1. Which of these is true about Sarbanes-Oxley Act of 2002?
a. The CEO and CFO must verify every report containing the company’s financial statements.
b. The directors and executive officers are required to trade the company’s 401(k) plan, profit sharing plan and retirement plan during the blackout period
c. Companies are required to extend personal loans to executives and directors.
d. The act requires that the audit committee must be composed entirely of inside officers.
2. For the past 28 years, ABC, Inc. has made a significant investment of time, money, and other resources to increase the literacy rate in adult Americans. This represents which of these principles of successful collaborative social initiatives?
a. Assemble and value the total package of benefits.
b. Weigh government influence.
c. Identify a long-term durable mission.
d. Leverage core capabilities.
3. Of the three levels of strategy that are part of an organizations decision-making hierarchy, which level develops annual objectives and short-term strategies in such areas as production, operations, and research and development, finance and accounting, marketing, and human relations?
4. Judging the appropriateness of a particular action based on a goal to provide the greatest good for the greatest number of people is what ethics approach?
a. Business ethics approach
b. Utilitarian approach
c. Social justice approach
d. Moral rights approach
5. The most critical quality of ethical decision making is
6. The idea that businesses have a duty to serve society as well as the financial interest of stockholders is called
a. going green
b. corporate services
c. corporate audit
d. corporate social responsibility
7. The behavioral consequences of strategic management are similar to those of
a. participative decision making
b. centralized decision making
c. authoritative decision making
d. autocratic decision making
8. According to stakeholder theory, in a survey of over 2000 directors from over 290 U.S. companies, which of these stakeholders was perceived to be least important?
9. A broadly framed but enduring statement of a firm’s intent is defined as the company
10. Which law revised and strengthened auditing and account standards?
a. National Environmental Policy Act of 1969
b. Truth in Lending Act of 1968
c. Sarbanes-Oxley Act of 2002
d. Federal Fair Trade Act of 1986
11. Which of the following strategic decision makers implement the overall strategy?
a. Corporate managers
b. Business managers
c. Functional managers
d. Board of directors
12. What do strategic managers call a flow of information through interrelated stages of analysis toward the achievement of an aim?
b. Long-term objective
c. Continuous improvement
d. Strategic control
13. This statement of a company’s philosophy usually appears within the mission statement and specifies basic beliefs of a firm.
a. Company sponsor
b. Company commercial
c. Company slogan
d. Company creed
14. Judging the appropriateness of a particular action based on equity, fairness, and impartiality in the distribution of rewards and costs among individuals and groups is what ethics approach used by managers?
a. Moral rights approach
b. Utilitarian approach
c. Business ethics approach
d. Social justice approach
15. This statement presents the firm’s strategic intent that focuses the energies and resources of the company on achieving a desirable future.
a. Company statement
b. Vision statement
c. Mission statement
d. Values statement
16. Which level of strategy uses a portfolio approach?
17. The strategic decision makers in the firm are responsible for
a. daily operations
b. the firm’s accounting practices
d. the firm’s mission
18. A major consequence of the Sarbanes-Oxley Act of 2002 has been the
a. reorganizing of the governance structure of American corporations
b. super growth in accounting firms in the U.S.
c. political fallout in congress
d. outsourcing of jobs in lower wage countries
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