BSG COMPREHENSIVE FINAL EXAM
2026/2027 WITH ACTUAL CORRECT
QUESTIONS AND VERIFIED DETAILED
RATIONALES ANSWERS |CURRENTLY
TESTING QUESTIONS AND
SOLUTIONS|ALREADY GRADED
A+|NEWEST|JUST RELEASED!!|
BRAND NEW VERSION!!| GUARANTEED
PASS
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 ____.
reduce their employment risk, increase the company's value
In the US, monitoring by shareholders is usually accomplished through
the board of directors.
Generally, a board member who is a source of information about a firm's day-to-day activities is
classified as a(an) ____ director.
inside
A primary objective of corporate governance is to
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
penalties for inadequate firm performance
1|Page
,Executive compensation is a governance mechanism that seeks to align managers and owners
interests through
bonuses
long-term incentives such as stock options.
salary.
Which of the following is NOT an internal governance mechanism?
the market for corporate control
What is internal governance mechanism
the board of directors
ownership concentration
executive compensation
The separation between firm ownership and management creates a(n) ____ relationship.
agency
Usually, large block shareholders are considered to be those shareholders with at least ____
percent of the firm's stock.
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 ____.
reduce their employment risk, increase the company's value
Managerial employment risk is the
managers' risk of job loss, loss of compensation, and/or loss of reputation
2|Page
, 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
increased diversification of Sierra Infusion.
The market for corporate control serves as a means of governance when
internal controls have failed.
Corporate governance is all of the following EXCEPT
resolve conflicts among corporate employees.
Corporate governance is
mechanisms used to determine and control the strategic direction and performance of
organizations.
a means to establish and maintain harmony between owners and top managers whose interests
may conflict.
ensuring that top managers' interests are aligned with the interests of stockholders.
T or F? Collusion is a form of cooperative strategy.
T
T or F? Firms who are competitors can form cooperative strategies
T
T or F? If a large Asian cosmetics firm was to engage in a 50-50 partnership with a large
American chemical company to form a new company focused on creating advanced skin care
products, this would be considered a joint venture.
T
3|Page
2026/2027 WITH ACTUAL CORRECT
QUESTIONS AND VERIFIED DETAILED
RATIONALES ANSWERS |CURRENTLY
TESTING QUESTIONS AND
SOLUTIONS|ALREADY GRADED
A+|NEWEST|JUST RELEASED!!|
BRAND NEW VERSION!!| GUARANTEED
PASS
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 ____.
reduce their employment risk, increase the company's value
In the US, monitoring by shareholders is usually accomplished through
the board of directors.
Generally, a board member who is a source of information about a firm's day-to-day activities is
classified as a(an) ____ director.
inside
A primary objective of corporate governance is to
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
penalties for inadequate firm performance
1|Page
,Executive compensation is a governance mechanism that seeks to align managers and owners
interests through
bonuses
long-term incentives such as stock options.
salary.
Which of the following is NOT an internal governance mechanism?
the market for corporate control
What is internal governance mechanism
the board of directors
ownership concentration
executive compensation
The separation between firm ownership and management creates a(n) ____ relationship.
agency
Usually, large block shareholders are considered to be those shareholders with at least ____
percent of the firm's stock.
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 ____.
reduce their employment risk, increase the company's value
Managerial employment risk is the
managers' risk of job loss, loss of compensation, and/or loss of reputation
2|Page
, 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
increased diversification of Sierra Infusion.
The market for corporate control serves as a means of governance when
internal controls have failed.
Corporate governance is all of the following EXCEPT
resolve conflicts among corporate employees.
Corporate governance is
mechanisms used to determine and control the strategic direction and performance of
organizations.
a means to establish and maintain harmony between owners and top managers whose interests
may conflict.
ensuring that top managers' interests are aligned with the interests of stockholders.
T or F? Collusion is a form of cooperative strategy.
T
T or F? Firms who are competitors can form cooperative strategies
T
T or F? If a large Asian cosmetics firm was to engage in a 50-50 partnership with a large
American chemical company to form a new company focused on creating advanced skin care
products, this would be considered a joint venture.
T
3|Page
