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AUDIT: Chapter 4 > STRATMGMT - CHAPTER 8 > Flashcards

STRATMGMT - CHAPTER 8 Flashcards

1
Q

This are group of individuals that oversees the activities of an organization or corporation

A

Board of Directors

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2
Q

TRUE OR FALSE: Effective boards may help bring prestige and important resources to the organization

A

TRUE

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3
Q

TRUE OR FALSE: Efficient boards may help bring prestige and important resources to the organization

A

FALSE (Efficient-effective)

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4
Q

Generally agreed, they are the key stakeholders of most corporations

A

Shareholders of the company’s stock

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5
Q

TRUE OR FALSE: The possibility of conflicts of interest is considerable in public corporations.

A

TRUE

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6
Q

TRUE OR FALSE: The possibility of conflicts of interest is considerable in private corporations

A

FALSE (private-public)

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7
Q

This occurs when the interests of the individuals that manage the company may not align with the interest of the owners

A

Agency Problem

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8
Q

TRUE OR FALSE: The composition of the board is critical because the dynamics of the board play an important part in resolving the agency problem.

A

TRUE

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9
Q

TRUE OR FALSE: The composition of the board is crucial because the dynamics of the board play an important part in resolving the agency problem.

A

FALSE (crucial-critical)

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10
Q

TRUE OR FALSE: The composition of the board is critical because the dynamics of the board play an important part in resolving the agency conflict.

A

FALSE (conflict-problem)

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11
Q

This refers to a situation in which the CEO is also the chairman of the board of directors

A

CEO duality

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12
Q

This has also been known to create a bitter divide within a corporation

A

CEO duality

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13
Q

It is a function of the competitive wages that other corporations would offer for a potential CEO’s services

A

CEO compensation

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14
Q

TRUE OR FALSE: CEO pay is positively correlated with the size of the firms

A

TRUE

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15
Q

TRUE OR FALSE: The bigger the firm, the higher the CEO’S compensation

A

TRUE

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16
Q

CEO compensation generally includes what?

A
  1. Guaranteed salary
  2. Cash bonus
  3. Stock Options
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17
Q

This provides another valuable source of CEO compensation

A

Perks

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18
Q

The term perks is derived from the word?

A

Perquisite

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19
Q

This word refers to the special privileges, or rights, as a function of one’s position

A

Perquisite

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20
Q

This occurs when a publicly traded company is purchased and then taken off the stock market

A

Leveraged Buyout

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21
Q

This are individuals or firms that hopes to conduct a takeover

A

Corporate Raiders

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22
Q

Dubbed as an unsolicited takeover attempt

A

Hostile takeover

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23
Q

This kind of knight entered when another firm that may be more favorable to existing management enters the picture as an alternative buyer

A

White Knight

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24
Q

How many stages moral development has?

A

6 stages

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25
Q

What are the three levels wherein the six stages were grouped?

A
  1. Preconventional
  2. Conventional
  3. Postconventional
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26
Q

This level of moral development is very egocentric in nature and tied with persona concerns

A

Preconventional

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27
Q

egocentric in nature

A

Preconventional level

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28
Q

What stage is is wherein individuals focus on the direct consequences that their actions will have

A

Stage 1

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29
Q

Direct Consequences

A

Stage 1

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30
Q

What stage is it wherein right or wrong is defined by the reward stage

A

Stage 2

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31
Q

In this level of moral development, morality is judged by comparing individuals’ actions with the expectations of society

A

Conventional Level

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32
Q

In this stage, individuals are conformity driven and act with the goal of fulfilling social roles

A

Stage 3

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33
Q

What stage is it wherein parents encourage their children to be good boys and girls

A

Stage 3

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34
Q

In these stage, the importance of obeying laws, social conventions, or other forms of authority to aid in maintaining a functional society is encouraged

A

Stage 4

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35
Q

This level occurs when morality is more than simply following social rules or norms.

A

Postconventional Level

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36
Q

What is the other term for postconventional level?

A

Principled level

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37
Q

This stage considers different values and opinions

A

Stage 5

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38
Q

TRUE OR FALSE: Laws are viewed as social contracts that promote the greatest good for the greatest number of people.

A

TRUE

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39
Q

TRUE OR FALSE: Laws are viewed as legal contracts that promote the greatest good for the greatest number of people.

A

FALSE (legal-social)

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40
Q

In this stage, moral reasoning is based on universal ethical principles

A

Stage 6

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41
Q

At this stage, laws are grounded in the idea of right and wrong

42
Q

idea of civil disobedience

43
Q

TRUE OR FALSE: Significant criminal penalties now exist for white-collar crimes

44
Q

Refers to which a business is created with a goal of bettering both business and sociey

A

Concept of Social Entrepreneurship

45
Q

Occurs when a commitment to individuals, communities, and the natural environment is valued alongside the goal of creating economic value

A

Corporate Social Performance

46
Q

This provides ratings on numerous strengths and concerns for each firm along a number of dimensions

A

KLD Database

47
Q

TRUE OR FALSE: A firm’s CSP rating is lowered when a firm is involved in tax controversies or other negative actions that affect the community

48
Q

TRUE OR FALSE: A firm’s CSP rating increases when a firm is involved in tax controversies or other negative actions that affect the community

A

FALSE (increases-lowered)

49
Q

TRUE OR FALSE: CSP diversity strengths are scored positively when the company is known for promoting women and minorities, especially for board membership and the CEO position

50
Q

TRUE OR FALSE: CSP diversity strengths are scored negatively when the company is known for promoting women and minorities, especially for board membership and the CEO position

A

FALSE (negatively-positively)

51
Q

This dimension of CSP gauges potential strengths such as notable union relations, profit sharing and employee stock-option plans, etc

A

Employee Relations Dimension

52
Q

This dimension records strengths by examining engagement in recycling, preventing pollution, or using alternative energies

A

Environmental Dimension

53
Q

This exist when a firm has an established or recognized quality program

A

Product Quality/Safety Strength

54
Q

These strengths are evident when lower levels of compensation for top management and board members exist

A

Corporate governance strengths

55
Q

founder of social psychology

A

Kurt Lewin

56
Q

One powerful environmental influence that can be seen in organizations today is based on?

