Exam 1: Law, Value Creation, and Risk Management.

Laws enacted in response to corporate misdeeds often impose fewer restrictions and costs on business than would have been imposed had firms as a whole acted more responsibly at the outset.

Under the resource-based view of a business firm,a firm's resources can be a source of sustained competitive advantage if they are valuable,rare,and perfectly imitable by competitors.

Legally astute management teams typically wait until later in the strategic development to bring counsel in and evaluate legal considerations.

A firm's illegal conduct has no bearing on the firm's competitive advantage because it does not necessarily divert funds form strategic investments or affect its image and reputation with its customers.

According to the text,adequate protection of mminority shareholder rights increases investment in new ventures.

Under the __________ view of the firm,resources can be a source of competitive advantage if they are __________.

Lobbying legislators is one method by which managers can help shape the environment in which they do business.

At its core,legal astuteness is the ability of a manager to:

Private law provides the legal rules within which firms compete.

According to Exhibit 1.8,what is one of the ways U.S.law promotes public welfare.?

________________ strategies for dealing with the interface between a firm's business and the natural environment that go beyond ___________ regulatory compliance have been associated with ________________.

Discuss ways in which laws and regulations promote economic growth.

According to Exhibit 1.6,which of the following is true regarding typical requirements placed on employers mandating the provision of employee benefits?

Which of the following is NOT one of the four primary public policy objectives furthered by laws and regulations applicable to U.S.business?

The __________ was enacted after widespread abuses in the subprime mortgage market.

Assume that after paying a large fine,a company survives charges of illegal activity.In what ways does illegal conduct put a company at a competitive disadvantage?

Fact Pattern 1-1Susan, the CEO of ABC Company, which was involved in the production and sale of hair care products, decided to hire new employees to develop new product lines for a planned expansion into the dog shampoo arena. She was concerned, however, that the employees specializing in canine products might leave at some point, taking company secrets with them for use in competition with ABC. She, therefore, required that the employees sign contracts containing covenants not to compete. Susan also consulted her in-house counsel, Sam, regarding the effect of some new regulations involving the use of certain chemicals in shampoo and conditioner. Sam told her, however, to ignore the regulations until some type of investigation of the company was started. Sam says that more than likely no one will ever check to see whether or not ABC is in compliance. Susan disagrees with his advice and decides to seek other counsel. -Refer to Fact Pattern 1-1.The use of covenants not to compete involves which of the following forces identified by Michael Porter and referenced in the text?

Managers practicing __________ view the cost of compliance as a(n)__________.

The Systems Approach recognizes that law is dynamic,as opposed to static.

Self-regulation within the advertising industry has been largely successful in reducing the number of fast-food commercials directed at children.