are shareholder rights the highest?

Accepted Answer

A)   Japan
B)   Sweden
C)   UK
D)   GermanyE) C) and D)
F) B) and C)

Question 18

Which theory assumes that profit maximization is the firm's main objective?

Accepted Answer

A)   Principal theory
B)   Agency theory
C)   Stakeholder theory
D)   Shareholder theoryE) A) and D)
F) A) and C)

Question 19

Directors' remuneration was the focus of which review?

Accepted Answer

A)   The Greenbury Report
B)   The Cadbury Committee
C)   The Hampel Committee
D)   The Higgs ReportE) B) and C)
F) A) and B)

Question 20

Why is corporate governance in the UK conducted through the vehicle of regulation rather than through the vehicle of statute law?

Accepted Answer

Partly because legal enforcement is not seen as a desirable form of corporate governance andpartly because legislation is not sufficiently developed. In the USA the Sarbanes-Oxley Actmarked a departure from the spirit of self-regulation and it was not universally welcomed in USA

Exam 15: Strategy and Corporate Governance

In the UK, management is accountable to directors and directors are accountable to

Correct Answer
verified

Which aspect of organizations are industrial sociologists primarily concerned about?

Correct Answer
verified

In the 'triple bottom line', what is the third element?

Correct Answer
verified

The Sarbanes-Oxley Act (2002) came into being as a result of which corporate collapse?

Correct Answer
verified

What is the key difference between the agency model and the stakeholder model of corporate governance?

Approaches to corporate governance around the world can be broadly categorized as the 'outsider/market exit' approach and the

Correct Answer
verified

How many directors are UK Public Limited Companies (established after 1929) required to have?

Correct Answer
verified

Which approach to corporate governance emphasizes the impact of business on society?

Correct Answer
verified
C

The phrase 'who manages the managers?' is known as

Correct Answer
verified

Which of the following changes to corporate governance resulted in the possibility of criminal prosecution?

Correct Answer
verified

Briefly outline the key principles of corporate governance.

Correct Answer
verified
Corporate governance defines the relatio...
View Answer

Who is who in the principal-agent model?

Correct Answer
verified

In general, what are the two main strategic purposes of the Board?

Correct Answer
verified

In which country is the 'market for corporate control' the highest?

Correct Answer
verified

The 'outsider/market exit' approach to corporate governance is likened to which system of corporate governance?

Correct Answer
verified

On what bases should the Board of companies be judged?

Correct Answer
verified
Can be summarized from the work of a num...
View Answer

In which country are shareholder rights the highest?

Correct Answer
verified

Which theory assumes that profit maximization is the firm's main objective?

Correct Answer
verified

Directors' remuneration was the focus of which review?

Correct Answer
verified

Why is corporate governance in the UK conducted through the vehicle of regulation rather than through the vehicle of statute law?

Exam 15: Strategy and Corporate Governance

In the UK, management is accountable to directors and directors are accountable to

Correct AnswerverifiedShow Answer

Which aspect of organizations are industrial sociologists primarily concerned about?

Correct AnswerverifiedShow Answer

In the 'triple bottom line', what is the third element?

Correct AnswerverifiedShow Answer

The Sarbanes-Oxley Act (2002) came into being as a result of which corporate collapse?

Correct AnswerverifiedShow Answer

What is the key difference between the agency model and the stakeholder model of corporate governance?

Approaches to corporate governance around the world can be broadly categorized as the 'outsider/market exit' approach and the

Correct AnswerverifiedShow Answer

How many directors are UK Public Limited Companies (established after 1929) required to have?

Correct AnswerverifiedShow Answer

Which approach to corporate governance emphasizes the impact of business on society?

Correct AnswerverifiedC

The phrase 'who manages the managers?' is known as

Correct AnswerverifiedShow Answer

Which of the following changes to corporate governance resulted in the possibility of criminal prosecution?

Correct AnswerverifiedShow Answer

Briefly outline the key principles of corporate governance.

Correct AnswerverifiedCorporate governance defines the relatio...View AnswerShow Answer

Who is who in the principal-agent model?

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In general, what are the two main strategic purposes of the Board?

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In which country is the 'market for corporate control' the highest?

Correct AnswerverifiedShow Answer

The 'outsider/market exit' approach to corporate governance is likened to which system of corporate governance?

Correct AnswerverifiedShow Answer

On what bases should the Board of companies be judged?

Correct AnswerverifiedCan be summarized from the work of a num...View AnswerShow Answer

In which country are shareholder rights the highest?

Correct AnswerverifiedShow Answer

Which theory assumes that profit maximization is the firm's main objective?

Correct AnswerverifiedShow Answer

Directors' remuneration was the focus of which review?

Correct AnswerverifiedShow Answer

Why is corporate governance in the UK conducted through the vehicle of regulation rather than through the vehicle of statute law?

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C

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Corporate governance defines the relatio...
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Can be summarized from the work of a num...
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