Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not a characteristic of effective reward and incentive systems?

Accepted Answer

A)   Performance measures are clear and highly visible.
B)   The structure is fixed to assure employees of consistency.
C)   The compensation system is perceived as fair and equitable.
D)   Objectives are well understood, and broadly accepted.E) A) and D)
F) A) and C)

Question 4

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) None of the above
F) B) and C)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

According to research on a broad range of companies,boards of directors that have the skills and knowledge to advise CEOs on potential key strategic initiatives add risk more than value to the firm.

Accepted Answer

A) True 
 B)False

Question 7

For young managers who see themselves as free agents,behavioral controls such as rewards and culture can be an effective way to enhance organizational loyalty.

Accepted Answer

A) True 
 B)False

Question 8

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 C)
F) B) and C)

Question 9

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 10

The best way to minimize improper and unethical conduct is to ________ and _______.

Accepted Answer

A)   set boundaries; constraints
B)   establish standards; guidelines
C)   develop policies; regulations
D)   design sanctions; guidelinesE) All of the above
F) None of the above

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Lack of a clear understanding of organizational goals and objectives is a probable cause of

Accepted Answer

A)   productive behavior.
B)   counterproductive motivation.
C)   counterproductive behavior.
D)   motivated self-interest.E) B) and C)
F) B) and D)

Question 13

Informational control systems are concerned with which of the following?

Accepted Answer

A)   Is the organization doing things right?
B)   Is the organization doing the right things?
C)   Are rules and regulations being followed as information is processed?
D)   Is the environment of the organization a necessary and sufficient condition for success?E) None of the above
F) A) and B)

Question 14

Effective boundaries and constraints

Accepted Answer

A)   tend to inhibit efficiency and effectiveness.
B)   distract employees who are trying to focus on organizational priorities.
C)   minimize improper and unethical conduct.
D)   tend to limit organizational growth.E) A) and B)
F) All of the above

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

According to Studzinski,in a 2014 Fortune magazine article,competing activist investor pressures push company management to decide between bottom line profits or social and environmental benefits.The company can only choose one or the other.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)   behavioral control.
B)   informational control.
C)   strategy formulation.
D)   strategy implementation.E) A) and B)
F) B) and C)

Question 18

Double-loop learning in the contemporary approach to strategic control means that the organizational assumptions,premises,goals and strategies are occasionally monitored,tested,and reviewed.

Accepted Answer

A) True 
 B)False

Question 19

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 20

In single-loop learning,the assumptions,premises,goals,and strategies of the organization are continuously monitored,tested,and reviewed.

Accepted Answer

A) True 
 B)False

Exam 9: Strategic Control and Corporate Governance

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In single-loop learning,the assumptions,premises,goals,and strategies of the organization are continuously monitored,tested,and reviewed.

Correct AnswerverifiedShow Answer

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

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

Effective boundaries and constraints

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The best way to minimize improper and unethical conduct is to ________ and _______.

Correct AnswerverifiedShow Answer

Informational control systems are concerned with which of the following?

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

Lack of a clear understanding of organizational goals and objectives is a probable cause of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

For young managers who see themselves as free agents,behavioral controls such as rewards and culture can be an effective way to enhance organizational loyalty.

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of effective reward and incentive systems?

Correct AnswerverifiedShow Answer

Double-loop learning in the contemporary approach to strategic control means that the organizational assumptions,premises,goals and strategies are occasionally monitored,tested,and reviewed.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

According to research on a broad range of companies,boards of directors that have the skills and knowledge to advise CEOs on potential key strategic initiatives add risk more than value to the firm.

Correct AnswerverifiedShow Answer

According to Studzinski,in a 2014 Fortune magazine article,competing activist investor pressures push company management to decide between bottom line profits or social and environmental benefits.The company can only choose one or the other.

Correct AnswerverifiedShow Answer

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The best way to minimize improper and unethical conduct is to __ and _.

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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.

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