Corporate Networks

Question 1

What is the main mechanism through which corporate elites in interlocking directorates consolidate power and influence?

A) Competition between firms
B) Serving on multiple corporate boards
C) Ownership of multiple companies
D) Government regulation of corporations

Answer 1

B) Serving on multiple corporate boards

Question 2

According to Allen (1974), how do interlocking corporate directorates influence economic decisions?

A) By aligning the interests of multiple corporations through shared board membership
B) By creating monopolies through elite control of resources
C) By promoting competition among corporations
D) By facilitating mergers between competing firms

Answer 2

A) By aligning the interests of multiple corporations through shared board membership

Question 3

What concept did Stark and Vedres (2012) introduce to explain the gaps between firms based on political affiliations?

A) Political polarization
B) Elite fragmentation
C) Structural holes
D) Political holes

Answer 3

D) Political holes

Question 4

What is a key implication of interlocking directorates in terms of market competition and corporate governance?

A) It enhances competition by encouraging cross-border collaboration.
B) It reduces the influence of government regulation on corporations.
C) It limits competition by consolidating power among a small elite group.
D) It fosters transparency and reduces conflict of interest.

Answer 4

C) It limits competition by consolidating power among a small elite group.

Question 5

Which of the following is NOT a key finding of the Huijzer and Heemskerk (2021) study on corporate elites?

A) The corporate elite is both centralized and diffuse.
B) Some fluid boundaries allow new elites to enter and exit the network.
C) Interlocking directorates reinforce the consolidation of economic and political power.
D) Interlocking directorates are becoming increasingly diverse in terms of gender and nationality.

Answer 5

D) Interlocking directorates are becoming increasingly diverse in terms of gender and nationality.

Question 6

In Stark and Vedres’ (2012) study on Hungary, what effect did political partisanship have on business networks?

A) It created fragmentation and division in the network.
B) It led to an increase in cross-partisan collaboration.
C) It encouraged foreign investment in partisan firms.
D) It promoted innovation across politically divided firms.

Answer 6

A) It created fragmentation and division in the network.

Question 7

How do interlocking directorates indirectly and directly influence political agendas, according to the corporate network analysis?

A) By lobbying for monopolies
B) By promoting market competition
C) By providing access to political decision-makers
D) By reducing the influence of national governments

Answer 7

C) By providing access to political decision-makers

Question 8

What does the term cooptation refer to in the context of interlocking directorates, as discussed by Allen (1974)?

A) When one company takes over another through mergers.
B) When a corporation recruits elites into its network through shared board membership.
C) When directors leave their positions to join political offices.
D) When firms collaborate with government agencies.

Answer 8

B) When a corporation recruits elites into its network through shared board membership

Question 9

What is a key concern regarding the concentration of power through interlocking directorates?

A) It fosters international collaboration across industries.
B) It enhances transparency and corporate accountability.
C) It risks monopolistic practices and economic power concentration.
D) It decreases the need for regulatory frameworks.

Answer 9

C) It risks monopolistic practices and economic power concentration.