Chapter4Version1.docx

Chapter4Version1.docx

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Chapter4Version1

1.

Whichofthefollowingisnotoneofthemajorexpectationsinfluencingorganisationalpurpose?

a.

Governmentpolicy

b.

Corporategovernance

c.

Businessethics

d.

Stakeholders

e.

Culturalcontext

2.

Whichofthefollowingisnotareasonfortheincreasingimportanceofcorporategovernance?

a.

Theneedtoseparateownershipandmanagement

b.

Thebusinessethicsoftheorganisation

c.

Theneedtomakeorganisationsvisiblyaccountabletoawiderangeofstakeholders

d.

TheincidenceofscandalssuchasEnronandParmalat

3.

Whichofthefollowingisadescriptionofthegovernancechain?

a.

Thechainrepresentsthelinkagebetweencurrentgovernmentlegislationandtheactionsofanorganisation.

b.

Thegovernancechaindescribesthereportingrelationshipsbetweenmanagersandtheirsubordinates.

c.

ThegovernancechainconcernshowtheHRdepartmentlooksafteritsemployees.

d.

Thechainrepresentsallgroupsthathaveinfluenceonanorganisation'spurposeseitherthroughownershipormanagement.

4.

Whichofthefollowingisnotastrengthoftheshareholdermodelofgovernance?

a.

Dynamicmarketorientation

b.

Short-termism

c.

Fluidcapitalinvestment

d.

Extensiveinternationalisation

5.

WhichofthefollowingisnotaweaknessoftheJapanesemodelofgovernance?

a.

Financialspeculation

b.

Secretiveandsometimescorruptgovernanceprocedures

c.

Weakaccountability

d.

Verylongtermindustrialstrategy

6.

Inmostcountriestheleastprotectedstakeholderis:

a.

Thetradecreditor

b.

Thebanksprovidingloans

c.

Shareholders

d.

Theemployees

7.

Whichframeworkhasbeenusedtogivemorerightstoindividualconsumersofpublicservices?

a.

AuditCommission

b.

Annualreports

c.

Bestvalueframework

d.

Localgovernmentregulations

8.

Inwhichcountriesistheexposureofmanagerstothethreatoftake-overregardedasaprimarymeansofensuringthegoodperformanceoforganisations?

a.

Japan

b.

Germany,Switzerland,AustriaandtheNetherlands

c.

UKandUSA

d.

France,ItalyandSpain

9.

Whichofthefollowingisnotanexampleofastakeholder?

a.

Competitor

b.

Shareholder

c.

Employee

d.

Customer

e.

Lendinginstitution

10.

Whichthreetypesofstakeholderisitusefultoconsiderintermsofhowtheymightaffectthesuccessorfailureofastrategy?

a.

Stakeholdersfromthemarketenvironment,fromtheeconomicenvironmentandfromthetechnologicalenvironment

b.

Stakeholdersfromthepublicsector,fromtheprivatesectorandfromthenot-for-profitsector

c.

Stakeholdersfromoutsideandfrominsidetheorganisation

d.

Stakeholdersfromthemarketenvironment,fromthesocio-politicalenvironmentandfromthetechnologicalenvironment

11.

Whichofthefollowingdoesstakeholdermappingnothelpustounderstand?

a.

Whetherthelevelsofinterestandpowerofstakeholdersproperlyreflectthecorporategovernanceframework

b.

Whatthesourcesoffundingfortheorganisationare

c.

Whothekeyblockersandfacilitatorsofastrategyare

d.

Whetherrepositioningofcertainstakeholdersisdesirableorfeasible

12.

Whichofthefollowingisnotakeyindicatorofpowerwithinanorganisation?

a.

Claimonresources

b.

Acharismaticpersonality

c.

Representationinpowerfulpositions

d.

Symbolssuchasofficesize,executivecar

13.

Whichofthefollowingisnotasourceofpowerwithinanorganisation?

a.

Charismaticleadership

b.

Formalpower

c.

Negotiatingskills

d.

Basictechnologicalskills

14.

Whichofthefollowingisnotoneofthethreelevelsofbusinessethics?

a.

Thebroadethicalstanceoftheorganisationtowardsitsstakeholdersandsociety

b.

Corporatesocialresponsibility

c.

Individualbehaviourandactions

d.

Thecorporategovernanceframework

15.

Whatiscorporatesocialresponsibility?

a.

Justanothermanagementfad

b.

Thewaysanorganisationseekstoexceedtheminimumobligationstostakeholders

c.

TheformalwaysinwhichanorganisationhastopresentitsperformancetothepublicattheannualshareholdersmeetingandintheAnnualReport

d.

Itisanotherwayofsayingbusinessethics.

16.

Intheprivatesector,aBoardofDirectorsisresponsibleforstrategydevelopmentonbehalfofalloftheorganisation'sstakeholders.

a.

True

b.

False

17.

Whatdoyouunderstandbytheterm'corporatesocialresponsibility'?

a.

Itreferstoanorganisationthattakesmoreresponsibilityforthesocialinteractionoftheiremployees.

b.

Itreferstoanorganisationthatismoreresponsivetotheneedsoftheirvariousstakeholdergroups.

c.

