Chapter 13 Self-Quiz

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. Nader, Green, and Seligman argue that mismanagement of a corporation often occurs because of a failure to:

Be accountable to shareholders correct incorrect

Account for market factors correct incorrect

Anticipate technological changes correct incorrect

Restrain the power of senior executives correct incorrect

Be competitive economically correct incorrect

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. In his advice to auditors, Warren Buffett asks whether the auditor would have received the information essential to understanding the company's financial performance during the reporting period if he were an:

Employee correct incorrect

Accountant correct incorrect

Investor correct incorrect

Auditor correct incorrect

Attorney correct incorrect

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. The board of directors is historically supposed to do what?

Report to the public correct incorrect

Establish procedures to help monitoring correct incorrect

Approve or veto important executive management decisions correct incorrect

Hire and fire CEOs correct incorrect

All of the above correct incorrect

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. There are how many types of decisions in which Nader, Green, and Seligman believe a board needs to exceed its limited review role?

None correct incorrect

One correct incorrect

Two correct incorrect

Three correct incorrect

Seven correct incorrect

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. Shapiro points out that there are critics of corporate structure who:

Believe that corporations need a complete structural "overhaul" to become accountable correct incorrect

Believe that employees need to take a more proactive role in assessing the needs of customers correct incorrect

Believe that customers should have a “say” in corporate decisions correct incorrect

All of the above correct incorrect

None of the above correct incorrect

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. Shapiro's overall point is that:

Corporate structure needs a drastic overhaul. correct incorrect

Corporate governance is worse than it has ever been. correct incorrect

Corporations are more accountable than in the past, so no changes are needed. correct incorrect

Corporations are more accountable than in the past, but more improvement is still needed. correct incorrect

CEO should hand over most of their power to a board of directors. correct incorrect

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. To nationalize the corporation is one way in which some critics would like to see corporations:

Reformed correct incorrect

Brought to an end correct incorrect

Restored to their former position correct incorrect

Made accountable to employees correct incorrect

Made accountable to customers correct incorrect

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. What is/are the sign(s) of CEO disengagement as outlined by Reisner?

Posture correct incorrect

An attitude of defeat correct incorrect

Lack of visibility correct incorrect

All of the above correct incorrect

None of the above correct incorrect

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. The monotonic view emphasizes maximization of __________ wealth.

the public's correct incorrect

government's correct incorrect

shareholders' correct incorrect

the CEOs correct incorrect

None of the above correct incorrect

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. According to Dunfee, surveys of senior managers found that:

Most of them were ethical. correct incorrect

Most of them claimed to be ethical but were not. correct incorrect

Most did not care about morality. correct incorrect

Most supported a monotonic approach. correct incorrect

Most supported a pluralist approach. correct incorrect

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. Dunfee's first principle for managers says that there is a presumption that corporate actions should be undertaken to:

Satisfy the needs of all stakeholders correct incorrect

Balance the needs of all stakeholders as much as possible correct incorrect

Create the greatest good correct incorrect

Maximize shareholder wealth correct incorrect

Both (b) and (d) correct incorrect

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. What is a "hypernorm," according to Dunfee?

A universal principle used to judge lesser moral principles correct incorrect

A moral principle that is overly rigid, self-righteous, and moralistic correct incorrect

A principle used to justify actions that are really motivated by profit correct incorrect

A local moral principle that may not be universally accepted correct incorrect

A principle emerging from marketplace morality correct incorrect

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. McCall notes that most approaches to morality that stress individual rights have adherents who believe what?

That rights are the only important thing needed to assess questions of ethics correct incorrect

That traditional values supersede new values correct incorrect

That individual persons are valuable correct incorrect

That rights are valuable correct incorrect

None of the above correct incorrect

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. An increase in self-respect and a decrease in stress can both be results of greater:

Responsibility correct incorrect

Wages correct incorrect

Autonomy correct incorrect

Achievements correct incorrect

Security correct incorrect

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. Jackson warns that if confidence in Chinese corporate governance falls, investors may one day consider investing in Chinese stocks to be just as risky as investing in countries like

Colombia correct incorrect

Russia correct incorrect

Iraq correct incorrect

Germany correct incorrect

Saudi Arabia correct incorrect

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. Nader and his co-authors support the idea that each member of a board of directors should have a specific constituency, like employee welfare or consumer protection.

TRUE correct incorrect

FALSE correct incorrect

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. One way that critics propose to reform corporate structure is to make it communistic in character.

TRUE correct incorrect

FALSE correct incorrect

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. The board of directors should be the ones to hold executive management accountable.

TRUE correct incorrect

FALSE correct incorrect

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. Some corporate critics believe that the way to reform corporations is by changing the election procedures of the board members.

TRUE correct incorrect

FALSE correct incorrect

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. Shapiro points out that to be effective, directors need to be disinterested in their jobs.

TRUE correct incorrect

FALSE correct incorrect

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. Sometimes CEOs want large compensation packages not out of greed, but in order to feel appreciated, engaged, and successful.

TRUE correct incorrect

FALSE correct incorrect

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. Moral beliefs and desires don't affect people's economic behavior in the market.

TRUE correct incorrect

FALSE correct incorrect

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. One of Kant's principles is to treat humanity as an end in itself, not merely as a means.

TRUE correct incorrect

FALSE correct incorrect

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. Shapiro believes that a board of directors should establish standards for judging the management.

TRUE correct incorrect

FALSE correct incorrect

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. Accepting blame is a sign that a CEO is losing confidence or disengaging.

TRUE correct incorrect

FALSE correct incorrect

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. If confidence in Chinese corporate governance continues to fall, the only risk is that foreign investors will lose trust in such corporations.

TRUE correct incorrect

FALSE correct incorrect