Question 1

For the maximum benefit of each part, a corporation is a mechanism created to allow different parties to contribute all of the following except

Accepted Answer

A)  buildings.
B)  capital.
C)  expertise.
D)  labor.E) A) and D)
F) None of the above

Question 2

Single-loop learning, according to Chris Argyris, is most appropriate when the environment is ___________, goals and objective can be measured with a _________ of certainty, and there is ________ need for complex measures of performance.

Accepted Answer

A)  stable; high level; little
B)  unstable; low level; great
C)  stable; low level; great
D)  unstable; high level; littleE) All of the above
F) None of the above

Question 3

When subcultures emerge that have shared values opposite from the dominant culture of an organization

Accepted Answer

A)  organizational cohesiveness increases.
B)  information is shared rather than hoarded.
C)  individuals begin working at cross purposes.
D)  individuals gain insights into overarching goals and objectives.E) B) and D)
F) None of the above

Question 4

For firms competing in highly unstable and turbulent industries, traditional strategic controls are most appropriate.

Accepted Answer

A) True 
 B)False

Question 5

Stock analysts generally issue more sell recommendations than buy recommendations.

Accepted Answer

A) True 
 B)False

Question 6

All of the following are types of information that a firm is required to disclose except

Accepted Answer

A)  quarterly and annual filings of financial information.
B)  stock trading by insiders.
C)  details of new products under development.
D)  details of executive compensation packages.E) All of the above
F) C) and D)

Question 7

The late Sam Walton, founder of Walmart, used to give pep rallies at local Walmart stores. What purpose did this serve?

Accepted Answer

A)  It was used to remind employees of Walmart rules and regulations.
B)  It helped reinforce and sustain the Walmart culture.
C)  It demonstrated to employees the importance of articulating explicit goals and objectives.
D)  It made the Walmart reward system very explicit.E) A) and B)
F) A) and D)

Question 8

The three fundamental types of control are culture, rewards and leadership, boundaries and constraints.

Accepted Answer

A) True 
 B)False

Question 9

According to a 2011 Harvard Business Review study, women and minorities are overrepresented on boards of firms in the Standard and Poors 500 list.

Accepted Answer

A) True 
 B)False

Question 10

CEO duality refers to a situation in which the CEO

Accepted Answer

A)  formulates and implements strategies.
B)  serves as both the CEO and the chair of the board of directors.
C)  is responsible for acting as CEO and serving on the compensation committee.
D)  is responsible for acting as CEO and Chief Operating Officer (COO) .E) None of the above
F) A) and B)

Question 11

Auditors are appointed by the Securities and Exchange Commission to audit company financial statements.

Accepted Answer

A) True 
 B)False

Question 12

In emerging economies and continental Europe, firms often can be characterized by all of the following except

Accepted Answer

A)  concentrated ownership.
B)  low family ownership and control.
C)  business group structures.
D)  weak legal protection for minority shareholders.E) B) and C)
F) A) and C)

Question 13

Continuous monitoring is associated with many benefits including that changes in the competitive environment can be identified early, giving the organization better ability to respond accordingly.

Accepted Answer

A) True 
 B)False

Question 14

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.

Accepted Answer

A) True 
 B)False

Question 15

Reward systems need to be aligned clearly with the organizational goals and objectives, as demonstrated by Marks and Spencer and their sustainability efforts.

Accepted Answer

A) True 
 B)False

Question 16

Different functional areas within an organization often have different reward systems.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)  balance; alignment
B)  measure; balance
C)  alignment; balance
D)  measure; outcomeE) All of the above
F) C) and D)

Question 18

Sales quotas, operating budgets, and production schedules are examples of traditional controls.

Accepted Answer

A) True 
 B)False

Question 19

Sound governance practices always leads to superior financial performance.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following approaches to behavioral strategic control would be the least appropriate for an organization in which there is a great need for innovation and a high degree of autonomy?

Accepted Answer

A)  culture
B)  rewards
C)  rules
D)  incentivesE) A) and D)
F) B) and D)

Exam 9: Strategic Control and Corporate Governance

Single-loop learning, according to Chris Argyris, is most appropriate when the environment is ___________, goals and objective can be measured with a _________ of certainty, and there is ________ need for complex measures of performance.

Correct AnswerverifiedShow Answer

Different functional areas within an organization often have different reward systems.

Correct AnswerverifiedShow Answer

For the maximum benefit of each part, a corporation is a mechanism created to allow different parties to contribute all of the following except

Correct AnswerverifiedShow Answer

In emerging economies and continental Europe, firms often can be characterized by all of the following except

Correct AnswerverifiedShow Answer

CEO duality refers to a situation in which the CEO

Correct AnswerverifiedShow Answer

For firms competing in highly unstable and turbulent industries, traditional strategic controls are most appropriate.

Correct AnswerverifiedShow Answer

All of the following are types of information that a firm is required to disclose except

Correct AnswerverifiedShow Answer

The three fundamental types of control are culture, rewards and leadership, boundaries and constraints.

Correct AnswerverifiedShow Answer

Sales quotas, operating budgets, and production schedules are examples of traditional controls.

Correct AnswerverifiedShow Answer

When subcultures emerge that have shared values opposite from the dominant culture of an organization

Correct AnswerverifiedShow Answer

Sound governance practices always leads to superior financial performance.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Auditors are appointed by the Securities and Exchange Commission to audit company financial statements.

Correct AnswerverifiedShow Answer

According to a 2011 Harvard Business Review study, women and minorities are overrepresented on boards of firms in the Standard and Poors 500 list.

Correct AnswerverifiedShow Answer

The late Sam Walton, founder of Walmart, used to give pep rallies at local Walmart stores. What purpose did this serve?

Correct AnswerverifiedShow Answer

Which of the following approaches to behavioral strategic control would be the least appropriate for an organization in which there is a great need for innovation and a high degree of autonomy?

Correct AnswerverifiedShow Answer

Continuous monitoring is associated with many benefits including that changes in the competitive environment can be identified early, giving the organization better ability to respond accordingly.

Correct AnswerverifiedShow Answer

Reward systems need to be aligned clearly with the organizational goals and objectives, as demonstrated by Marks and Spencer and their sustainability efforts.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Stock analysts generally issue more sell recommendations than buy recommendations.

Correct AnswerverifiedShow Answer

Single-loop learning, according to Chris Argyris, is most appropriate when the environment is _______, goals and objective can be measured with a _ of certainty, and there is ____ need for complex measures of performance.

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

Correct Answer
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