Q&A Hero

Q: Which of the following does not represent the media as a powerful secondary stakeholder? A. Newspapers B. Television C. The internet D. The government E. All of the above are true

Q: Which of the following is NOT a reason for economic regulation? A. To counter negative aspects of the market B. To tackle market failures such as when firms have monopolistic powers C. The 1960s saw a severe decline in economic regulations D. Economic regulations are aimed at improving the lives of individuals in society E. All of the above are true

Q: Which of the following are examples of corporate public activity? A. Lobbying B. Campaign contributions C. Operation of a government relations office D. All of the above E. None of the above

Q: _______ regulation is focused on correcting problems associated with the proper functioning of the market. A. Social B. Economic C. Restorative D. Secondary E. Primary

Q: Which of the following is NOT a social goal of social regulation? A. Protection of consumers B. Providing employees with a safe and healthy work environment C. Providing workers with equal opportunity at work D. Providing companies with a way to maximize profits E. All of the above are true

Q: _______ regulations are aimed at improving the lives of individuals in society. A. Social B. Economic C. Physical D. Monetary E. Financial

Q: What are the main goals of the Sarbanes-Oxley Act? A. To improve financial reporting B. To restore investor confidence C. To ensure that accounting practices were being rigorously followed D. All of the above E. None of the above

Q: What regulation was passed in 2002 as a result of the accounting scandals at companies such as Enron and WorldCom? A. The Sarbanes-Oxley Act B. The Smith-Cooper Act C. The Accounting Regulation Act D. The Foreign Corrupt Practices Act E. None of the above

Q: Which of the following is NOT true of registration of property? A. Registration of property allows a company to use such asset as guarantee for loans B. Registration of property allows firms to rightfully own property C. Formal property ownership allows company to use such assest as guarantee for other financial funds D. Registration of property is not critical for women starting their own business E. All of the above are true

Q: The time it takes to resolve a contract dispute, the number of procedures needed to file suits are both indicators of which of the following aspect of the World Bank's Doing Business project? A. Registration of property B. Full disclosure C. Protection of investors D. Ethical purchasing E. Enforcement of contract

Q: The full sequence of procedures necessary for a business to purchase property from another business and transfer the title to the buyers name is referring to what? A. Registration of property B. Full disclosure C. Ethical purchasing D. Business to Business E. Enforcement of contract

Q: The government is one of the most important __________ stakeholders. A. Primary B. Secondary C. Silent D. Principal E. Arbitrary

Q: Governments are considered as regulative institutions that can constrain and regularize behaviors and actions through its: A. Capacity to establish rules B. Capacity to inspect and review conformity C. Capacity to manipulate consequences to reinforce behaviors D. All of the above E. None of the above

Q: What are NGOs? Discuss some of the key ways NGOs can influence companies.

Q: What is the media? Discuss the three key aspects of media analysis.

Q: How can the government influence companies? Why is such influence important?

Q: What is government regulation? Discuss two key elements of the World Bank Doing Business project in the context of government regulation.

Q: What are secondary stakeholders? Briefly discuss two important secondary stakeholders and their effect on companies.

Q: Discuss how national culture dimensions such as uncertainty avoidance and masculinity affect corporate governance issues such as the size of the board of directors and the percentage of outsiders on board of directors.

Q: What is ownership concentration? Briefly discuss the three forms of ownership concentration and the implications for companies.

Q: What functions do board of directors play? Discuss some of the key aspects of a board of directors.

Q: What is corporate governance? Briefly discuss two forms of corporate governance.

Q: What is agency theory? Discuss moral hazard and adverse selection in the context of agency theory.

