Corporate Governance Practice Exam
Course Introduction
Corporate Governance explores the systems, principles, and processes by which companies are directed and controlled. The course examines the roles and responsibilities of the board of directors, executives, shareholders, and other key stakeholders, focusing on the frameworks that promote accountability, transparency, and ethical decision-making within organizations. Students will analyze regulatory requirements, best practices, and corporate governance codes in local and global contexts, and study real-world cases to understand how effective governance influences corporate performance, stakeholder trust, and long-term value creation.
Recommended Textbook Organization Theory and Design 2nd canadian Edition by Richard L. Daft
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Page 2
Chapter 1: Organizations and Organizational Theory
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Sample Questions
Q1) Which statement best describes organizational behaviour?
A) It is a micro approach to organizations, focusing on individuals
B) It focuses on the whole organization as a unit of analysis
C) It is an "umbrella" that encompasses the study of organizational theory.
D) It is a subset of organizational theory.
Answer: A
Q2) According to the textbook, what does the term contingency refer to?
A) Organizations should be structured loosely.
B) Management structure is determined by the era or times.
C) One thing depends on other things, such as structure depending on environment.
D) Designing and managing organizations on an impersonal, rational basis.
Answer: C
Q3) Discuss why the Hawthorne Studies are so important to today's organizations and their workers.
Answer: The Hawthorne Studies showed that the positive treatment of employees improved their morale and productivity. Therefore, organizations need to consider people, as well as structures and processes, when they make design choices.
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3
Chapter 2: Strategy, Organizational Design, and Effectiveness
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Sample Questions
Q1) What is the primary responsibility of top management?
A) to perform the organization's SWOT analysis
B) to determine goals, strategy, and design, in adaptation to the environment
C) to set a motivating culture for all employees
D) to formalize and centralize the firm
Answer: B
Q2) What is the specific overlap between effectiveness and efficiency?
Answer: Effectiveness, while a broad concept, must consider a range of variables at both the organizational and departmental levels. Efficiency looks at the use of organizational inputs or resources to produce output. The overlap lies in the organizational and departmental use of the resources.
Q3) The primary responsibility of top management is to determine an organization's goals, strategy, and design, therein adapting the organization to a changing environment.
A)True
B)False
Answer: True
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Page 4
Chapter 3: Fundamentals of Organizational Structure
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Sample Questions
Q1) If a company wishes to maintain its basic functional structure, but is having difficulty coordinating across departments because of growth, what should it do?
A) It should install horizontal linkages.
B) It should realize that the functional structure cannot work and replace it with a matrix structure.
C) It may find it necessary to abolish liaison roles.
D) It can profit most by adding more functional departments.
Answer: A
Q2) Which of the following is one of the benefits of the horizontal structure?
A) The process owner is responsible for coordinating the core process in its entirety.
B) Because team members become recognized experts in a single area, less cross-training that characterizes other organizational forms is needed
C) Boundaries between departments are clearly defined to ensure functional expertise.
D) The horizontal structure is easy to implement, even if the organization has been rooted in a strict vertical, hierarchical structure.
Answer: A
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Chapter 4: The External Environment
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Sample Questions
Q1) Once an organization relies on other organizations for valued resources, those other organizations can influence managerial decision making in the original organization.
A)True
B)False
Q2) Discuss organizational differentiation. How is integration connected to differentiation?
Q3) Which of the following includes those sectors that might not have a direct impact on the daily operations of a firm but will indirectly influence it?
A) the general environment
B) the international context
C) the task environment
D) the buffering roles
Q4) Boundary spanners can prevent the organization from stagnating by keeping top managers informed about environmental changes.
A)True
B)False
Q5) Why does environmental complexity lead to organizational complexity? Explain.
Q6) Explain the arguments for and against creating buffering roles.
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Chapter 5: Interorganizational Relationships
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Q1) The institutional perspective explains why organizational diversity continuously increases with the appearance of new organizations filling niches left open by established companies.
A)True
B)False
Q2) Which of the following is composed of norms and values from stakeholders?
A) the institutional environment
B) population ecology theory
C) the organizational ecosystem
D) institutional isomorphism
Q3) The technical dimension of an organization is governed by expectations from the external environment.
A)True
B)False
Q4) The population ecology model tells us that even institutionalized organizations like McDonald's are NOT permanent in the long run.
A)True
B)False
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Chapter 6: Designing Organizations for the International Environment
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Sample Questions
Q1) The global geographical structure divides the world into geographical regions, with each geographical division reporting to the CEO.
A)True
B)False
Q2) Describe the stages of international evolution in terms of their strategic orientation.
Q3) The product-based structure works best when a division handles products that are technologically similar and can be standardized for marketing around the world.
A)True
B)False
Q4) Which types of organizations operate with the entire world as their marketplace?
A) multidomestic firms
B) domestic organizations
C) governmental agencies
D) global companies
Q5) Refer to Case 6.0. Identify the strategy in the textbook that Ford appears to be adopting. Describe advantages and disadvantages of that strategy for Ford. Why do you think CEO Trotman moved to that strategy?
