Top 150+ Solved Managing for Sustainability MCQ Questions Answer
Q. An organization that is owned by shareholders but managed by agents on their behalfis conventionally known as the modern:
a. Conglomerate
b. Corporation
c. Company
d. Firm
Q. The modern corporation has four characteristics. These are limited liability, legal personality, centralized management and:
a. Fiduciary duty
b. Stakeholders
c. Shareholders
d. Transferability
Q. What makes a corporation distinct from a partnership?
a. If the members of a corporation die, the corporation remains in existence providing it has capital
b. If the members of a corporation die, the corporation ceases to exist
c. A corporation cannot own property
d. A corporation cannot be held responsible for the illegal acts of its employees
Q. The term 'asymmetry of information' means information in a corporation is:
a. Transferable to all stakeholders
b. Not transferable to all stakeholders
c. Not equally transparent to all stakeholders
d. Equally transparent to all stakeholders
Q. The view that sees profit maximization as the main objective is known as:
a. Shareholder theory
b. Principal-agent problem
c. Stakeholder theory
d. Corporation theory
Q. Where an organization takes into account the effect its strategic decisions have on society, this is known as:
a. Corporate governance
b. Business policy
c. Business ethics
d. Corporate social responsibility
Q. Which intervention resulted from the Enron scandal?
a. The Hampel Committee
b. The Sarbannes-Oxley Act
c. The Greenbury Committee
d. The Cadbury Committee
Q. Executive pay in the UK was reviewed by:
a. The Greenbury Committee
b. The Hampel Committee
c. The Cadbury Committee
d. The Higgs Committee
Q. In Japan, some corporations operate within the philosophy of 'kyosei'. The term 'kyosei' means:
a. No man shall be richer than another man
b. All stakeholders are equal
c. Living and working for the common good
d. If the corporation is bad, society is bad
Q. When managerial self-dealings are excessive and left unchecked,
a. they can have serious negative effects on share values
b. they can impede the proper functions of capital markets.
c. they can impede such measures as GDP growth.
d. all of the above
Q. Corporate governance structure
a. varies a great deal across countries.
b. has become homogenized following the integration of capital markets.
c. has become homogenized due to cross-listing of shares of many public corporations.
d. none of the above
Q. In a public company with diffused ownership, the board of directors is entrusted with
a. monitoring the auditors and safeguarding the interests of shareholders.
b. monitoring the shareholders and safeguarding the interests of management.
c. monitoring the management and safeguarding the interests of shareholders.
d. none of the above
Q. The key weakness of the public corporation is
a. too many shareholders, which makes it difficult to make corporate decision.
b. relatively high corporate income tax rates.
c. conflicts of interest between managers and shareholders.
d. conflicts of interests between shareholders and bondholders.
Q. When company ownership is diffuse,
a. a "free rider" problem discourages shareholder activism.
b. the large number of shareholders ensures strong monitoring of managerial behavior because with a large enough group, there's almost always someone who will to incur the costs of monitoring management.
c. few shareholders have a strong enough incentive to incur the costs of monitoring management.
d. both a) and c) are correct
Q. In many countries with concentrated ownership
a. the conflicts of interest between shareholders and managers are worse than in countries with diffuse ownership of firms.
b. the conflicts of interest are greater between large controlling shareholders and small outside shareholders than between managers and shareholders.
c. the conflicts of interest are greater between managers and shareholders than between large controlling shareholders and small outside shareholders.
d. corporate forms of business organization with concentrated ownership are rare.