Question 1

In firms with differentiation strategies, the culture should foster _____ levels of interdependence and rewards should be based primarily on _____ measures of output.

Accepted Answer

A)   low; financial
B)   low; behavioural
C)   high; financial
D)   high; behaviouralE) A) and D)
F) B) and C)

Question 2

Behavioural control systems use culture, rewards, and boundaries in a balanced and consistent way to achieve results.

Accepted Answer

A) True 
 B)False

Question 3

In firms with related diversification strategies, the culture should foster _____ levels of interdependence and rewards should be based primarily on _____ measures of output.

Accepted Answer

A)   low; financial
B)   low; behavioural
C)   high; financial
D)   high; behaviouralE) None of the above
F) A) and B) D

Question 4

Public companies are required by law to disclose information regarding executive compensation packages.

Accepted Answer

A) True 
 B)False

Question 5

The U.S. Congress introduced the Sarbanes-Oxley Act in 2002 to ensure better governance of public corporations-similar provisions have NOT been put in place in Canada.

Accepted Answer

A) True 
 B)False

Question 6

Continuous monitoring enhances an organization's ability to respond with speed and flexibility.

Accepted Answer

A) True 
 B)False

Question 7

What are the "traditional" approaches to strategic control?

Accepted Answer

Traditional control mechanisms rely on m...

Question 8

The causes of counterproductive behaviour in organizations include

Accepted Answer

A)   lack of a clear understanding of organizational goals and objectives.
B)   motivated self-interest.
C)   outright malfeasance.
D)   all the choices are correctE) A) and D)
F) All of the above

Question 9

By takeover constraint, we mean

Accepted Answer

A)   constraints placed by the firm on raiders who want to takeover the firm.
B)   legal constraints that limit the ability of the raiders to acquire a firm.
C)   provisions in the charter of a company that prevents it from attempting a takeover of other companies.
D)   the risk of being acquired by a hostile raider.E) B) and C)
F) A) and D)

Question 10

List ways that an organization can sustain an effective culture.

Accepted Answer

Storytelling is one way to maintain effective cultures.
Rallies or "pep talks" by top executives also serve to reinforce a firm's culture.
Reward and incentive systems represent a powerful means of influencing an organization's culture

Question 11

All of the following are characteristics of effective reward and incentive systems, except:

Accepted Answer

A)   performance measures are clear and highly visible.
B)   the structure is fixed to assure employees of consistency.
C)   the compensation system is perceived as fair and equitable.
D)   objectives are well understood, and broadly accepted.E) None of the above
F) All of the above

Question 12

It is generally argued that the takeover constraint:

Accepted Answer

A)   deters management from engaging in opportunistic behaviour.
B)   deters management from considering acquiring other companies.
C)   deters management from declaring dividends.
D)   deters management from increasing a firm's level of borrowing.E) A) and B)
F) B) and D)

Question 13

Product diversification by a company is a cheaper way to reduce shareholder risk than portfolio diversification by shareholders.

Accepted Answer

A) True 
 B)False

Question 14

Discuss at least three external control mechanisms.

Accepted Answer

Several external governance control mech...

Question 15

Most successful organizations minimize the need for explicit rules, regulations, and other boundaries by

Accepted Answer

A)   posting written statements of the organization's goals and objectives.
B)   discouraging the formation of subcultures that isolate work groups.
C)   designing effective reward systems.
D)   encouraging employees to see themselves as free agents.E) All of the above
F) A) and B)

Question 16

For a reward system to be effective, it must be perceived as fair and equitable.

Accepted Answer

A) True 
 B)False

Question 17

For firms competing in highly unstable and turbulent industries, "traditional" strategic controls are most appropriate.

Accepted Answer

A) True 
 B)False

Question 18

In Japan, the named used for business group is:

Accepted Answer

A)   Chaebols
B)   Chameleons
C)   Kaizen
D)   KeiretusE) A) and C)
F) B) and C)

Question 19

The Sarbanes-Oxley Act of 2002 does not apply to Canadian publicly-listed companies operating in the U.S. that are listed on U.S. stock exchanges.

Accepted Answer

A) True 
 B)False  False

Question 20

The risk of being acquired by hostile raiders is often referred to as the takeover constraint.

Accepted Answer

A) True 
 B)False

Exam 10: Strategic Control and Corporate Governance

In firms with differentiation strategies, the culture should foster _____ levels of interdependence and rewards should be based primarily on _____ measures of output.

Correct AnswerverifiedShow Answer

Behavioural control systems use culture, rewards, and boundaries in a balanced and consistent way to achieve results.

Correct AnswerverifiedShow Answer

In firms with related diversification strategies, the culture should foster _____ levels of interdependence and rewards should be based primarily on _____ measures of output.

Correct AnswerverifiedD

Public companies are required by law to disclose information regarding executive compensation packages.

Correct AnswerverifiedShow Answer

The U.S. Congress introduced the Sarbanes-Oxley Act in 2002 to ensure better governance of public corporations-similar provisions have NOT been put in place in Canada.

Correct AnswerverifiedShow Answer

Continuous monitoring enhances an organization's ability to respond with speed and flexibility.

Correct AnswerverifiedShow Answer

What are the "traditional" approaches to strategic control?

Correct AnswerverifiedTraditional control mechanisms rely on m...View AnswerShow Answer

The causes of counterproductive behaviour in organizations include

Correct AnswerverifiedShow Answer

By takeover constraint, we mean

Correct AnswerverifiedShow Answer

List ways that an organization can sustain an effective culture.

Correct AnswerverifiedStorytelling is one way to maintain effective cultures. Rallies or "pep talks" by top executives also serve to reinforce a firm's culture. Reward and incentive systems represent a powerful means of influencing an organization's culture

All of the following are characteristics of effective reward and incentive systems, except:

Correct AnswerverifiedShow Answer

It is generally argued that the takeover constraint:

Correct AnswerverifiedShow Answer

Product diversification by a company is a cheaper way to reduce shareholder risk than portfolio diversification by shareholders.

Correct AnswerverifiedShow Answer

Discuss at least three external control mechanisms.

Correct AnswerverifiedSeveral external governance control mech...View AnswerShow Answer

Most successful organizations minimize the need for explicit rules, regulations, and other boundaries by

Correct AnswerverifiedShow Answer

For a reward system to be effective, it must be perceived as fair and equitable.

Correct AnswerverifiedShow Answer

For firms competing in highly unstable and turbulent industries, "traditional" strategic controls are most appropriate.

Correct AnswerverifiedShow Answer

In Japan, the named used for business group is:

Correct AnswerverifiedShow Answer

The Sarbanes-Oxley Act of 2002 does not apply to Canadian publicly-listed companies operating in the U.S. that are listed on U.S. stock exchanges.

Correct AnswerverifiedFalse

The risk of being acquired by hostile raiders is often referred to as the takeover constraint.

Correct AnswerverifiedShow Answer

In firms with differentiation strategies, the culture should foster _ levels of interdependence and rewards should be based primarily on _ measures of output.

Correct Answer
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In firms with related diversification strategies, the culture should foster _ levels of interdependence and rewards should be based primarily on _ measures of output.

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D

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Traditional control mechanisms rely on m...
View Answer

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Storytelling is one way to maintain effective cultures. Rallies or "pep talks" by top executives also serve to reinforce a firm's culture. Reward and incentive systems represent a powerful means of influencing an organization's culture

Correct Answer
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Several external governance control mech...
View Answer

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False

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