WorksheetsOwnership + Control (Business A2)
Total questions: 18
Worksheet time: 2hrs 30mins
What occurs when the owners of a business do not control the day-to-day decisions being made?
Divorce between Ownership and Control
Corporate Governance
Strategic Drift
Emergent Strategy
In what scenario is there NO divorce between ownership and control?
Sole proprietor
Public company
Corporation
Tesla
Who is ALWAYS an example of ownership?
Shareholders
CEO
Board of Directors
Managers
Who is NOT an example of control?
CEO
Board of Directors
Managers
Stock Trader
True or False. Ownership aims are dividends, share price, and strong returns.
True
False
True or False. Ownership aims are always equal to manager aims.
True
False
Fill in the Blank. Divorce between Ownership and Control occurs when the owners of a business __________ the day-to-day decisions being made
Do not control
Control
Always control
Manage
Select all the ways of aligning ownership and control.
Financial rewards and incentives
Corporate governance
Company legislation
Fill in the blank. A financial incentive to align ownership and control is to make ______ part of a manager's reward package.
Shares
High salary
Prestige
Bonuses
What refers to the systems and processes that are in place to monitor and control how a business is run?
Corporate Governance
Strategic Plan
Business Plan
Emergent Strategy
Divorce between Ownership and Control
Select all that is true of Board of Directors
Responsible for Corporate Governance
Legally responsible
Appointed by shareholders
Supervises the management of the business
True or False. It is best practice for Corporate Governance that the CEO is the same as the Chairperson.
True
False
Select all the best practices for non-executive directors.
Boards should have at least 3
Should be part of Audit committee
Should be an "Outside Eye"
2 should have no financial or personal ties to company
Have shares in the company
Fill in the blank. Corporate Governance is the ___________ of the Board of Directors
Responsibility
Privilege
Liability
Reward
What is a difficulty of the Divorce of Ownership and Control?
Managers pursue own interests instead of owners' interests
Managers pursue rising share prices
Managers pursue dividends
Managers solely pursue owners' interests
Select all the likely goals of an activist shareholder
Increase of shareholder value through changes in dividend decisions
Plans for cost cutting or investment projects
Disinvestment from particular countries with a poor human rights record
Bonuses and prestige for Board of Directors
Fill in the blank with best option. Activist shareholders look to put _________ on existing management or force through changes to management boards.
Pressure
Assets
Debt
Insiders
True or False. Elliott Management is an example of an activist shareholder.
True
False
