Exam 13: Corporate Governance and Ethics

_____ is the right to buy a certain number of the corporation's shares at a specified future date for a specified price.

Anastasia, a student of business management, claims that since most businesses are primarily concerned with acquiring more assets, the shareholder primacy model is better than the stakeholder model of business management.Which of the following facts strengthens her claims?

_____ are those values that define for an individual, group, or society things that are morally right or wrong.

ShopEazy Inc.operates a chain of supermarkets.The managers and employees of the company have been on strike for months due to their differences with its owners.As a result, the share price of the company has fallen to a historic low.Zeltro Investments decides to purchase a majority of ShopEazy's shares, confident that it can manage the company better.In this scenario, Zeltro Investments can be best categorized as a(n) _____.

Abdul, a student of business management, claims that the stakeholder model is not a good model of business management.Which of the following would he most likely cite as a reason for his claim?

Who is a stakeholder of a business organization?

Anastasia is one of the managers of Geller Technology Inc., an information technology firm.She will be considered the agent of the:

How did the general-purpose corporations formed in the twentieth century grow?

Jiao, a student of business management, claims that the shareholder primacy model is better than the stakeholder model of business management.Which of the following statements best supports her claim?

Which of the following individuals has a legal fiduciary duty to act in the best interests of the owners of the corporation where he or she works?

RedMart Corp.operates a chain of supermarkets.The managers and other employees of the company have been on strike for months due to their differences with its owners.As a result, the share price of the company has fallen drastically.Pro Investments Inc.purchases a majority of the shares of RedMart, confident that it can manage the company better.The problem faced by RedMart Corp.as result of the separation of ownership and control can be termed as a(n) _____.

In a company, who are called agents?

YCL Inc.operates a retail chain.The managers and employees of the company have been on strike for months due to their differences with its owners.As a result, the share price of the company has fallen to a historic low.UltraPlus Investments decides to purchase a majority of the shares of YCL, confident that it can manage the company better.The board of directors of YCL refuses to sell the shares of the company to UltraPlus Investments.As a result, UltraPlus tries to place its own people on the YCL's board of directors to change their decision.In this scenario, UltraPlus is involved in a(n) _____.

_____ is best described as the processes and structures that provide the ultimate decision making authority for a firm.

Veltek Development Solutions was a company that existed in the nineteenth century.It was formed after obtaining a charter from the state legislature for the purpose of building a small bridge over a river.In this scenario, Veltek Development Solutions can be considered a _____.

Chemica Corp.is a company that manufactures household chemicals and fertilizers used in farming.The government of the state in which it operates will be affected by the business through the:

Fatima wants to start a small business.She does not want to share the profits of her business with anyone else.In this scenario, Fatima should most likely opt for which of the following types of business ownership?

A(n) _____ is a legal structure for organizing a business where the organization is a distinct and separate entity from its owners.

A _____ is a formal declaration of a company's core values, business objectives, and ethical aspirations.

HMR Inc.is a company that manufactures household chemicals and fertilizers used in farming.Its customers consist of farmers and other people who purchase its products.Its suppliers will be most affected by the business through the: