Question 1

Which of the following statements about action plans is true?

Accepted Answer

A)  Action plans should permit a degree of autonomy to managers and not be constrained by budgets.
B)  Action plans must be specific so that managers will have a clear understanding of the resource requirements necessary to implement the plan.
C)  Action plans should not be constrained by a time frame in order to allow for modification.
D)  Management accountability often erodes their motivation to implement the plan on a timely basis.E) A) and B)
F) A) and C)

Question 2

Changes in board of director configurations since 1987 indicate that board directors were paid more in 2011, were older, were more often female, and were independent from the company (not insiders).

Accepted Answer

A) True 
 B)False

Question 3

The Sarbanes-Oxley Act of 2002 requires that CEOs and CFOs of publicly-listed companies must reveal off-balance-sheet finances and vouch for the accuracy of information provided.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not an example of how organizational culture exerts behavioral control?

Accepted Answer

A)  Culture helps maintain control by creating behavioral norms.
B)  Culture generates unwritten standards of acceptable behavior.
C)  Culture encourages individual identification with the organization and its objectives.
D)  Culture sets explicit boundaries.E) A) and D)
F) All of the above

Question 5

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

Accepted Answer

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.E) B) and C)
F) C) and D)

Question 6

In choosing sides concerning CEO duality, two schools of thought exist. Which of the following would not be a consideration for the Unity of Command school of thought?

Accepted Answer

A)  One person holding both roles will be able to act more efficiently and effectively.
B)  CEO duality provides smoother strategic decision making.
C)  CEO duality creates unit across the board of directors and managers of a company.
D)  CEO duality slows down decision-making.E) B) and D)
F) A) and D)

Question 7

Which of the following is not one of the characteristics of reward and incentive systems?

Accepted Answer

A)  They represent a poor means of influencing the culture of an organization.
B)  They focus efforts on high priority tasks.
C)  They motivate high levels of individual and collective task performance.
D)  They represent an effective control mechanism.E) A) and B)
F) B) and D)

Question 8

Tesco was forced to restate its earnings for the first half of 2014 to 431 million USD because senior managers in the UK food business had booked income early and delayed the booking of costs in order to improve appearances of financial performance. This scandal results from ____________ and __________.

Accepted Answer

A)  poor environment; management systems
B)  poor governance; control
C)  external environmental factors; internal environmental factors
D)  leadership; financial systemsE) A) and D)
F) C) and D)

Question 9

Agency theory is concerned with the problem that arises when it is difficult or inexpensive for the principal to verify what the agent is actually doing.

Accepted Answer

A) True 
 B)False

Question 10

The traditional approach to strategic control relies on feedback from performance measurement to formulate strategy.

Accepted Answer

A) True 
 B)False

Question 11

In choosing membership on the board of directors, consideration should be given to the size of the board as well as the individual member expertise and commitment to participate fully.

Accepted Answer

A) True 
 B)False

Question 12

Boundaries and constraints, when used properly, can minimize improper and unethical conduct.

Accepted Answer

A) True 
 B)False

Question 13

In principal-principal conflicts (conflicts between controlling shareholders and minority shareholders) , the ownership (of equity)  is

Accepted Answer

A)  widely dispersed.
B)  controlled almost completely by management.
C)  concentrated.
D)  often held by employee stock ownership programs.E) A) and D)
F) None of the above

Question 14

Contemporary strategic controls involve comparing actual performance to predetermined goals.

Accepted Answer

A) True 
 B)False

Question 15

The collective sum of individual behaviors of the employees of an organization generally results in what is best for the organization; thus, individual rationality assures organizational rationality.

Accepted Answer

A) True 
 B)False

Question 16

The reasons analyst recommendations are often more optimistic than warranted by an objective analysis of the facts include all of the following except that

Accepted Answer

A)  many analysts fail to grasp the gravity of the problems facing a company.
B)  sell recommendations generate lower commissions than buy recommendations.
C)  the firms for which analysts work may have lucrative investment banking relationships with the firm.
D)  analysts are often pressured by their superiors to overlook negative information.E) All of the above
F) C) and D)

Exam 9: Strategic Control and Corporate Governance

Which of the following is not one of the characteristics of reward and incentive systems?

