GB Quiz 4 Ch 14 - Ch 17

1. 1. Which is not true about CSR?

• a. Some CSR policies may reduce the firm’s value.

• b. CSR policies may not pay off if common.

• c. CSR that is embedded in people is easier to imitate.

• d. Organization: a firm needs to tie together CSR activities.

• e. It is difficult to prove a link between CSR and economic performance.

2. An example of a primary stakeholder group is:

• a. Media.

• b. Social activists.

• c. Environmental groups.

• d. Employees.

• e. Fair labor practice groups.

3. Boards of directors perform all of the following except:

• a. Control.

• b. Service.

• c. Resource acquisition functions.

• d. A through C above.

• e. Day to day operations.

4. Agency theory assumes that managers:

• a. Have a responsibility to the owners.

• b. Are agents who are opportunistic and engage in self-serving activities.

• c. A and B above.

• d. Can be left to their own devices.

• e. Are effective steward of the owners’ interests.

5. Regarding to the human resource managment (HRM):

• a. It includes staffing, training, compensation and performance appraisal, and labor relations.

• b. Parent-country national (PCN) denotes that individual who is from neither the parent country nor the host country of the MNE.

• c. Host-country national (HCN) indicates that individual who comes from the parent country of the MNE and works at its local subsidiary.

• d. B and C above.

• e. None of the above.

6. Expatriate failure can be defined as:

• a. Premature return

• b. Unmet business objectives

• c. Unfulfilled career-development objectives

• d. All of the above.

• e. None of the above.

7. which of the following is not correct?

• a. About expropriation, it is about the activities that enrich controlling shareholders at the expense of minority shareholders.

• b. Tunneling means that a form of corporate theft that diverts resources from the firm for personal or family use.

• c. The separation of ownership and control means that publicly traded corporations owned by numerous small shareholders but none with a dominant level of control.

• d. All of the above.

• e. None of the above.

8. About the corporate governance:

• a. The tripod of corporate governance includes manager, board of directors and stakeholders.

• b. Top management team (TMT) means that the team consisting of the highest level of executives of a firm led by

  the CEO.

• c. Agency relationship concerns the relationship between principals and agents.

• d. A and C above.

• e. B and C above.

9. Agency theory assumes that managers:

• a. Have a responsibility to the owners.

• b. Are agents who are opportunistic and engage in self-serving activities.

• c. Can be left to their own devices.

• d. Are effective steward of the owners’ interests.

• e. A and B above.

10. The defense of private equity includes all of the following points except:

• a. While private equity results in job cuts, the same might happen if targets were acquired by public firms.

• b. It would not be rational for private buyers to destroy their prize therefore they attempt to avoid doing that.

• c. Their record as corporate citizens is no more barbaric than that of public firms.

• d. They point to a Texas utility in which owners paid shareholders a 25% premium, gave retail customers a 10% price cut, and dropped plans to build eight dirty coal-fired power plants—hailed by environmentalists as a major victory.

• e. The actions of U.S. private equity firms have enhanced the image of the U.S. and capitalism around the world.