Question 1

Informational controls involve the balance and alignment of the culture,rewards,and boundaries of a firm.

Accepted Answer

A) True 
 B)False

Question 2

Tesco was forced to restate its earnings for the first half of 2014 to 431 million USD because senior managers in the U.K.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 systems

Question 3

In 2016,John Stumpf,CEO of Wells Fargo,was forced to resign after both stakeholder and government scrutiny of the practices of the firm.Firm management had instituted very aggressive sales goals for employees,leading employees to create sham accounts using the names and money of the real customers of the bank.This is an example of ________ corporate governance.

Accepted Answer

A)   sound
B)   controlled
C)   flawed
D)   guided

Question 4

According to the Business Roundtable,representing the largest U.S.corporations,the most important quality of a good board of directors is that they do not get involved in critiquing company strategies.

Accepted Answer

A) True 
 B)False  False

Question 5

The Lending Club removed CEO Renaud Laplanche in 2016.Hans Morris,the company executive chairman,lauded him,saying his entrepreneurial spirit was critical to the success of the firm.But he also signaled the board was removing Mr.Laplanche because he had failed to build a strong control system and culture,stating that as a public company that provides a financial service,Lending Club must meet the industry high standards of transparency and disclosure.This kind of dismissal signals what message to the public?

Accepted Answer

A)   Mr. Laplanche was not a creative entrepreneur.
B)   The board of directors is active and engaged.
C)   The board of directors needed a scapegoat to cover up their ineffectiveness.
D)   Mr. Laplanche was dishonest.

Question 6

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.

Question 7

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

Question 8

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) .

Question 9

Once a strong and healthy organizational culture has been established,it becomes self-sustaining.

Accepted Answer

A) True 
 B)False

Question 10

Contemporary approaches to strategic control rely primarily on

Accepted Answer

A)   feedback controls.
B)   single-loop learning.
C)   double-loop learning.
D)   comparative learning.

Question 11

The power of shareholders has intensified in recent years because of the

Accepted Answer

A)   decreasing influence of large institutional investors.
B)   increasing influence of large institutional investors.
C)   decline in the number of interested institutional investors.
D)   increasing influence of small individual investors.

Question 12

In the contemporary approach to strategic control,adapting to and anticipating both internal and external environmental change is an integral part.The relationships between ________,________,and ________ are highly interactive.

Accepted Answer

A)   change; leadership; control
B)   strategy formulation; leadership; control
C)   strategy formulation; implementation; control
D)   strategic information; organizational behavior; implementation

Question 13

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.

Question 14

Many institutional investors are aggressive in protecting and enhancing their investments.They are shifting from ________ to owners.They are assuming the role of ________ shareholders and rigorously analyzing issues of corporate governance.In the process,they are reinventing systems of corporate monitoring and accountability.

Accepted Answer

A)   sellers; part-time
B)   investors; full-time
C)   investors; part-time
D)   traders; permanent

Question 15

In addition to an annual base salary of 1.3 million USD and 10.4 million USD in stock compensation and bonuses,Heather Bresch,CEO of Mylan Pharmaceuticals,also received 6.4 million USD in other compensation in 2015.This included 19,200 USD for the use of a company-provided automobile and 310,000 USD in personal use of the company jet.Which of the following statements is true regarding this situation?

Accepted Answer

A)   Shareholders favor diversification.
B)   Executives favor diversification.
C)   Top level managers always act in the shareholder interest.
D)   Top level managers may pursue their own interests over that of the company.

Question 16

Expropriation of minority shareholders means that minority shareholders

Accepted Answer

A)   must sell their shares upon demand.
B)   cannot own shares in foreign firms.
C)   do not receive dividends.
D)   are adversely affected by the actions of controlling shareholders.

Question 17

Discuss the differences between informational control and behavioural control and when each is appropriate.