Itreferstoanorganisationthatismoreaccountabletoitsboardofdirectors.

d.

Itreferstoanorganisationthatactsinaresponsiblemannerinrelationtothesocial,economicandenvironmentalimpactsofitsactionsanddecisions.

18.

Whichofthefollowingisnotanargumentagainstcorporatesocialresponsibility?

a.

Businessorganisationsexisttomakeprofitsforshareholdersandtousetheirresourcestofurthertheinterestsofgroupsotherthantheownersofthebusinesswouldbeanabuseofmanagerialpower.

b.

Themostefficientuseoftheworld'sresourcesresultsfromtheoperationoffreemarketsandsotoconstrainthemovementofsuchresourceswouldleadtoinefficiency.

c.

Organisationscontrolsuchlargeamountsofresourcesthattheycandestabilisenationaleconomiesbymovingtheseresourcestoanothercountryandsotheirdecision-makingmustbemoretransparent.

d.

Managersaretrainedtomanagebusinessesnoteducation,healthandenvironmentalpolicy.Theydonothaveexpertiseintheseareas.Politiciansareelectedforthispurpose.

e.

Itisnotrealistictoexpectorganisationstomaketheirinternalbusinesspublicwhentheyaretryingtocompeteinglobalmarkets.

19.

Whichofthefollowingisnotanargumentinfavourofcorporatesocialresponsibility?

a.

Largeorganisationsexertsomuchinfluenceonthelivesofpeople（i.e.jobs,productsafety,theenvironment,healthandsafetyatwork,etc.）thattheymustbeheldaccountableaspartofademocraticsociety.

b.

Organisationscontrolsuchlargeamountsofresourcesthattheycandestabilisenationaleconomiesbymovingtheseresourcestoanothercountryandsotheirdecision-makingmustbemoretransparent.

c.

Largeorganisationsinfluencemanyaspectsofourlives,suchaseducation,theenvironment,healthcareandhousing,andsoshouldbemadelegallyresponsibleinrespectoftheseissues.

d.

Largeorganisationsshouldconcentrateonwhattheyaregoodat,whichiswealthcreation,andhelpsocietythroughthecreationofjobsandincomes.

e.

Toavoidcorruptionandensurethelawisupheld,decision-makingprocessesandothercorporategovernanceissuesshouldbetransparent.

20.

Stakeholdersarethosepeoplewhoholdamonetarystakeinanorganisation.

a.

True

b.

False

21.

Akeysourceofpowerthatcorporategovernanceattemptstocontrolis:

a.

Finance

b.

Leadership

c.

Communicationprocesses

d.

Information

22.

Whichofthefollowingarereasonswhycorporategovernancehasbecomeanincreasinglyimportantissuefororganisations?

Chooseallthatapply.

a.

Theseparationofownershipandmanagementcontroloforganisations.

b.

Theoccurrenceofcorporatescandalsinthelate1990s.

c.

Theneedforincreasedaccountabilitytowiderstakeholderinterests.

d.

Decreasedpowerformiddlemanagers.

23.

Whichthreeofthefollowingarelikelytomakeupthegovernancechaininasmallfamilybusiness?

a.

Thefamilyshareholders.

b.

Membersoftheboard

c.

Managers

d.

Employees

24.

Whichofthefollowingaredisadvantagesclaimedforthestakeholdermodelofgovernance?

Chooseallthatapply.

a.

Closemonitoringofmanagementmakesitdifficultforthemtomakedecisionsquickly.

b.

Withoutpressurefromshareholders,projectsmaybeadoptedthatleadtoresultsthatarebelowmarketexpectations.

c.

Growthandentrepreneurialactivitysuffersbecausetherearefeweralternativesforraisingfinance.

d.

Employeessufferfinanciallyasalargerproportionoffundsaredivertedtopaydividends.

25.

Whichofthefollowingareadvantagesclaimedforthestakeholdermodelofgovernance?

Chooseallthatapply.

a.

Employeeinfluencemaydetermanagementfromadoptinghigh-riskpolicies.

b.

Investmentbyblocksofinvestorsmayincreasethelevelofscrutinyofmanagementdecisions.

c.

Majorinvestorsaremorelikelytoregardtheirinvestmentsasbeinglongterm.

d.

Therearegreaterincentivesforentrepreneurs.

26.

Usingthepower/interestmatrixmanagementidentifythatonegrouphasahighlevelofinterestandahighlevelofpower.Whatstrategyshouldbeadoptedinrelationtothisgroup?

Chooseallthatapply.

a.

Keepsatisfied

b.

Keepinformed

c.

Minimaleffort

d.

Keyplayers

27.

Whichtwoofthefollowingarenotcategoriesofexternalstakeholder?

a.

Managers

b.

Social/political

c.

Technological

d.

Community

e.

Economic

f.

Employees

28.

Sincetheexpectationsofstakeholdergroupsdiffer,itisnormalforconflicttoexistregardingtheimportanceofmanyaspectsofstrategy.

a.

True

b.

False

29.

Whereanorganisationhasanethicalstancethatincorporatesmultiplestakeholdero