Q: Which of the following are considered executive compensation? A. Salary B. Bonus C. Stock option D. Additional perks and benefits E. All of the above

Q: Which of the following types of ownership demonstrates significant government ownership: A. State ownership B. State blockholder C. Family blockholder D. Corporate blockholder E. None of the above

Q: Which of the following are disadvantages of a big board of directors? A. More likely to engage in social loafing B. Higher levels of conflict C. Increase difficulty to communicate D. All of the above E. None of the above

Q: Which of the following are benefits of increasing diversity by adding more women to the board of directors for public companies? A. Women tend to bring richer ideas to discussions B. Women encourage and more innovative management C. Women are more likley to carefully scrutinize management actions D. Women bring divergent experiences that help better understand different consumers E. All of the above

Q: Which of the following are reasons for board independence? A. They are more likely to monitor management B. They are more likley to represent shareholder interests C. They are less likely to be connected with the current firm's top management D. All of the above E. None of the Above

Q: Which of the following is NOT TRUE regarding countries with high masculinity? A. Have higher percentage of outside directors B. Have a consolidated CEO and chairperson position C. Have a larger board of directors D. Reflects the aggresiveness and ambition inherent in such countries E. Have smaller board of directors

Q: Which of the following is not a shareholder right discussed as part of the future of corporate governance? A. Shareholders have the right to purchase shares B. Shareholders have the right to participate in key decisions related to new strategic directions of the company C. Shareholders have the right to use the assets of a company D. Shareholders have the right to nominate and elect board members E. All of the above are shareholder rights

Q: Research shows that countries that are more individualistic tend to: A. Have board of directors with a higher percentage of outside directors B. Have the CEO also act as chairperson of the board of directors C. Have a larger percentage of outsiders on the board of directors D. All of the above E. None of the above

Q: Which of the following is true regarding countries high in uncertainty avoidance? A. Have larger boards B. They tend to have boards where the CEO also acts as the chairperson of the board C. More outsiders on the board provide the company with added expertise and capabilities to reduce risks and ambiguities. D. All of the above E. None of the above are true

Q: While business angels tend to rely on informal monitoring methods, A. They are linked to having more outsiders on the board of directors. B. Venture capitalists emphasize more formal contractual methods of monitoring C. Venture capitalists dont rely on monitoring methods D. None of the above E. All of the above

Q: Business angels: A. Venture capitalists who rely on informal monitoring methods B. Do not invest their own money in the company C. Tend to know the entrepreneur personally D. Are more likely to be impatient investors who have a specific timeline determining when to take their investments out of a company E. None of the above

Q: Which of the following is FALSE regarding private equity? A. Includes business angel and venture capital B. It refers to the various forms of private funding that are available to companies that are not necessarily publicly traded C. The forms vary greatly depending on the stages the company is at. D. May take the form of family blockholder E. All of the above are true

Q: A third form of blockholder ownership is _____________. A. It is another form of firm ownership used for corporate governance B. Local ownership C. State ownership D. None of the above E. All of the above

Q: Which of the following is NOT a corporate governance mechanism? A. Ownership concentration B. Executive Compensation C. Dividend D. Board of directors E. All of the above

Q: Which of the following is true regarding the family blockholder? A. The major challenge with regards to family ownership is the protection of majority shareholders. B. Many European nations see a more dominant form of family ownership C. When compared to the U.S., Germany and Italy are less likely to have family ownership D. Both a. and b. E. A, B and C

Q: Which of the following are advantages of having a large board of directors? A. Necessary to understand the industry the company is operating to have the ability to make decisions of strategic importance B. Greater external linkages C. Less moral hazard D. Less adverse selection E. None of the above

Q: Stock options are: A. A popular form of stock ownership B. Stocks awarded to the CEO who does not have the ability to choose whether or not to sell the stock at a future date. C. Awarded to the CEO and expire if not immediately exercised. D. Usually exercised when the exercise price exceeds the market price. E. Stocks that CEO's can sell at a future date

Q: Which of the following is NOT a critical aspect of the board of directors? A. Board independence B. Expertise C. Size D. Seniority E. All of the above

Q: Blockholders are those shareholders that have more than ____ equity stake in a company. A. Stocks awarded to the CEO who then has the ability to sell the stock at a future date. B. 0.5 C. 0.05 D. 0.2 E. 1

