week- 8 quiz - Bus 451 berkeley
shahimermaid
week-8.docxQuestion 1
· _______________ is a relationship among stakeholders that is used to determine and control the direction and performance of organizations.
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· Corporate governance |
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· Shareholder value |
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· Agency Relationship |
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· Managerial opportunism |
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10 points
Question 2
· _______________ is the seeking of self-interest with guile.
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· Corporate governance |
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· Shareholder value |
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· Agency Relationship |
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· Managerial opportunism |
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10 points
Question 3
· An agency relationship exists when one party delegates:
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· Decision making responsibility to a second party. |
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· Financial responsibility to employees. |
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· Strategy implementation actions to functional managers. |
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· Ownership of a company to a second party. |
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10 points
Question 4
· The sum of incentive costs, monitoring costs, enforcement costs, and individual financial losses incurred by principals, because governance mechanisms cannot guarantee total compliance by the agent is known as:
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· Governance costs |
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· Agency costs |
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· Due diligence costs |
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· Operating costs |
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10 points
Question 5
· _____________ have a fiduciary duty to shareholder to monitor management.
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· Government auditors. |
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· The firm’s top managers. |
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· The board of directors |
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· None of the above |
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10 points
Question 6
· A ___________ provides for payment of up to three years’ salary to a CEO if his/her firm is taken over.
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· golden parachute |
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· white knight |
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· poison pill |
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· silver handshake |
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10 points
Question 7
· Preferred stock in the merged firm offered to shareholders at a highly attractive rate of exchange is known as:
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· golden parachute |
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· white knight |
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· poison pill |
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· silver handshake |
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10 points
Question 8
· Generally, a board member who provides independent counsel to the firm and may hold top-level managerial position in another company is classified as a (an) ____ director.
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· lead independent |
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· inside |
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· related |
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· outside |
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10 points
Question 9
· Japanese keiretsu are:
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· Management structures related to total quality management systems. |
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· Company unions which are a type of governance system. |
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· Consortia of Japanese banks. |
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· A system of cross-shareholding among firms. |
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10 points
Question 10
· Institutional owners are
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· shareholders in the large institutional firms listed on the New York Stock Exchange. |
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· banks and other lending institutions that have provided major financing to the firm. |
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· large block shareholders such as mutual funds and pension funds. |
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· prevented by the Sarbanes-Oxley Act from owning more than 50% of the stock of any one firm. |
