Chapter 2: Corporate Governance

Society increasingly expects corporate boards to balance the economic goal of profitability with the social needs of society.

• True

• False

Transformational leaders transform their organizations from market leaders in one industry to market leadership in another.

• True

• False

What is the primary goal of succession planning in a company?

• To increase short-term profits

• To ensure there are qualified individuals ready to take over leadership roles

• To reduce employee training costs

• To promote external hiring only

Which of the following is a key focus of sustainability for companies like Genting Group?

• Maximizing short-term gains

• Following environmental protection standards and supporting community development

• Expanding operations without regard to environmental impact

• Reducing employee benefits

Transparency in corporate governance means keeping important information secret from stakeholders.

• True

• False

Why is diverse board composition important for corporate governance?

• It ensures all board members think the same way.

• It allows for a variety of opinions and perspectives to solve challenges.

• It limits the number of people who can make decisions.

• It reduces the accountability of board members.

Evaluating the board regularly helps track progress and identify areas for improvement.

• True

• False

The board of a large, innovative tech company works with the CEO to not only oversee current performance but also to drive new initiatives, like entering new markets or developing new products. The board’s input is instrumental in shaping the future direction of the company. What type of continuum of the board?

• Nominal Participation

• Catalyst

• Active Participation

• Phantom

What year was the Sarbanes Oxley Act introduced?

• 2010

• 2004

• 2000

• 2002

Co-determination is the Board, CEO, and top management working and discussing together regarding decision-making of the company

• True

• False