Question 1

Is CEO duality good or bad? Summarize the two schools of thought that represent alternate positions on this issue.

Accepted Answer

CEO duality, where the CEO also serves a...

Question 2

What value do effective strategic control systems provide to the implementation of strategy?

Accepted Answer

Effective strategic control systems prov...

Question 3

Most organizations with strong cultures and a sound system of rewards and incentives can eventually internalize boundaries rather than use explicit rules and regulations.Which of the following is not a technique for moving in that direction?

Accepted Answer

A)   Hire people that identify with the dominant values of the organization.
B)   Develop managerial role models.
C)   Minimize training and indoctrination.
D)   Align reward systems with organizational goals and objectives.E) B) and C)
F) A) and B)

Question 4

Effective boundaries and constraints _____________.

Accepted Answer

A)   tend to inhibit efficiency and effectiveness
B)   distract employees who are trying to focus on organizational priorities
C)   minimize improper and unethical conduct
D)   tend to limit organizational growthE) None of the above
F) A) and B)

Question 5

The takeover constraint refers to _____________.

Accepted Answer

A)   constraints placed by the firm on raiders who want to take over 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 raiderE) A) and D)
F) A) and C)

Question 6

As firms simultaneously downsize and face the need for increased coordination across organizational boundaries,a control system based primarily on ______________ is dysfunctional.

Accepted Answer

A)   boundaries and constraints
B)   culture and rewards
C)   organizational loyalty
D)   innovation and risk takingE) A) and B)
F) B) and C)

Question 7

The Sarbanes-Oxley Act of 2002 stipulates that executives of a firm will still be able to sell their shares in the firm when other employees cannot.

Accepted Answer

A) True 
 B)False

Question 8

Action plans permit a degree of autonomy for managers who sometimes must modify activities to achieve the desired outcome.

Accepted Answer

A) True 
 B)False

Question 9

Sales quotas,operating budgets,and production schedules are examples of traditional controls.

Accepted Answer

A) True 
 B)False

Question 10

Different functional areas within an organization often have different reward systems.

Accepted Answer

A) True 
 B)False

Question 11

Why is it important to have a balance among the three behavioral controls (culture,rewards,and boundaries)? Is there a danger associated with emphasizing one behavioral approach more than another?

Accepted Answer

It is important to have a balance among ...

Question 12

Effective short-term objectives should ______________ and _____________.

Accepted Answer

A)   be specific; measurable
B)   be achievable; not challenging
C)   be motivating; not limiting
D)   be time defined; not limitingE) B) and D)
F) A) and B)

Question 13

What are the four characteristics of effective contemporary control systems? Give examples of how firms apply these practices.

Accepted Answer

The four characteristics of effective co...

Question 14

In choosing sides concerning CEO duality,two schools of thought exist.Which of the following would not be a consideration for the Unity of Command school of thought?

Accepted Answer

A)   One person holding both roles will be able to act more efficiently and effectively.
B)   CEO duality provides smoother strategic decision making.
C)   CEO duality creates unit across the board of directors and managers of a company.
D)   CEO duality slows down decision-making.E) A) and D)
F) A) and C)

Question 15

Rule-based controls are least appropriate in organizations with which one of the following characteristics?

Accepted Answer

A)   Environments are stable and predictable.
B)   Employees are highly skilled and independent.
C)   There is consistency in product and service.
D)   The risk of malfeasance is extremely high.E) None of the above
F) C) and D)

Question 16

As firms downsize,a control system based on rewards and culture becomes dysfunctional.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following approaches to behavioral strategic control would be the least appropriate for an organization in which there is a great need for innovation and a high degree of autonomy?

Accepted Answer

A)   culture
B)   rewards
C)   rules
D)   incentivesE) A) and C)
F) A) and D)

Question 18

Stock analysts generally issue more sell recommendations than buy recommendations.

Accepted Answer

A) True 
 B)False

Question 19

What are the three key means to align the interests of owners (shareholders)and managers in a corporation?

Accepted Answer

The three key means to align the interes...

Question 20

External governance control mechanisms include all of the following except _____________.

Accepted Answer

A)   auditors
B)   analysts
C)   competitors
D)   mediaE) A) and B)
F) All of the above

Exam 9: Strategic Control and Corporategovernance

Action plans permit a degree of autonomy for managers who sometimes must modify activities to achieve the desired outcome.

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As firms simultaneously downsize and face the need for increased coordination across organizational boundaries,a control system based primarily on ______________ is dysfunctional.

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External governance control mechanisms include all of the following except _____________.

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What value do effective strategic control systems provide to the implementation of strategy?

Correct AnswerAnswered by ExamLex AIEffective strategic control systems prov...View AnswerShow Answer

Different functional areas within an organization often have different reward systems.

Correct AnswerverifiedShow Answer

Stock analysts generally issue more sell recommendations than buy recommendations.

Correct AnswerverifiedShow Answer

Effective boundaries and constraints _____________.

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As firms downsize,a control system based on rewards and culture becomes dysfunctional.

Correct AnswerverifiedShow Answer

Effective short-term objectives should ______________ and _____________.

Correct AnswerverifiedShow Answer

Most organizations with strong cultures and a sound system of rewards and incentives can eventually internalize boundaries rather than use explicit rules and regulations.Which of the following is not a technique for moving in that direction?

Correct AnswerverifiedShow Answer

The takeover constraint refers to _____________.

Correct AnswerverifiedShow Answer

The Sarbanes-Oxley Act of 2002 stipulates that executives of a firm will still be able to sell their shares in the firm when other employees cannot.

Correct AnswerverifiedShow Answer

What are the four characteristics of effective contemporary control systems? Give examples of how firms apply these practices.

Correct AnswerAnswered by ExamLex AIThe four characteristics of effective co...View AnswerShow Answer

Rule-based controls are least appropriate in organizations with which one of the following characteristics?

Correct AnswerverifiedShow Answer

In choosing sides concerning CEO duality,two schools of thought exist.Which of the following would not be a consideration for the Unity of Command school of thought?

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Is CEO duality good or bad? Summarize the two schools of thought that represent alternate positions on this issue.

Correct AnswerAnswered by ExamLex AICEO duality, where the CEO also serves a...View AnswerShow Answer

Which of the following approaches to behavioral strategic control would be the least appropriate for an organization in which there is a great need for innovation and a high degree of autonomy?

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What are the three key means to align the interests of owners (shareholders)and managers in a corporation?

Correct AnswerAnswered by ExamLex AIThe three key means to align the interes...View AnswerShow Answer

Why is it important to have a balance among the three behavioral controls (culture,rewards,and boundaries)? Is there a danger associated with emphasizing one behavioral approach more than another?

Correct AnswerAnswered by ExamLex AIIt is important to have a balance among ...View AnswerShow Answer

Sales quotas,operating budgets,and production schedules are examples of traditional controls.

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Effective strategic control systems prov...
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Effective short-term objectives should __ and _.

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The four characteristics of effective co...
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CEO duality, where the CEO also serves a...
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The three key means to align the interes...
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It is important to have a balance among ...
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