MGT 313 Test 3
The ratio of average executive to average worker pay tends to increase during recessions and fall during periods of economic expansion.
false
Stock options represent the right to buy a company's stock at a set price for a certain period.
true
The Organization for Economic Cooperation and Development (OECD), representing 34 nations, issued a revised set of principles of corporate governance to serve as a benchmark for companies and policymakers worldwide.
true
In 2008 and early 2009, share values declined sharply as the global economy fell into a severe recession. This type of stock market is referred to as a: a. Bull market. b. Volatile market. c. Bear market. d. None of the above.
C
Consumer advocacy groups in the United States actively promote and speak for the interests of millions of consumers.
True
One problem with companies issuing product recalls is that the public is often unaware of them.
True
Consumers have become more dependent on businesses for product quality because: a. The complexity of products makes choices complicated for consumers b. Instructions for use or care of product are provided in clear and simple language c. Their technical competence allows them to inspect the products thoroughly d. Competition has forced manufacturers to market lower-quality goods
a
Which of the following is not true about institutional investors? a. Institutions invest their funds by purchasing shares of stock in corporations. b. The proportion of institutional ownership of stock in the U.S. has declined slowly since the 1960s. c. Pension funds and university endowments are examples of institutional investors. d. Institutions accounted for 63 percent of the value of all equities owned in the U.S. in 2010.
b
In some cases, businesses have banded together to agree on how they will treat their customers. This is called: a. Code of regulation b. Consumer affairs doctrine c. Voluntary industry codes of conduct d. Industry action standards
c
One alternative to product liability lawsuits is called a. Limited resolution b. Punitive damages reform c. Alternative dispute resolution d. Consumerism
c
Since the 1960s, growth in the numbers of institutional investors in the United States has been phenomenal.
true
The activism of institutional shareholders has often worsened company performance
false
Which of the following is true about corporate boards? a. Corporate boards average 12 members. b. About half of the directors are "outside" directors. c. Only one-third of all companies have at least one woman on their board. d. About 13 percent of board members are PhDs.
A
Social investors seek to eliminate from their investment portfolios companies that: a. Pollute the environment. b. Discriminate against employees. c. Make dangerous products like tobacco or weapons. d. All of the above.
D
The audit committee is required by U.S. law to be: a. Composed entirely of outside directors. b. Financially literate. c. Headed by the company's CEO. d. A and B, but not C.
D
Consumers make less rational choices when they have accurate information about a product
False
Industry "self-regulation" includes carrying out government mandated recalls.
False
The main responsibility of the National Highway Traffic Safety Administration is to: a. Set a uniform national speed limit b. Set airline safety standards c. Set motor vehicle safety standards d. Safeguard consumers from altered odometers
c
Warning consumers about the possible side effects of pharmaceutical drugs is an example of consumer protection against: a. Predatory pricing b. Incomplete information disclosure c. Hazardous products d. Violations of individual privacy
c
The major federal consumer protection agencies are authorized by law to: a. Intervene directly into the very center of free market activities, if that is considered necessary to protect consumers b. Substitute government-mandated standards for decision making by private buyers and sellers c. Substitute private manufacturing standards for government-mandated standards d. Both A and B, but not C
d
