Nur 4040 questions and Answers
1) From the perspective of the public, the primary job of the board of directors is:
A) to lend credence to the decisions of the executive committee.
B) dictated solely by legal requirements.
C) to act as representatives for public identification.
D) to closely monitor the actions of management.
E) insulated from legal judgments because management actually makes the decisions.
- Answ D) to closely monitor the actions of management.
2) The relationship among the board of directors, top management, and shareholders is
referred to as
A) corporate synergy.
B) corporate management.
C) corporate governance.
D) corporate strategy.
E) corporate responsibility - Answ C) corporate governance.
3) The requirements of a board of directors vary significantly by country and by state;
however, there is a developing consensus as to what the major responsibilities should
be. Which of the following is not one of the responsibilities?
A) effective board leadership including the processes, makeup and output of the board
B) strategy of the organization
C) risk vs. initiative and the overall risk profile of the organization
D) becoming directly involved in managerial decisions
E) sustainability - Answ D) becoming directly involved in managerial decisions
4) Which of the following statements is not true regarding the board of directors?
A) The board is charged by law to act with due care.
B) If a director or the board as a whole fails to act with due care and, as a result, the
corporation is in some way harmed, the careless director or directors can be held
personally liable for the harm done.
C) Director liability insurance is often needed to attract people to become members of
boards.
D) Directors must be aware of the needs of various constituent groups to balance all
their interests.
E) More than half of all publicly traded companies in the United States are incorporated
in New York, requiring that the corporation be managed in accordance with NY state
laws. - Answ E) More than half of all publicly traded companies in the United States are
incorporated in New York, requiring that the corporation be managed in accordance with
NY state laws.
, 5) More than ________ of outside directors surveyed said that they had been named as
part of a lawsuit against the corporation.
A) 40%
B) 50%
C) 60%
D) 70%
E) 80% - Answ E) 80%
6) A careless director or directors can be held personally liable for harm done to the
corporation if they failed to act with
A) codetermination.
B) figurehead role.
C) cumulative voting.
D) accountability.
E) due care. - Answ E) due care.
7) Which of the following is not a task of the board of directors in strategic
management?
A) to monitor
B) to implement
C) to influence
D) to initiate and determine
E) to evaluate - Answ B) to implement
8) Catalyst-level boards of directors typically
A) are less involved than active participation boards.
B) take leading roles in establishing and modifying the company mission, objectives,
and strategy.
C) are involved in a limited degree of key decision-making.
D) are held to a greater degree of legal responsibility.
E) experience more financial success than less involved boards. - Answ B) take leading
roles in establishing and modifying the company mission, objectives, and strategy.
9) A highly involved board does all of the following EXCEPT
A) tends to be very active.
B) provides advice when necessary.
C) keeps management alert.
D) takes their tasks of initiating and determining strategy very seriously.
E) manage the everyday operations of the organization. - Answ E) manage the
everyday operations of the organization.
1) From the perspective of the public, the primary job of the board of directors is:
A) to lend credence to the decisions of the executive committee.
B) dictated solely by legal requirements.
C) to act as representatives for public identification.
D) to closely monitor the actions of management.
E) insulated from legal judgments because management actually makes the decisions.
- Answ D) to closely monitor the actions of management.
2) The relationship among the board of directors, top management, and shareholders is
referred to as
A) corporate synergy.
B) corporate management.
C) corporate governance.
D) corporate strategy.
E) corporate responsibility - Answ C) corporate governance.
3) The requirements of a board of directors vary significantly by country and by state;
however, there is a developing consensus as to what the major responsibilities should
be. Which of the following is not one of the responsibilities?
A) effective board leadership including the processes, makeup and output of the board
B) strategy of the organization
C) risk vs. initiative and the overall risk profile of the organization
D) becoming directly involved in managerial decisions
E) sustainability - Answ D) becoming directly involved in managerial decisions
4) Which of the following statements is not true regarding the board of directors?
A) The board is charged by law to act with due care.
B) If a director or the board as a whole fails to act with due care and, as a result, the
corporation is in some way harmed, the careless director or directors can be held
personally liable for the harm done.
C) Director liability insurance is often needed to attract people to become members of
boards.
D) Directors must be aware of the needs of various constituent groups to balance all
their interests.
E) More than half of all publicly traded companies in the United States are incorporated
in New York, requiring that the corporation be managed in accordance with NY state
laws. - Answ E) More than half of all publicly traded companies in the United States are
incorporated in New York, requiring that the corporation be managed in accordance with
NY state laws.
, 5) More than ________ of outside directors surveyed said that they had been named as
part of a lawsuit against the corporation.
A) 40%
B) 50%
C) 60%
D) 70%
E) 80% - Answ E) 80%
6) A careless director or directors can be held personally liable for harm done to the
corporation if they failed to act with
A) codetermination.
B) figurehead role.
C) cumulative voting.
D) accountability.
E) due care. - Answ E) due care.
7) Which of the following is not a task of the board of directors in strategic
management?
A) to monitor
B) to implement
C) to influence
D) to initiate and determine
E) to evaluate - Answ B) to implement
8) Catalyst-level boards of directors typically
A) are less involved than active participation boards.
B) take leading roles in establishing and modifying the company mission, objectives,
and strategy.
C) are involved in a limited degree of key decision-making.
D) are held to a greater degree of legal responsibility.
E) experience more financial success than less involved boards. - Answ B) take leading
roles in establishing and modifying the company mission, objectives, and strategy.
9) A highly involved board does all of the following EXCEPT
A) tends to be very active.
B) provides advice when necessary.
C) keeps management alert.
D) takes their tasks of initiating and determining strategy very seriously.
E) manage the everyday operations of the organization. - Answ E) manage the
everyday operations of the organization.
