Corporate Governance Test Bank
Course Introduction
Corporate Governance explores the systems, principles, and processes by which corporations are directed and controlled. The course examines the roles and responsibilities of key stakeholders including boards of directors, executives, shareholders, and regulatory agencies, highlighting their impact on organizational performance and accountability. Topics include ethical decision-making, internal controls, shareholder rights, disclosure requirements, and the frameworks that promote transparency and trust in business operations. Through case studies and real-world examples, students gain an understanding of how effective corporate governance can prevent corporate scandals and enhance long-term value for all stakeholders.
Recommended Textbook
Understanding Business Ethics 3rd Edition by
Peter A. Stanwick
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13 Chapters
687 Verified Questions
687 Flashcards
Source URL: https://quizplus.com/study-set/398
Page 2
Chapter 1: The Foundation of Ethical Thought
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53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/6959
Sample Questions
Q1) All of the following are deontological frameworks except A) Ethical egoism
B) Existentialism
C) Contractarianism
D) Kant's Ethics
Answer: A
Q2) Supporters of _______________ state that this theory is the only one that captures the essence of benevolent behavior.
A) Utilitarianism
B) Sidgwick's dualism
C) Ethical egoism
D) Kant's ethics
Answer: A
Q3) How is the price of a meal determined at a Panera Cares Café?
A) Customers decide how much to pay for their meal
B) Meal prices are determined based on the cost of meal preparations
C) Café managers set the prices of the meals each day based on ingredient costs
D) Top management at Panera set a standard price of meals for all café locations.
Answer: A
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Page 3
Chapter 2: The Evolving Complexities of Business Ethics
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49 Verified Questions
49 Flashcards
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Sample Questions
Q1) The discovery of ethics began with discussions initiated by all of the following individuals except
A) Socrates
B) Aristotle
C) Plato
D) Napoleon
Answer: D
Q2) In a short essay, define integrity, and explain the role of integrity in the corporation.
Answer: The underlying assumption of the role of employees within the organization is a deeply rooted level of organizational commitment. That commitment generates an attitude in which the employees can be passionate about their effort and the overall commitment of the firm. After they leave the firm, the employees want to believe that there is a legacy of their contribution to the success of the firm. It is this commitment, passion, and dedication that drive employees to a high level of integrity within their work setting. Integrity is based on employees' continuous efforts to balance their personal values with the requirements to perform their jobs effectively throughout their careers.
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Chapter 3: Stakeholders and Corporate Social Responsibility
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53 Verified Questions
53 Flashcards
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Sample Questions
Q1) Which coffee shop paid $1.26 per pound for fair trade coffee beans in the case?
A) Mountain People's Co-Op
B) Whole Foods
C) Costa Coffee
D) Starbucks
Answer: A
Q2) The CEO of FreeTrade USA is ____________ who stated that the program allows the farmers to deal directly with the wholesaler, eliminating up to five different middlemen that could include a local buyer, a miller, an exporter, a shipper, and an importer.
A) Paul Rice
B) Owen D. Young
C) Sandy Weil
D) A.A. Berle
Answer: A
Q3) The relationship between the firm and its suppliers is solely commercial and financially based.
A)True
B)False
Answer: False
Page 5
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Chapter 4: Ethics and Financial Reporting
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51 Verified Questions
51 Flashcards
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Sample Questions
Q1) In a short essay, list and discuss the three primary objectives of financial reporting.
Q2) Plausible deniability is based on the belief that additional commitment is needed for a course of action even if this is not the correct course of action.
A)True
B)False
Q3) Which of the following are not Section 404 internal controls ?
A) An internal code of ethics
B) Independent board members
C) Remuneration committees
D) Creation of processes for reporting concerns
Q4) ______________ is the purposeful intervention in the process of reporting income numbers with the objective of dampening the fluctuations of those numbers around their trend.
A) Stakeholder management
B) Income smoothing
C) Cookie jar accounting
D) Off-shore financing
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6
Chapter 5: Ethical Leadership and Corporate Governance
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53 Verified Questions
53 Flashcards
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Sample Questions
Q1) _______________ can be defined as the system that is used by firms to control and direct their operations and the operations of their representatives, the employees.
A) Corporate culture
B) Artifacts
C) Corporate governance
D) Ethical values
Q2) Transformational leaders create a long-term vision for the firm.
A)True
B)False
Q3) A(n) ______________ leader is a very dangerous position for a manager to establish with other employees within the firm because this leader would have destroyed all three critical traits of a moral person.
A) Unethical
B) Ethical
C) Hypocritical
D) Inconsistent
Q4) When the CEO is also the chairman of the board, it is called CEO duality.
A)True
B)False
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Chapter 6: Strategic Planning, Corporate Culture, and Corporate Compliance
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55 Verified Questions
55 Flashcards
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Sample Questions
Q1) Which of the following does not represent one of the three stages of Kurt Lewin's model of change?
A) Unfreezing
B) Moving
C) Refreezing
D) Confusion
Q2) Constance Bagley designed a _______________ process to help decision makers make the right decisions
A) Decision ladder
B) Decision tree
C) Three step
D) True false grid
Q3) Which is not a strategic ethical decision to build character?
A) Who am I?
B) Who are we?
C) Where are we going?
D) Who is the company?
Q4) In a short essay, set out the key steps that firms need to follow to evaluate their corporate culture to develop an effective integrity strategy.
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Chapter 7: Decision Making and Human Resource Issues
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) Influence is a component of the implementation of power in ethical decision making. Which of the following is not an ethical use of influence?
