Practice Quiz 12 1
Practice Quiz
(See related pages)
The correct answer for each question is indicated by a .
Top of Form
1 CORRECT
What best describes the separation of ownership and control?
A)
Shareholders own stocks but do not run the company.
B)
Shareholders can freely trade the company stocks.
C)
Shareholders provide necessary information to the company.
D)
Managers control the company but may also have stock ownership.
Feedback:
LO: 12-01
Topic: Strategic Management and the Role of Business in Society
Blooms: Understand
AACSB: Analytic
Difficulty: 2 Medium
Page: 334
Shareholders own a piece of the company but rely on top management's leadership to run the firm.
2 INCORRECT
The _____ is the institutional backbone of modern free-market economy.
A)
Family owned firm
B)
Agency theory
C)
Public stock company
D)
Nonprofit organization
Feedback:
LO: 12-01
Topic: Strategic Management and the Role of Business in Society
Blooms: Understand
AACSB: Analytic
Difficulty: 1 Easy
Page: 334
Publicly traded companies are the backbone of today's economy.
3 CORRECT
Starbucks developed a sourcing policy to help source coffee of the highest quality while adhering to fair trade and responsible growing practices. What type of responsibility does Starbucks have in this example?
A)
Economic
B)
Legal
C)
Ethical
D)
Philanthropic
Feedback:
LO: 12-02
Topic: Stakeholder Impact Analysis
Blooms: Apply
AACSB: Analytic
Difficulty: 2 Medium
Page: 339
Starbucks is being ethically responsible in this action.
4 INCORRECT
Which of the following is NOT an essential component of Sarbanes-Oxley Act?
A)
Accounting oversight by CEO
B)
Auditor independence
C)
Shareholders' responsibility to ensure accounting integrity
D)
All of these
Feedback:
LO: 12-02
Topic: Stakeholder Impact Analysis
Blooms: Analyze
AACSB: Analytic
Difficulty: 3 Hard
Page: 339
Sarbanes-Oxley Act forces CEOs to be more responsible for the accuracy of accounting reports.
5
(See related pages)
The correct answer for each question is indicated by a .
Top of Form
1 CORRECT
What best describes the separation of ownership and control?
A)
Shareholders own stocks but do not run the company.
B)
Shareholders can freely trade the company stocks.
C)
Shareholders provide necessary information to the company.
D)
Managers control the company but may also have stock ownership.
Feedback:
LO: 12-01
Topic: Strategic Management and the Role of Business in Society
Blooms: Understand
AACSB: Analytic
Difficulty: 2 Medium
Page: 334
Shareholders own a piece of the company but rely on top management's leadership to run the firm.
2 INCORRECT
The _____ is the institutional backbone of modern free-market economy.
A)
Family owned firm
B)
Agency theory
C)
Public stock company
D)
Nonprofit organization
Feedback:
LO: 12-01
Topic: Strategic Management and the Role of Business in Society
Blooms: Understand
AACSB: Analytic
Difficulty: 1 Easy
Page: 334
Publicly traded companies are the backbone of today's economy.
3 CORRECT
Starbucks developed a sourcing policy to help source coffee of the highest quality while adhering to fair trade and responsible growing practices. What type of responsibility does Starbucks have in this example?
A)
Economic
B)
Legal
C)
Ethical
D)
Philanthropic
Feedback:
LO: 12-02
Topic: Stakeholder Impact Analysis
Blooms: Apply
AACSB: Analytic
Difficulty: 2 Medium
Page: 339
Starbucks is being ethically responsible in this action.
4 INCORRECT
Which of the following is NOT an essential component of Sarbanes-Oxley Act?
A)
Accounting oversight by CEO
B)
Auditor independence
C)
Shareholders' responsibility to ensure accounting integrity
D)
All of these
Feedback:
LO: 12-02
Topic: Stakeholder Impact Analysis
Blooms: Analyze
AACSB: Analytic
Difficulty: 3 Hard
Page: 339
Sarbanes-Oxley Act forces CEOs to be more responsible for the accuracy of accounting reports.
5