MG - 495 Business Policy Mid-Term Examination - (Chapters 1 - 5 are covered) There are 25 multiple choice questions (each worth 3 points) and 5 short answer/essay questions (each worth 9 points) for a total of 120 possible points. All of the questions for this exam can be answered by simply using the text.
Multiple Choice Questions – Each question worth 3 points
1.Research suggests that strategic management evolves through four sequential phases in corporations. The first phase is _____. a.externally oriented planning
b.basic financial planning
c.internally oriented planning
d.forecast based planning
2.One of the benefits of globalization is _____.
a.economies of scale
b.higher production costs
c.increased union negotiations
e.additional human resource training
3.The monitoring, evaluating, and disseminating of information from the external and internal environments to key people within the corporation is referred to as _____. a.environmental scanning
d.environmental opportunity scanning
4.To _____ is an example of a corporate strategy.
a.diversify a product line to appeal to more people
b.increase sales by 10% over last year
c.pay highest salaries to keep high quality employees
d.develop and sell quality appliances worldwide
e.divide a sales region into a group of sales districts
5.The strategic decision making process is an eight-step approach to decision-making and is most useful when operating in the _____. a.adaptive mode
e.a la mode
6.By law, a board of directors has a fiduciary responsibility to the firm's stockholders, and is charged to act with _____, and if a director or the board as a whole fails so act and the corporation is in some way harmed as a result of this failure, the careless director or directors can be held personally liable for harm done. a.codetermination
7.One of the current trends in corporate governance which is likely to continue for the foreseeable future is that _____. a.boards will be increasingly looking for international experience in board members b.board members will be expected to sell off any stock they may own in the corporation c.CEOs will increasingly hold the title of Chairman of the Board d.the percentage of inside directors will increase
e.the lead director will typically be the CEO
8.The combined chair/CEO position _____.
a.is being increasingly criticized because of the potential for conflict of interest b.endangers the ability to properly oversee top management c.is separated by law in Germany, the Netherlands, and Finland d.all of the above
e.none of the above
a.is the process by which both management and the board establish corporate strategic management b.is the inclusion of a corporation's employees on its board c.occurs when one or more individuals on one board also serve on other boards d.is present when all board members are also employed by the corporation occurs when minority shareholders concentrate their votes
10.An agency problem can occur when _____.
a.the desires and objectives of the owners and agents conflict b.it is difficult or expensive for the owners to verify what the agent is actually doing c.when the owners and agents have different attitudes toward risk d.both a and b are correct
e.both b and c are correct
11.The term "social responsibility" can be viewed as a combination of an _____. a.organization's ethical and discretionary responsibilities b.organization's legal and ethical responsibilities
c.organization's economic and ethical responsibilities
d.organization's financial and economic responsibilities