Q: A critical issue in board composition is: A. The presence (or absence) of diversity B. Board independence C. Size D. All of the above E. None of the above

Q: Which of the following does not represent a form of blockholders? A. Corporate blockholder B. Family blockholder C. State blockholder D. State ownership E. Private equity

Q: Which of the following is true regarding the Board of Directors? A. They are not a primary mechanism to monitor and control the agency problem B. They have a duty of loyalty to their shareholders C. They put their own interests ahead of the shareholders D. They cannot control managers E. None of the above

Q: Corporate governance refers to the: A. Conflict between managers and shareholders B. System that controls and directs top managements actions only C. System that controls and directs companies and top managements actions D. Political alliance between corporations and the government E. None of the above

Q: The basic premise of agency theory is that A. Shareholders and managers have similar interests that need to be managed B. Managers always work in the interest of shareholders C. Shareholders cannot control top managers D. There is no conflict between shareholders and managers E. The interests of shareholders may not necessarily coincide with the interests of top managers

Q: Moral hazard refers to A. The legal entity that serves as a nexus for a set of contract among disparate individuals B. Adverse selection C. Misrepresentation by the CEO of his/her ability to do the work he/she is being paid for D. One of the problems top managers face when they deal with shareholders E. The ability of top managers to misuse company resources for their own interests

Q: Adverse selection is: A. The misrepresentation by the CEO of his/her ability to do the work that he/she is being paid for. B. A problem whereby the top management does not put in the right effort C. A problem whereby the top management misuses the company resources for their own interests D. All of the above E. None of the above

Q: Large shareholders are: A. Individual shareholders owning more than a 20% equity stake in a firm B. Individual shareholders owning more than a 50% equity stake in a firm C. Typically grouped as blockholders and institutional shareholders. D. All of the above E. None of the above

Q: Which of the following is NOT true regarding individual shareholders? A. They include regular persons buying and selling shares of any company B. Such transactions are usually done through a stockbroker C. The transactions are typically held in brokerage accounts D. They are typically grouped as blockholders and institutional shareholders E. None of the above

Q: Which of the following is true regarding shareholders? A. They invest their money in businesses hoping for a return on their investment B. They are legal owners of business corporations C. There are three main types of shareholders: individual, large and institutional shareholders D. A and B E. A, B and C

Q: What is consumer privacy? Why is consumer privacy important?

Q: Compare and contrast the main perspectives on product liability.

Q: What is promotion? What are some of the main ethical issues in promotion? Discuss some of the major techniques of deceptive advertising.

Q: Compare and contrast price gouging, predatory pricing, price discrimination, and bait-and-switch.

Q: Why does pricing have many ethical issues? Discuss some of the key pricing issues with ethical implications.

Q: In contract view, the contract implies certain moral duties for the seller which DOES NOT include: A. Duty to coerce B. Duty to comply with the terms of the contract. C. Duty not to misrepresent the product in any way D. Duty to disclosure the nature of the product E. None of the above

Q: In contract view, the explicit part of the contract relates to: A. The consumers expectations regarding relevance, maintainability, life, and product safety B. The risk associated with using the product, the ease of keeping the product working, the probability that the product will function as expected, the expectations regarding the service life of the product C. Whether the product is fit for sale and is of acceptable quality for ordinary use. D. All of the above E. None of the above

Q: Strict liability theory argues that A. The relationship between the manufacturer and a consumer is based on a contract B. Addresses the fact that sellers and buyers may not have the same knowledge and expertise regarding products C. The contract has both explicit and implied claims about the product D. Buyers have responsibility of inspecting products before buying them E. If a product injures a user because it was defective, the manufacturer is responsible to compensate the user

Q: This addresses the weaknesses of the buyer beware approach by accepting that sellers and buyers do not have equality in knowledge and expertise regarding products A. Due care theory B. Strict liability theory C. Contractual view theory D. All of the above E. None of the above