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Chapter 7: Manufacturing and Service Technologies
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Q1) Boundary roles are used extensively in manufacturing firms, but rarely used in service organizations.
A)True
B)False
Q2) Research suggests that FMS can become a competitive burden, rather than a competitive advantage, unless organizational structures and management processes are redesigned to take advantage of the new technology.
A)True
B)False
Q3) Using Woodward's findings, compare the structures that are appropriate for each of the technologies she identified. Use at least the following elements of structure: supervisor span of control, worker skill level, centralization, and number of management levels.
Q4) What is the purpose of the sociotechnical systems approach?
A) to apply the theory of job enlargement
B) to provide qualified management to an organization in a turbulent environment
C) to offer the most advanced information technology possible to maximize organizational competitiveness
D) to combine human needs with technical efficiency in job design
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Chapter 8: Information Technology and Control
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Sample Questions
Q1) Which of the following is one impact information technology has had on organizational design?
A) larger size
B) more decentralized organizational structures
C) technology as a substitute for professional staff, thereby decreasing the need for them
D) decreased levels of employee participation
Q2) Tacit knowledge is formal, systematic knowledge that can be written down and passed on to others.
A)True
B)False
Q3) Which of the following is an important aspect of an integrated enterprise?
A) Six Sigma
B) networking
C) supply-chain management
D) the intranet
Q4) Data and information are NOT synonymous terms.
A)True
B)False
Q5) What is a network structure? What are its characteristics?
Page 10
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Chapter 9: Organization Size, Life Cycle, and Decline
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Q1) Which crisis is associated with the collectivity stage of the organizational life cycle?
A) need for leadership
B) need for delegation with control
C) need to deal with too much red tape
D) need for revitalization
Q2) The big/small approach may be used to combine small units in order to gain advantages of efficiencies.
A)True
B)False
Q3) The life-cycle phenomenon is a powerful concept used for understanding problems facing organizations and how managers can respond in a positive way to move an organization to the next stage.
A)True
B)False
Q4) In the collectivity stage, departments are established along with a hierarchy of authority, job assignments, and a beginning division of labour.
A)True
B)False
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Chapter 10: Organizational Culture and Ethical Values
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Q1) In a bureaucratic culture, an important value is taking care of employees and making sure they have whatever they need to help them be satisfied as well as productive.
A)True
B)False
Q2) Why did Citigroup implement a statement of cultural and ethical values after being stung by a series of scandals?
A) A formal statement of the company's values relates to the unobservable but important organizational culture.
B) A formal statement of values can serve as a fundamental organizational document that defines what the organization stands for.
C) A formal statement addresses ethical values rather than specific behaviours.
D) A formal statement is often part of a larger mission statement and therefore is taken for granted.
Q3) Values-based leadership is best instituted throughout the management hierarchy through an authoritative directive.
A)True
B)False
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12
Chapter 11: Innovation and Change
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Sample Questions
Q1) Administrative innovation can be extremely difficult in organizations that have an organic technical core.
A)True
B)False
Q2) ABC Credit Union began offering a "Sweep Account" in which funds over $500 in a chequing account would be "swept" into a money-market, interest-bearing account until the chequing account reached $100, at which point funds from the money market account would be "swept" back into the chequing account. What type of change is this an example of?
A) product or service
B) radical
C) incremental
D) product improvement
Q3) Which of the following is best example of radical change?
A) organizational turnarounds and transformations
B) any series of continual progressive changes affecting one organizational part, and then another
C) implementation of sales teams in the marketing department
D) bringing new technology to product development
Q4) What are the barriers to change?
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Chapter 12: Decision-Making Processes
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Q1) The selection phase of the incremental model is very clear that managers must analyze and choose on the basis of objective criteria in order to avoid any future delay that would interrupt implementation.
A)True
B)False
Q2) Which phase in the incremental decision process involves the shaping of a solution to an identified problem?
A) development phase
B) selection phase
C) identification phase
D) implementation phase
Q3) Which step in the rational approach immediately follows developing alternative solutions?
A) evaluating alternatives
B) diagnosing the problem
C) implementing an alternative to test its viability
D) implementing the chosen alternative
Q4) Discuss the consequences of the garbage can decision process for organizational decision making.
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Chapter 13: Conflict, Power, and Politics
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Sample Questions
Q1) Legitimate power is the authority to punish or recommend punishment, whereas expert power derives from a person's greater skill or knowledge about the tasks being performed.
A)True
B)False
Q2) Which of the following denotes the ability of one person/department to influence other persons/departments to carry out orders or do something they would not otherwise have done?
A) cooperation
B) authority
C) power
D) personal position
Q3) Why do people have authority in an organization?
A) because of the positions they hold
B) because of skill and knowledge they possess
C) because of personal characteristics
D) because of resources they control
Q4) Describe the conditions under which a rational model of behaviour might work. How does the rational model compare to the political model?
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