Strategic Management Chapter 2

board members older than age 70

All EXCEPT​ ________ are becoming more common on boards in the United States and the United Kingdom than in the past.

Wikipedia

All of the following are viable methods individuals and groups use to help investors evaluate a​ firm's corporate governance EXCEPT​ ________.

There is clear evidence indicating that a high proportion of outsiders on a board results in improved financial performance

All of the following statements are true about outside directors EXCEPT​ ________.

federal laws

All of the following were reported by the Association of Corporate Directors as the most important issues boards should address EXCEPT​ ________.

Corporate governance

​________ refers to the relationship among groups in determining the direction and performance of the corporation.

the agency theory proposes​ that, because of their long tenure with the​ corporation, insiders tend to identify with the corporation and its success

All of the following statements are true about agency theory EXCEPT​ ________.

63

Approximately​ ________ percent of U.S. boards of directors have staggered boards.

Due care

In a legal​ sense, the board is required to direct the affairs of the corporation but not to manage them. Which of the following terms describes how the board of directors is charged by law to​ act?

Canada; United States

Laws and standards defining the responsibilities of boards of directors vary from country to country. Board members in​ ________ face more than 100 provincial and federal laws governing director​ liability; whereas, the​ ________ has no clear national standards or federal laws.

staggered

Many corporations whose directors serve terms of more than one year divide the board into classes and elections are varied so that only a portion of the board stands for election each year. This is called​ a(n) ________ board.

Delaware

More than half of all publicly traded companies in the United States are incorporated in the state of​ ________.

General succession planning and human resource responsibilities

Of the​ following, which is NOT a responsibility of a board of​ directors?

the lead director becomes less important because only a small percentage of U.S. boards held regular executive sessions without the CEO being present

Recall that many of those who prefer that the Chairman and CEO positions be combined agree that the outside directors should elect a lead director. All of the following are correct statements about the lead director EXCEPT​ ________.

NASDAQ

Similar to the New York Stock​ Exchange, ________ rules require that nominations for new directors be made by either a nominating committee of independent outsiders or by a majority of independent outside directors.

social needs of society

Society increasingly expects boards of directors to balance the economic goal of profitability with​ ________.

everyone

Strategic management involves​ ________ in the organization.

less biased and more likely to evaluate​ management's performance objectively than are inside directors.

The boards of most publicly owned corporations are composed of both inside and outside directors. People who favor a high proportion of outsiders state that outside directors are​ _________________.

agency

The​ ________ theory states that problems arise in corporations because the agents​ (top management) are not willing to bear responsibility for their decisions unless they own a substantial amount of stock in the corporation.

If an​ individual, group, another company own more than​ 50% of the voting​ shares, they become exempt from certain NYSE and NASDAQ requirements

Which of the following is NOT necessarily a BENEFIT of the implementation of​ Sarbanes-Oxley?

Strategic Vision

Which of the following most accurately describes what the company is capable of​ becoming, and is often communicated in the​ company's vision​ statement?