MGT 401 EXAM 1

Drag each description to the correct ESG criteria dimension Environmental Social Governance

- working to address climate change and other sustainability goals - pursuing policies that promote diversity, equity, health and safety, human rights, and inclusion - addressing factors related to business ethics, legal compliance, transparency, shareholder democracy, and board independence

Our understanding of the firm's purpose has shifted over time. Place the views of the firm's purpose in historical order, with the most recent view at the top. - Maximizing profits - Creating Shared Value -Pursuing corporate social responsibility

1) creating shared value 2) Pursuing corporate social responsibility 3) maximizing profits

What type of strategy can be pursued by a firm over the long term that allows it to be profitable without negatively affecting the planet or people? A) a sustainable strategy B) an industry strategy C) a profit-focused strategy D) a supplier strategy

A

Which statements correctly describe the ESG criteria? A) They evaluate firms on standards that go beyond financial results. B) They include environmental, social, and governmental aspects. C) They help firms clearly identify the best sustainable strategy. D) They identify customers as the most important stakeholders.

A, B

In their annual filing with the Securities and Exchange Commission, public companies in the United States must report which of the following? A) benchmarks B) expected share prices in the next fiscal year C) the total return to shareholders D) the return for each individual shareholder

A, C

What are the three defining problems faced by capitalism today according to strategy scholar Rebecca Henderson? A) beleaguered institutions B) unmotivated workers C) climate change D) economic inequality

A, C, D

The shared value creation framework encourages managers to focus on which of the following needs? A) economic B) spiritual C) emotional D) social

A, D

What is shareholder capitalism? A) an institutional arrangement in which a publicly owned company provides goods, services, and employment and has only limited liability B) an economic system in which the owners of shares in a public company are the company's legal owners and the providers of risk capital C) a management philosophy that proposes that the primary duty of managers is to act in the best interest of shareholders, which means maximizing returns on investment D) a set of economic criteria that help companies measure success on standards that go beyond mere financial results

B

Which of the following are primary strategy objectives? A) maximizing sales B) creating value C) controlling costs D) strengthening relationships

B, C

A public stock company is considered by law to be an entity with legal rights and obligations. This is known as _______________. A) investor ownership B) legal ownership C) legal personality D) limited liability

C

Return on invested capital, return on assets, and return on revenue are examples of the Blank______ most commonly used in strategic management to conduct direct performance comparisons between different companies. A) overhead costs B) debts C) profitability ratios D) competition metrics

C

The firm's accounting metrics, ability to create shareholder value, and ability to generate economic value tend to be _________________. A) perpendicularly related B) unrealistically bound C) correlated D) unrelated

C

Optics Incorporated, a publicly traded eyewear business, places profits ahead of all other performance metrics. This practice does which of the following? A) is a good example of corporate social responsibility B) benefits all of society, not just shareholders C) conforms to the traditional notion of shareholder capitalism D) fails to take into account the idea of corporate social responsibility

C, D

Social consequences of business activities, including pollution, energy loss, and dangerous accidents, are known as ______________. A) overruns B) unicorns C) output incidences D) externalities

D

The stakeholders if a firm are ________________. A) only those firms that contribute to the production and distribution of a company's products B) individuals or groups who own at least one share of a firm's stock C) only those who directly profit from a firm's success D) individuals or groups that can affect and are affected by the actions of the firm

D

Which of the following is a major drawback of public stock companies, according to many economists? A) They focus too heavily on the greater good. B) They suffer too easily from inertia. C) They get caught up in sustainability and overlook financial issues. D) They prioritize financial performance over all else.

D

The economic system in which the owners of shares in a public company are the company's legal owners and the providers of risk capital is called ________________ _________________.

shareholder capitalism

What is strategy?

the set of actions a firm takes to achieve a competitive advantage