BSG COMPREHENSIVE EXAM (FALL 2019)
EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL
DEFINED ANSWERS LATEST ALREADY
GRADED A+ 2025 – 2026
A primary objective of corporate governance is to -
ANSWERS-ensure that the interests of top-level managers
are aligned with the interests of shareholders.
Executive compensation is a governance mechanism that
seeks to align managers' and owners' interests through all of
the following EXCEPT - ANSWERS-penalties for inadequate
firm performance
,Executive compensation is a governance mechanism that
seeks to align managers and owners interests through -
ANSWERS-bonuses
long-term incentives such as stock options.
salary.
Which of the following is NOT an internal governance
mechanism? - ANSWERS-the market for corporate control
What is internal governance mechanism - ANSWERS-the
board of directors
ownership concentration
executive compensation
The separation between firm ownership and management
creates a(n) ____ relationship. - ANSWERS-agency
,Usually, large block shareholders are considered to be those
shareholders with at least ____ percent of the firm's stock. -
ANSWERS-5
A major conflict of interest between top executives and
owners, is that top executives wish to diversify the firm in
order to ____, while owners wish to diversify the firm to
____. - ANSWERS-reduce their employment risk, increase
the company's value
Managerial employment risk is the - ANSWERS-managers'
risk of job loss, loss of compensation, and/or loss of
reputation
The top management team at Sierra Infusion is concerned
about the declining performance of firms in their industry.
The team members are becoming concerned about the
security of their jobs at Sierra Infusion. At a meeting over
dinner, the top management team agrees to go to the board
of directors with a proposal for - ANSWERS-increased
diversification of Sierra Infusion.
What does help a company's social responsibility strategy
and results in a higher image rating - ANSWERS-· Using
, environmentally friendly or 'Green' materials in producing
footwear at the company's plants
· Using recycled packaging materials to box each pair of
athletic footwear at the company's distribution centers
· Making donations to charities and charitable causes
· Investing to improve energy efficiency and the use of
renewable sources at company facilities.
It makes good economic sense for company managers to
consider investing $3.5 million per million pairs of capacity
for a plant facilities upgrade that will boost labor
productivity by 25%. - ANSWERS-· At a plant that currently
has labor productivity of 3,200 pairs per worker and total
employee compensation of $20,000 annually because the
upgrade will cause labor costs per pair produced to decline
from $6.25 to $5.00
o Labor cost per pair = Compensation/Productivity
o Labor cost per pair initially = 20,000/3,200 = $6.25
EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL
DEFINED ANSWERS LATEST ALREADY
GRADED A+ 2025 – 2026
A primary objective of corporate governance is to -
ANSWERS-ensure that the interests of top-level managers
are aligned with the interests of shareholders.
Executive compensation is a governance mechanism that
seeks to align managers' and owners' interests through all of
the following EXCEPT - ANSWERS-penalties for inadequate
firm performance
,Executive compensation is a governance mechanism that
seeks to align managers and owners interests through -
ANSWERS-bonuses
long-term incentives such as stock options.
salary.
Which of the following is NOT an internal governance
mechanism? - ANSWERS-the market for corporate control
What is internal governance mechanism - ANSWERS-the
board of directors
ownership concentration
executive compensation
The separation between firm ownership and management
creates a(n) ____ relationship. - ANSWERS-agency
,Usually, large block shareholders are considered to be those
shareholders with at least ____ percent of the firm's stock. -
ANSWERS-5
A major conflict of interest between top executives and
owners, is that top executives wish to diversify the firm in
order to ____, while owners wish to diversify the firm to
____. - ANSWERS-reduce their employment risk, increase
the company's value
Managerial employment risk is the - ANSWERS-managers'
risk of job loss, loss of compensation, and/or loss of
reputation
The top management team at Sierra Infusion is concerned
about the declining performance of firms in their industry.
The team members are becoming concerned about the
security of their jobs at Sierra Infusion. At a meeting over
dinner, the top management team agrees to go to the board
of directors with a proposal for - ANSWERS-increased
diversification of Sierra Infusion.
What does help a company's social responsibility strategy
and results in a higher image rating - ANSWERS-· Using
, environmentally friendly or 'Green' materials in producing
footwear at the company's plants
· Using recycled packaging materials to box each pair of
athletic footwear at the company's distribution centers
· Making donations to charities and charitable causes
· Investing to improve energy efficiency and the use of
renewable sources at company facilities.
It makes good economic sense for company managers to
consider investing $3.5 million per million pairs of capacity
for a plant facilities upgrade that will boost labor
productivity by 25%. - ANSWERS-· At a plant that currently
has labor productivity of 3,200 pairs per worker and total
employee compensation of $20,000 annually because the
upgrade will cause labor costs per pair produced to decline
from $6.25 to $5.00
o Labor cost per pair = Compensation/Productivity
o Labor cost per pair initially = 20,000/3,200 = $6.25
