Question 1

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.E) A) and B)
F) C) and D)

Question 2

In addition to traditional institutional investors,a growing set of activist investors aggressively pressure firm managers for major changes.These activist investors include individual investors,such as ________,and activist investor funds,such as ________.

Accepted Answer

A)  CalPERS;Bill Gates
B)  ValuAct;Trian
C)  Berkshire Hathaway;Warren Buffet.
D)  Carl Icahn;Pershing Square.E) All of the above
F) A) and B)

Question 3

In trying to assure that managerial actions lead to shareholder value maximization,a risk can come about if the market value of a firm becomes less than its book value.The risk is

Accepted Answer

A)  it becomes an attractive takeover target.
B)  the firm will be delisted by the stock exchange.
C)  the Securities and Exchange Commission will not allow it to declare dividends until the market value exceeds the book value.
D)  the firm will be unable to service its debt.E) B) and C)
F) A) and D)

Question 4

Contemporary strategic controls involve comparing actual performance to predetermined goals.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not one of the characteristics of a contemporary control system?

Accepted Answer

A)  It is a key catalyst for an ongoing debate about underlying data,assumptions,and action plans.
B)  It must focus on constantly changing information that is strategically important.
C)  It circumvents the need for face-to-face meetings among superiors,subordinates,and peers.
D)  It generates information that is important enough to demand regular and frequent attention.E) B) and C)
F) B) and D)

Question 6

Continuous monitoring,in the contemporary approach,is beneficial because

Accepted Answer

A)  it reduces time lags.
B)  it increases the time it takes to detect changes in the competitive environment.
C)  organizational flexibility is reduced.
D)  organization response time is increased.E) A) and D)
F) All of the above

Question 7

In order to have effective board operations,firms need to cultivate engaged and committed boards.

Accepted Answer

A) True 
 B)False

Question 8

Effectively implementing strategy requires manipulating three key control levers: culture,rewards,and boundaries.What are the compelling reasons for an increased emphasis on culture and rewards in a system of behavior controls?

Accepted Answer

There are two compelling reasons for an ...

Question 9

Effective short-term objectives should be ________ and ________.

Accepted Answer

A)  specific;measurable
B)  achievable;not challenging
C)  motivating;not limiting
D)  time defined;not limitingE) C) and D)
F) A) and C)

Question 10

Behavioral controls are aspects of strategic change that involve finding the appropriate ________ and ________ among the culture,rewards,and boundaries of the firm.

Accepted Answer

A)  balance;alignment
B)  measure;balance
C)  alignment;balance
D)  measure;outcomeE) B) and C)
F) A) and D)

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a reason analyst recommendations are often more optimistic than warranted by an objective analysis of the facts?

Accepted Answer

A)  Many analysts fail to grasp the gravity of the problems facing a company.
B)  Sell recommendations generate lower commissions than buy recommendations.
C)  The firms for which analysts work may have lucrative investment banking relationships with the firm.
D)  Analysts are often pressured by their superiors to overlook negative information.E) C) and D)
F) B) and D)

Question 13

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.E) B) and C)
F) C) and D)

Question 14

Zappos and Amazon focus on customer service.What purpose does this serve in terms of attaining behavioral control?

Accepted Answer

A)  It uses culture to sustain their primary source of competitive advantage.
B)  It uses rewards and incentives to sustain corporate culture.
C)  It demonstrates to employees the importance of articulating explicit goals and objectives.
D)  It gives management more control over employees.E) A) and D)
F) A) and B)

Question 15

Andy Grove,former CEO and cofounder of Intel,encouraged openness by not having many of the trappings of success.This is an example of evolving from boundaries to rewards and culture by

Accepted Answer

A)  hiring people who identify with the dominant values of the organization.
B)  developing managerial role models.
C)  maximizing training and indoctrination.
D)  aligning rules with organizational goals and objectives.E) All of the above
F) B) and D)

Question 16

In principal-principal conflicts (conflicts between controlling shareholders and minority shareholders) ,the ownership (of equity) is

Accepted Answer

A)  widely dispersed.
B)  controlled almost completely by management.
C)  concentrated.
D)  often held by employee stock ownership programs.E) C) and D)
F) B) and C)

Question 17

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.E) A) and D)
F) B) and C)

Question 18

Research has shown that executives who have large holdings of stock in their firm are more likely to have diversification strategies more consistent with shareholder interests,like increasing long-term returns.

Accepted Answer

A) True 
 B)False

Question 19

Rules and regulations are examples of ________ and ________.

Accepted Answer

A)  controls;behaviors
B)  controls;norms
C)  boundaries;behaviors
D)  boundaries;constraintsE) A) and D)
F) A) and B)

Question 20

Contemporary approaches to strategic control rely primarily on

Accepted Answer

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

Exam 9: Strategic Control and Corporate Governance

Rules and regulations are examples of and .