A

Generational Differences

57
Q

Enumerate the four generations of workers

A
  1. Traditionalists
  2. Baby Boomers
  3. Generation X
  4. Generation Y
58
Q

TRUE OR FALSE: Effective management of these four different generations involves a realization of their differences and preferred communication styles

59
Q

This generation is born between 1925 and 1946

A

Traditionalists

60
Q

Great Depression

A

Traditionalists

61
Q

Dubbed as the “The Greatest Generation”

A

Traditionalists

62
Q

This generation values personal communication, loyalty, and hierarchy, and is resistant to change

A

Traditionalists

63
Q

This group makes up roughly 5 percent of the workforce

A

Traditionalists

64
Q

The generation born between 1946 and 1964 are called

A

Baby Boomers

65
Q

corresponding with a papulation “boom”

A

Baby Boomers

66
Q

College graduates should be aware that this group makes up the majority of the workforce and view face time as an important contribution to a successful work environment.

A

Baby Boomers

67
Q

This generation wants to be in office activities and values recognition is important to achieving cohesiveness between generations

A

Baby Boomers

68
Q

This generation are born between 1965 and 1980

A

Generation X

69
Q

Marked by an X symbolizing their unknown nature

A

Generation X

70
Q

Members of this generation price flexibility in their jobs and dislike the feeling that they are being micromanaged

A

Generation X

71
Q

desire for independence

A

Generation X

72
Q

“What’s in it for me?”

A

Generation X

73
Q

Another term for Generation Y is?

A

Millennials

74
Q

This generation is highlighted by positive attributes such as the ability to embrace technology

A

Generation Y

75
Q

This group prizes job and life satisfaction highly, so making the workplace an enjoyable environment is key in managing them

A

Generation Y

76
Q

This generation is viewed as needing more feedback than previous groups

A

Generation Y

77
Q

needing more feedback

A

Generation Y

78
Q

“Trophy Kids”

A

Generation Y

79
Q

TRUE OR FALSE: Understanding generational differences can provide valuable insight into the perspectives that shape the behaviors of individuals born at different periods of time.

80
Q

The process of rational involves?

A
  1. Problem Identification
  2. Establishment and weighing of decision criteria
  3. Generation and Evaluation of alternatives
  4. Selection of the best alternative
  5. Decision implementation
  6. Decision Evaluation
81
Q

TRUE OR FALSE: In reality, decision making is not rational because there are limits on our ability to collect and process information.

82
Q

TRUE OR FALSE: In reality, decision making is rational because there are limits on our ability to collect and process information.

A

FALSE (rational-not rational)

83
Q

This bias occurs when individuals react to arbitrary or irrelevant numbers when setting financial or other numerical targets.

A

Anchoring and adjustment bias

84
Q

This bias occurs when more readily available information is incorrectly assessed to be more likely.

A

Availability Bias

85
Q

readily available information

A

Availability Bias

86
Q

Occurs when individuals continue on a failing course of action even after it becomes clear that this may be a poor path to follow.

A

Bias of escalation of commitment

87
Q

This occurs when good outcomes are attributed to personal characteristics but undesirable outcomes are attributed to external circumstances.

A

Fundamental Attribution Error

88
Q

This bias occurs when mistakes seem obvious after they have already occured.

A

Hindsight bias

89
Q

This bias is often seen when second-guessing failed plays on the football field

A

Hindsight Bias

90
Q

TRUE OR FALSE: Judgments about correlation and causality can lead to problems when individuals make inaccurate attributions about the causes of events.

91
Q

Enumerate the three necessary things to determine cause-or why on element affects another

A
  1. Correlation
  2. Temporal order
  3. Ruling out other potential causes
92
Q

This expression means “all things being equal or constant”

A

Ceteris Paribus

93
Q

the basis of many economic models

A

Ceteris Paribus

94
Q

This bias occurs when individuals are more confident in their abilities to predict an event than logic suggests is actually possible

A

Overconfidence bias

95
Q

This bias occurs when managers use stereotypes of similar occurrences when making judgments or decisions

A

Representativeness bias

96
Q

may lead to discriminatory behaviors

A

Representativeness bias

97
Q

This bias occurs when the way information is presented alters the decision an individual will make

A

Framing bias

98
Q

TRUE OR FALSE: Poor framing frequently occurs in companies because employees are often reluctant to bring bad news to CEOs

99
Q

This occurs when individuals settle for the first acceptable alternative instead of seeking the best possible (optimal) decision

A

Satisficing

100
Q

TRUE OR FALSE: Poor framing rarely occurs in companies because employees are often reluctant to bring bad news to CEOs

A

FALSE (rarely-frequently)

101
Q

TRUE OR FALSE: Poor framing rarely occurs in companies because employees are often reluctant to bring bad news to CEOs

A

FALSE (rarely-frequently)

AUDIT: Chapter 4 (8 decks)

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