Correct Answer
verified

Correct Answer
verified

The Sarbanes-Oxley Act of 2002 requires that CEOs and CFOs of publicly-listed companies must reveal off-balance-sheet finances and vouch for the accuracy of information provided.

Correct Answer
verified

Tesco was forced to restate its earnings for the first half of 2014 to 431 million USD because senior managers in the UK food business had booked income early and delayed the booking of costs in order to improve appearances of financial performance. This scandal results from __ and .

Correct Answer
verified

Boundaries and constraints, when used properly, can minimize improper and unethical conduct.

Correct Answer
verified

In choosing membership on the board of directors, consideration should be given to the size of the board as well as the individual member expertise and commitment to participate fully.

Correct Answer
verified

In principal-principal conflicts (conflicts between controlling shareholders and minority shareholders) , the ownership (of equity) is

Correct Answer
verified

Agency theory is concerned with the problem that arises when it is difficult or inexpensive for the principal to verify what the agent is actually doing.

Correct Answer
verified

Contemporary strategic controls involve comparing actual performance to predetermined goals.

Correct Answer
verified

Which of the following statements about action plans is true?

Correct Answer
verified

Changes in board of director configurations since 1987 indicate that board directors were paid more in 2011, were older, were more often female, and were independent from the company (not insiders).

Correct Answer
verified

Which of the following is not an example of how organizational culture exerts behavioral control?

Correct Answer
verified

The collective sum of individual behaviors of the employees of an organization generally results in what is best for the organization; thus, individual rationality assures organizational rationality.

Correct Answer
verified

The reasons analyst recommendations are often more optimistic than warranted by an objective analysis of the facts include all of the following except that

Correct Answer
verified

The traditional approach to strategic control relies on feedback from performance measurement to formulate strategy.

Correct Answer
verified

In choosing sides concerning CEO duality, two schools of thought exist. Which of the following would not be a consideration for the Unity of Command school of thought?

Correct Answer
verified

Exam 9: Strategic Control and Corporate Governance

Which of the following is not one of the characteristics of reward and incentive systems?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Sarbanes-Oxley Act of 2002 requires that CEOs and CFOs of publicly-listed companies must reveal off-balance-sheet finances and vouch for the accuracy of information provided.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Boundaries and constraints, when used properly, can minimize improper and unethical conduct.

Correct AnswerverifiedShow Answer

In choosing membership on the board of directors, consideration should be given to the size of the board as well as the individual member expertise and commitment to participate fully.

Correct AnswerverifiedShow Answer

In principal-principal conflicts (conflicts between controlling shareholders and minority shareholders) , the ownership (of equity) is

Correct AnswerverifiedShow Answer

Agency theory is concerned with the problem that arises when it is difficult or inexpensive for the principal to verify what the agent is actually doing.

Correct AnswerverifiedShow Answer

Contemporary strategic controls involve comparing actual performance to predetermined goals.

Correct AnswerverifiedShow Answer

Which of the following statements about action plans is true?

Correct AnswerverifiedShow Answer

Changes in board of director configurations since 1987 indicate that board directors were paid more in 2011, were older, were more often female, and were independent from the company (not insiders).

Correct AnswerverifiedShow Answer

Which of the following is not an example of how organizational culture exerts behavioral control?

Correct AnswerverifiedShow Answer

The collective sum of individual behaviors of the employees of an organization generally results in what is best for the organization; thus, individual rationality assures organizational rationality.

Correct AnswerverifiedShow Answer

The reasons analyst recommendations are often more optimistic than warranted by an objective analysis of the facts include all of the following except that

Correct AnswerverifiedShow Answer

The traditional approach to strategic control relies on feedback from performance measurement to formulate strategy.

Correct AnswerverifiedShow Answer

In choosing sides concerning CEO duality, two schools of thought exist. Which of the following would not be a consideration for the Unity of Command school of thought?

Correct AnswerverifiedShow Answer

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