MGMT344 QUESTIONS AND ANSWERS A+ GRADED .Buy Quality Materials!
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Course
MGMT344
Institution
MGMT344
MGMT344 QUESTIONS AND ANSWERS A+ GRADED .Buy Quality Materials!
Which of the following is not (according to the textbook) a potential disadvantage of the 'shareholder model of governance' dominant in stock-market listed companies?
a. Weak monitoring can allow CEOs to empire-build in ways th...
MGMT344 QUESTIONS AND ANSWERS A+ GRADED
.Buy Quality Materials!
Which of the following is not (according to the textbook) a potential disadvantage
of the 'shareholder model of governance' dominant in stock-market listed
companies?
a. Weak monitoring can allow CEOs to empire-build in ways that do not add value
to shareholders.
b. If all shareholders have small holdings as a percentage of the whole,
monitoring of the board is diluted.
c. Minority shareholders can be vulnerable if there are dominant institutional
shareholders with different interests.
d. It causes managers to emphasise short-term gains at the expense of long-term
projects.
e. Managers are free to make better decisions in the company's interest, as they
are not subject to conflicting demands from different stakeholder groups.
e. Managers are free to make better decisions in the company's interest, as they are not
subject to conflicting demands from different stakeholder groups.
Which of the following is untrue about the stances firms can take towards social
responsibility?
a. A central idea of the 'enlightened self interest' approach is that responsible
strategies ultimately reward shareholders.
b. The laissez-faire stance may be adopted by smaller businesses that lack the
resources to do more than minimally comply with regulations.
c. Voluntary publication of sustainability measures such as triple bottom line is
part of the 'forum for stakeholder interaction' stance.
d. A stance as 'shaper of society' is mostly associated with public sector
organisations and social entrepreneurs
e. As discussed in the lecture, the laissez-faire stance is ultimately more
profitable to owners and shareholders.
e. As discussed in the lecture, the laissez-faire stance is ultimately more profitable to
owners and shareholders.
Which of the following is an accurate statement about the role and conduct of
boards of directors?
, a. The role of executive directors has been advocated more strongly in recent
years.
b. Board stability and uniformity are important to ensure consensus at all times.
c. They are typically expected to work closely with management on a day to day
basis.
d. They may delegate the strategic management process almost entirely to
management, or may engage in it actively.
e. Directorships are typically ceremonial in nature, involving minimal
responsibilities and long lunches
d. They may delegate the strategic management process almost entirely to
management, or may engage in it actively.
Which of the following does principal-agent theory highlight as a problem within
the chain of corporate governance?
a. There is an imbalance of knowledge in which individuals higher up the chain
(investors, boards) know more than those who are lower in the chain (managers,
executives).
b. Bonus schemes introduced to incentivise desired management performance
are prone to 'gaming' by managers.
c. Individuals acting within the chain of governance act both as principals and as
agents.
d. The shareholder model of governance may leave minority shareholders
vulnerable to the actions of majority shareholders.
e. It is very difficult for agents such as senior managers to monitor closely the
performance of principals such as the board of directors
b. Bonus schemes introduced to incentivise desired management performance are
prone to 'gaming' by managers.
Which of these characteristics should not be used in identifying a key driver for
scenario analysis?
a. It should be something that is not closely correlated with other drivers used in
the analysis.
b. It should be something for which the future is highly uncertain.
c. It should be something whose outcome has clearly identifiable high impact on
the business.
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