GRB Exam 3 Practice Questions

Front

An “outside director” on a company’s board of directors:

Back

has valuable expertise, but limited vested interest (financial stake) in the firm before assuming the role

Front

According to agency theory, what is the primary concern of a board of directors? Options: To determine whether or not to pay dividends to stockholders, To act in the best interests of the corporation, To make decisions about how to run the day-to-day affairs of the business, To monitor the decisions made by managers on behalf of the shareholders of the firm, To bring valuable resources to the firm

Back

To monitor the decisions made by managers on behalf of the shareholders of the firm

Front

Which of the statements below best exemplifies a change that is needed for corporate governance to support a company’s CSR more effectively? Options: The Board of Directors provides oversight through committees dedicated to financial audits and risk assessment. The Board of Directors for Company X compensates the CEO based on quarterly return on investment (ROI) results. The Board of Directors regularly receives triple-bottom-line performance information. Each member of the Board of Directors for Company X limits his/her tenure to no more than 7 years on the Board.

Back

The Board of Directors regularly receives triple-bottom-line performance information.

Front

What is the practice called when a CEO also holds the chairperson position on the board?

Back

CEO duality

Front

Which of the following lists the four major components of the UN Global Compact? Human Rights, Labour, Environment, Civil Liberties, Human Rights, Labour, Environment, Anti-Corruption, Human Rights, Environment, Anti-Corruption, Fair Pay, Human Rights, Child Labour, Environment, Anti-Corruption

Back

Human Rights, Labour, Environment, Anti-Corruption

Front

Which of the following is not a reason why a small company like Casa Xavier might adopt the GRI standards?
- Using the GRI may help the company secure contracts with large multinational firms that use or require the standards.
- The GRI provides international certification that Casa Xavier is dedicated to responsible production.
- The information gathered and reported can provide insight to Casa Xavier into how to run the business more efficiently.
- The GRI formalizes the company’s reporting.

Back

The GRI provides international certification that Casa Xavier is dedicated to responsible production.

Front

Today's employees are looking for: competitive pay and benefits, opportunities for professional growth, meaningful work.

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all of the above.

Front

What are rights provided by law?

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Statutory rights

Front

The idea that the relationship between a worker and employer is voluntary and can be terminated at any time, by either party, is the

Back

employment-at-will doctrine.

Front

Which of the following is not a requirement of a due process system?
It must follow rules and not be arbitrary.
It must apply to all employees.
It must be perceived as equitable.

Back

It must be well documented.