Correct Answer
verified

Correct Answer
verified

Contemporary strategic controls involve comparing actual performance to predetermined goals.

Correct Answer
verified

Research has shown that executives who have large holdings of stock in their firm are more likely to have diversification strategies more consistent with shareholder interests,like increasing long-term returns.

Correct Answer
verified

In principal-principal conflicts (conflicts between controlling shareholders and minority shareholders) ,the ownership (of equity) is

Correct Answer
verified

In trying to assure that managerial actions lead to shareholder value maximization,a risk can come about if the market value of a firm becomes less than its book value.The risk is

Correct Answer
verified

In order to have effective board operations,firms need to cultivate engaged and committed boards.

Correct Answer
verified

Which of the following is not a reason analyst recommendations are often more optimistic than warranted by an objective analysis of the facts?

Correct Answer
verified

Continuous monitoring,in the contemporary approach,is beneficial because

Correct Answer
verified

Behavioral controls are aspects of strategic change that involve finding the appropriate and among the culture,rewards,and boundaries of the firm.

Correct Answer
verified

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

Correct Answer
verified

Effective short-term objectives should be and .

Correct Answer
verified

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

Correct Answer
verified

Zappos and Amazon focus on customer service.What purpose does this serve in terms of attaining behavioral control?

Correct Answer
verified

Contemporary approaches to strategic control rely primarily on

Correct Answer
verified

Effectively implementing strategy requires manipulating three key control levers: culture,rewards,and boundaries.What are the compelling reasons for an increased emphasis on culture and rewards in a system of behavior controls?

Correct Answer
verified
There are two compelling reasons for an ...
View Answer

In addition to traditional institutional investors,a growing set of activist investors aggressively pressure firm managers for major changes.These activist investors include individual investors,such as ,and activist investor funds,such as .

Correct Answer
verified

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

Correct Answer
verified

Andy Grove,former CEO and cofounder of Intel,encouraged openness by not having many of the trappings of success.This is an example of evolving from boundaries to rewards and culture by

Correct Answer
verified

Which of the following is not one of the characteristics of a contemporary control system?

Correct Answer
verified

Exam 9: Strategic Control and Corporate Governance

Rules and regulations are examples of ________ and ________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Contemporary strategic controls involve comparing actual performance to predetermined goals.

Correct AnswerverifiedShow Answer

Research has shown that executives who have large holdings of stock in their firm are more likely to have diversification strategies more consistent with shareholder interests,like increasing long-term returns.

Correct AnswerverifiedShow Answer

In principal-principal conflicts (conflicts between controlling shareholders and minority shareholders) ,the ownership (of equity) is

Correct AnswerverifiedShow Answer

In trying to assure that managerial actions lead to shareholder value maximization,a risk can come about if the market value of a firm becomes less than its book value.The risk is

Correct AnswerverifiedShow Answer

In order to have effective board operations,firms need to cultivate engaged and committed boards.

Correct AnswerverifiedShow Answer

Which of the following is not a reason analyst recommendations are often more optimistic than warranted by an objective analysis of the facts?

Correct AnswerverifiedShow Answer

Continuous monitoring,in the contemporary approach,is beneficial because

Correct AnswerverifiedShow Answer

Behavioral controls are aspects of strategic change that involve finding the appropriate ________ and ________ among the culture,rewards,and boundaries of the firm.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Effective short-term objectives should be ________ and ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Zappos and Amazon focus on customer service.What purpose does this serve in terms of attaining behavioral control?

Correct AnswerverifiedShow Answer

Contemporary approaches to strategic control rely primarily on

Correct AnswerverifiedShow Answer

Effectively implementing strategy requires manipulating three key control levers: culture,rewards,and boundaries.What are the compelling reasons for an increased emphasis on culture and rewards in a system of behavior controls?

Correct AnswerverifiedThere are two compelling reasons for an ...View AnswerShow Answer

In addition to traditional institutional investors,a growing set of activist investors aggressively pressure firm managers for major changes.These activist investors include individual investors,such as ________,and activist investor funds,such as ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Andy Grove,former CEO and cofounder of Intel,encouraged openness by not having many of the trappings of success.This is an example of evolving from boundaries to rewards and culture by

Correct AnswerverifiedShow Answer

Which of the following is not one of the characteristics of a contemporary control system?

Correct AnswerverifiedShow Answer

Rules and regulations are examples of and .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Behavioral controls are aspects of strategic change that involve finding the appropriate and among the culture,rewards,and boundaries of the firm.

Correct Answer
verified

Correct Answer
verified

Effective short-term objectives should be and .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
There are two compelling reasons for an ...
View Answer

In addition to traditional institutional investors,a growing set of activist investors aggressively pressure firm managers for major changes.These activist investors include individual investors,such as ,and activist investor funds,such as .

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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