The strategic decision makers in the firm are responsible for

o
the firms accounting practices
o
daily operations
o
rewards
o
the firms mission
Correct
2
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?
o
Utilitarian approach
o
Social justice approach
o
Moral rights approach
o
Business ethics approach
Correct
3
Which level of strategy uses a portfolio approach?
o
Corporate
o
Business
o
Functional
o
Operational
Correct
4
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?
o
Assemble and value the total package of benefits.
o
Identify a long-term durable mission.
o
Leverage core capabilities.
o
Weigh government influence.
Correct
5
This statement presents the firms strategic intent that focuses the energies and resources of the
company on achieving a desirable future.
o
Mission statement
o
Company statement
o
Vision statement
o
Values statement
Correct
6
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?
o
Utilitarian approach
o
Business ethics approach
o
Moral rights approach
o
Social justice approach
Correct
7
What do strategic managers call a flow of information through interrelated stages of analysis toward the
achievement of an aim?
o
Strategic control
o
Long-term objective
o
Continuous improvement
o
Process
Correct
8
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?
o
Corporate
o
Management
o
Business
o
Functional
Correct
9
Which of the following strategic decision makers implement the overall strategy?
o
Business managers
o
Functional managers
o
Board of directors
o
Corporate managers
Correct
10
The idea that businesses have a duty to serve society as well as the financial interest of stockholders is
called
o
going green
o
corporate social responsibility
o
corporate services
o
corporate audit
Correct
11
The behavioral consequences of strategic management are similar to those of
o
authoritative decision making
o
autocratic decision making
o
centralized decision making
o
participative decision making
Correct
12
The most critical quality of ethical decision making is
o
economics
o
expeditions
o
objectivity
o
consistency
Correct
13
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?
o
Stockholders
o
Government
o
Society
o
Employees
Correct
14
Which of these is true about Sarbanes-Oxley Act of 2002?
o
The act requires that the audit committee must be composed entirely of inside officers.
o
The CEO and CFO must verify every report containing the company's financial statements.
o
Companies are required to extend personal loans to executives and directors.
o
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
Correct
15
A broadly framed but enduring statement of a firms intent is defined as the company
o
vision
o
slogan
o
credo
o
mission
Correct
16
A major consequence of the Sarbanes-Oxley Act of 2002 has been the
o
outsourcing of jobs in lower wage countries
o
super growth in accounting firms in the U.S.
o
political fallout in congress
o
reorganizing of the governance structure of American corporations
Correct
17
This statement of a companys philosophy usually appears within the mission statement and specifies
basic beliefs of a firm.
o
Company slogan
o
Company commercial
o
Company creed
o
Company sponsor
Correct
18
Which law revised and strengthened auditing and account standards?
o
Federal Fair Trade Act of 1986
o
Sarbanes-Oxley Act of 2002
o
Truth in Lending Act of 1968
o
National Environmental Policy Act of 1969
Correct
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