A) Negotiating in an ethical manner
B) Adjusting through mutual agreement the viewpoint of another
C) Misleading others about your future intentions
D) Using nonverbal methods to change the viewpoint through, for example, physical evidence
Q2) Which of the following components of moral intensity relates to the decision maker's perception of the probability that the act will take place and the probability that harm or benefit will occur consequently?
A) Social consensus
B) Magnitude of consequences
C) Probability of effect
D) Temporal immediacy
Q3) In a short essay, list and discuss the six stages in the moral development of an individual.
Q4) In a short essay, list and discuss the three critical individual variables that would affect how individuals approach resolving an ethical dilemma.
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9
Chapter 8: Ethics and the Environment
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53 Verified Questions
53 Flashcards
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Sample Questions
Q1) All of the following represent types of risk for a firm due to the impact of climate change EXCEPT:
A) regulatory risk
B) employee risk
C) physical
D) litigation risk
Q2) Research conducted by Stanwick and Stanwick found that firms in the "middle of the pack" financially had the highest levels of environmentally committment.
A)True
B)False
Q3) Which of the following types of risk is based on the premise that firms with high GHG emission levels will be threatened more frequently with lawsuits similar to those established in the tobacco, pharmaceutical and asbestos industries?
A) regulatory risk
B) supply chain risk
C) physical
D) litigation risk
Q4) In a short essay, explain the concept of the Tragedy of the Commons.
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Page 10
Chapter 9: Ethics and Information Technology
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53 Verified Questions
53 Flashcards
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Sample Questions
Q1) _____________ is the use of computer technology to commit terrorism crimes.
A) Virtualterrorism
B) Techterrorism
C) Cyberterrorism
D) Retroterrorism
Q2) ______ is software that can be loaded onto a computer so an outside party can monitor the computer operations without the consent of the computer user.
A) Hardware
B) Skyware
C) Spyware
D) Cyberware
Q3) The American Management Association/ePolicy Institute survey examined the relationship between ethics and technology. One finding stated that 45% of firms monitored the time spent and numbers called on the phone.
A)True
B)False
Q4) The FTC Safeguards Rule applies only to firms listed on the NYSE.
A)True
B)False
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Chapter 10: Ethics and Information Technology
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) The _______________ refers to the intrinsic benefits that boycotting can create for the individual consumer.
A) Desire to make a difference
B) Scope of self-enhancement
C) Counterarguments that inhibit boycotting
D) Cost to the boycotter of constrained consumption
Q2) ______________ are consumers who understand the issues related to the natural environment but are not willing to pay more for proactive environmental products.
A) Greenback greens
B) Sprouts
C) True blue greens
D) Basic browns
Q3) Which is not one of the financial costs of a recall?
A) Communication costs
B) Engineering costs
C) Marketing costs
D) Legal costs
Q4) In a short essay, list the seven steps to developing a customer relationship management model.
Page 12
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Chapter 11: Ethical Issues in the Developing World
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55 Verified Questions
55 Flashcards
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Sample Questions
Q1) An example of a social engineer entrepreneur is Jacqualine Novogratz who established the Acumen Fund in 2001 which the mission to use entrepreneurial approaches to solve global poverty problems.
A)True
B)False
Q2) Elkington and Hartigan identified 10 characteristics of successful social entrepreneurs. Which of the following is not one?
A) Using innovation, resourcefulness, and opportunity
B) Not wait until all resources are available to capitalize on the opportunity
C) Be a good teacher
D) Concentrate on rates of return
Q3) The European Union (EU) is demanding that all EU countries must have _______ of their transportation fuel come from renewable sources such as biofuel or wind power by 2020.
A) 10%
B) 15%
C) 73%
D) 98%
Q4) In a short essay, list and discuss the root causes of hunger.
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Chapter 12: Establishing a Code of Ethics and Ethical Guidelines
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53 Flashcards
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Sample Questions
Q1) MetLife has a comprehensive code of business conduct and ethics. ______ are responsible for "reading, understanding, and adhering" to the code.
A) The Board of Directors
B) Stakeholders
C) All employees
D) Suppliers
Q2) In a short essay, list and discuss the four types of statements that a corporation may adopt to communicate the corporation's view of the subject of ethics.
Q3) Waddock and Bodwell developed the Total Responsibility Management concept based on Deming's TQM. Which of the following is not one of the elements?
A) Inspiration process
B) Integration process
C) Involvement process
D) Innovation and improvement process
Q4) In a short essay, list six components of a code of conduct for financial institutions according to the publication "Corporate Codes of Conduct: Guidance to Implementing an Effective Ethics Program."
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Chapter 13: Evaluating Corporate Ethics
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55 Verified Questions
55 Flashcards
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Sample Questions
Q1) An ethics training program that just focuses on a masculine-based view of the firm will not give due consideration to which of the following?
A) Strong control mechanisms
B) Individual punishment sanctions
C) Comprehensive ethics training
D) Nonpunitive ethics programs
Q2) According to the research study conducted by PricewaterhouseCoopers 2014 Global Economic Crime Survey, when fraud was committed by someone external to the company ______% were dismissed by their employer.
A) 17%
B) 5%
C) 23%
D) 79%
Q3) When establishing a global ethics training program, Jackson recommends all of the following elements, except
A) Ensure morally sensitive cultural education
B) Provide education on international human rights
C) Implement a program based on the company's home ethics and culture
D) Consider global cultural dimensions
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Page 15