Accepted Answer

Adapting to and anticipating both internal and external environmental change is an integral part of strategic control.The relationships between strategy formulation,implementation,and control are highly interactive,as suggested by Exhibit 9.2.The exhibit also illustrates two different types of strategic control: informational control and behavioral control.Informational control is a method of organizational control in which a firm gathers and analyzes information from the internal and external environment in order to obtain the best fit between the organization's goals and strategies and the strategic environment.It is primarily concerned with whether the organization is doing the right things.Behavioral control is a method of organizational control in which a firm influences the actions of employees through culture,rewards,and boundaries.It asks if the organization is doing things right in the implementation of its strategy.Both the informational and behavioral components of strategic control are necessary,but not sufficient,conditions for success.What good is a well-conceived strategy that cannot be implemented? Or what use is an energetic and committed workforce if it is focused on the wrong strategic target?

Question 18

For businesses facing complex and turbulent business environments,which of the following is true?

Accepted Answer

A)   Goals and objectives that are uncertain prevent opportunism.
B)   Traditional strategic controls are usually inappropriate.
C)   Complacency about predetermined milestones can prevent adaptability.
D)   Detailed plans are needed to maintain order. B

Question 19

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.

Question 20

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.

Exam 9: Strategic Control and Corporate Governance

Informational controls involve the balance and alignment of the culture,rewards,and boundaries of a firm.

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 U.K.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

Correct Answer
verified

According to the Business Roundtable,representing the largest U.S.corporations,the most important quality of a good board of directors is that they do not get involved in critiquing company strategies.

Correct Answer
verified
False

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

Correct Answer
verified

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

Correct Answer
verified

CEO duality refers to a situation in which the CEO

Correct Answer
verified

Once a strong and healthy organizational culture has been established,it becomes self-sustaining.

Correct Answer
verified

Contemporary approaches to strategic control rely primarily on

Correct Answer
verified

The power of shareholders has intensified in recent years because of the

Correct Answer
verified

In the contemporary approach to strategic control,adapting to and anticipating both internal and external environmental change is an integral part.The relationships between ,,and are highly interactive.

Correct Answer
verified

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

Correct Answer
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Correct Answer
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Correct Answer
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Expropriation of minority shareholders means that minority shareholders

Correct Answer
verified

Discuss the differences between informational control and behavioural control and when each is appropriate.

For businesses facing complex and turbulent business environments,which of the following is true?

Correct Answer
verified
B

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

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

Correct Answer
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Exam 9: Strategic Control and Corporate Governance

Informational controls involve the balance and alignment of the culture,rewards,and boundaries of a firm.

Correct AnswerverifiedShow Answer

Tesco was forced to restate its earnings for the first half of 2014 to 431 million USD because senior managers in the U.K.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 AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

According to the Business Roundtable,representing the largest U.S.corporations,the most important quality of a good board of directors is that they do not get involved in critiquing company strategies.

Correct AnswerverifiedFalse

Correct AnswerverifiedShow Answer

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

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

CEO duality refers to a situation in which the CEO

Correct AnswerverifiedShow Answer

Once a strong and healthy organizational culture has been established,it becomes self-sustaining.

Correct AnswerverifiedShow Answer

Contemporary approaches to strategic control rely primarily on

Correct AnswerverifiedShow Answer

The power of shareholders has intensified in recent years because of the

Correct AnswerverifiedShow Answer

In the contemporary approach to strategic control,adapting to and anticipating both internal and external environmental change is an integral part.The relationships between ________,________,and ________ are highly interactive.

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Expropriation of minority shareholders means that minority shareholders

Correct AnswerverifiedShow Answer

Discuss the differences between informational control and behavioural control and when each is appropriate.

For businesses facing complex and turbulent business environments,which of the following is true?

Correct AnswerverifiedB

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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 U.K.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
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Correct Answer
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Correct Answer
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False

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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In the contemporary approach to strategic control,adapting to and anticipating both internal and external environmental change is an integral part.The relationships between ,,and are highly interactive.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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B

Correct Answer
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Correct Answer
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