Q: If a product injures a user because it was defective, the manufacturer is responsible to compensate the user. This is an example of: A. Due care theory B. Strict liability theory C. Contractual view theory D. Predatory pricing E. Price gouging

Q: There are several perspectives regarding if or to what extent companies should companies assume liability for harm caused by the products they produce. These include: A. The buyer beware view B. Contractual theory C. Due care D. All of the above E. None of the above

Q: The statement that BMW "is the ultimate driving machine" is an example of A. Concealing facts B. Ambiguity in advertisements C. Predatory pricing D. Points of sale displays E. Exaggeration

Q: These advertisements often begin with truthful statements regarding the positive attributes of a product: A. Exaggeration B. Ambiguity in advertisements C. Concealing facts D. Misleading ads E. Price gouging

Q: In______ the wording is often constructed in a way that the consumer will be erroneous conclusions about the nature of the product. A. Exaggeration B. Ambiguity in advertisements C. Concealing facts D. Misleading ads E. None of the above

Q: Promotion involves an array of tools including: A. Sponsorships B. Coupons C. Point of sale displays D. All of the above E. None of the above

Q: Horizontal price fixing is A. When a company lowers its price so far below competitors that it drives out competitors B. When different groups are charged different prices C. When sellers agree to a price above what it would be in a competitive market D. When sellers force retailers to sell at specific prices E. None of the above

Q: This is a sales tactic where a product is advertised at a low price but when the consumer comes in he or she finds that the product is sold out (often there was only one in the store) or is pressured by sales people to look at higher priced versions of the product A. Price discrimination B. Failure to disclose the full price C. Bait-and-switch D. Price gouging E. None of the above

Q: This often occurs when listed prices do not include other fees or charges that the consumer will have to pay A. Price discrimination B. Predatory pricing C. Bait-and-switch D. Price gouging E. Failure to disclose full price

Q: This occurs when different groups are changed different prices A. Price discrimination B. Failure to disclose the full price C. Bait-and-switch D. Price gouging E. Vertical price fixing

Q: Bait-and-switch occurs when A. Sellers take advantage of situations like national disasters or shortages to raises prices during that situation B. A company lowers it prices so far below competitors that it drives the competitors out of the market C. Sellers force the retailers to sell their products to consumers at specific prices D. When different groups are changed different prices E. None of the above

Q: This has the effect of creating a monopoly effect when sellers agree to sell at one price that is often above what they would have to do in a competitive market A. Predatory pricing B. Horizontal price fixing C. Price gouging D. Vertical Price Fixing E. All of the above

Q: This occurs when sellers force the retailers to sell their products to consumers at specific prices A. Predatory pricing B. Horizontal price fixing C. Product D. Vertical Price Fixing E. All of the above

Q: This occurs when a company lowers it prices so far below competitors that it drives the competitors out of the market A. Predatory pricing B. Horizontal price fixing C. Price gouging D. Vertical Price Fixing E. None of the above

Q: This occurs when sellers take advantage of situations like national disasters or shortages to raises prices during that situation A. Predatory pricing B. Horizontal price fixing C. Price gouging D. Vertical Price Fixing E. Promotion

Q: Criticism is typically directed towards casinos, tobacco, and low mileage SUVs because they do not satisfy legitimate needs but just customer wants and have questionable value to the consumer. This illustrate ethical issues related to which of the 4PS: A. Place B. Product C. Price gouging D. Price E. Marketing

Q: For example, companies may sell directly to the end users or use distributors to get their product to the users, illustrate which of the 4Ps A. Place B. Product C. Promotion D. Price E. Price gouging

Q: .Includes the tools used by marketers to make potential customers aware of the companys products or services and the benefits to the customers of buying these products or services: A. Place B. Product C. Promotion D. Price E. Marketing

Q: In the marketing mix, th process of setting the amounts for the products/services is A. Place B. Product C. Marketing D. Price E. All of the above