Chapter 12—Strategic Leadership
TRUE/FALSE
1. According to the chapter Opening Case, the average tenure of CEOs has been declining in the past five
years.
ANS: T PTS: 1 DIF: Easy REF: 351
OBJ: 12-01 TYPE: application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence |
Dierdorff & Rubin: Managing administration & control
2. The chapter Opening Case reports on a survey which found that almost 90% of boards of corporations
had a succession plan for their CEO.
ANS: F PTS: 1 DIF: Medium REF: 351
OBJ: 12-01 TYPE: application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence |
Dierdorff & Rubin: Managing administration & control
3. According to the chapter Opening Case, Apple has a succession plan for CEO Steve Jobs and
anticipates an easy transition to a new CEO.
ANS: F PTS: 1 DIF: Medium REF: 351
OBJ: 12-01 TYPE: application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence |
Dierdorff & Rubin: Managing administration & control
4. As noted in the chapter Opening Case, some companies have effective succession plans. For example,
Ellen Kullman was identified as a potential CEO several years before she assumed the position at
DuPont.
ANS: T PTS: 1 DIF: Medium REF: 351
OBJ: 12-01 TYPE: application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence |
Dierdorff & Rubin: Managing administration & control
5. Strategic leadership is the ability to anticipate, envision, maintain flexibility, and empower others to
create strategic change as necessary.
ANS: T PTS: 1 DIF: Medium REF: 352
OBJ: 12-01 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Leadership Principles |
Dierdorff & Rubin: Learning, motivation, & leadership
6. The most critical ability of a strategic leader is the ability to attract and then manage human capital.
ANS: T PTS: 1 DIF: Easy REF: 353
OBJ: 12-01 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Leadership Principles |
Dierdorff & Rubin: Managing human capital
, 7. The CEO is the individual with primary responsibility for effective strategic leadership within an
organization.
ANS: T PTS: 1 DIF: Easy REF: 354
OBJ: 12-01 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Leadership Principles |
Dierdorff & Rubin: Learning, motivation, & leadership
8. Transformational leadership is the most effective strategic leadership style.
ANS: T PTS: 1 DIF: Easy REF: 354
OBJ: 12-01 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Leadership Principles |
Dierdorff & Rubin: Learning, motivation, & leadership
9. Because of the challenges top executives face, they often are more effective when they operate as top
management teams.
ANS: T PTS: 1 DIF: Easy REF: 355
OBJ: 12-01 TYPE: comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Leadership Principles |
Dierdorff & Rubin: Learning, motivation, & leadership
10. In addition to determining new strategic initiatives, top-level managers also develop the appropriate
organizational structure and reward systems of a firm.
ANS: T PTS: 1 DIF: Medium REF: 355
OBJ: 12-02 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Leadership Principles |
Dierdorff & Rubin: Learning, motivation, & leadership
11. The decision making discretion of top-level managers is determined partly by external environmental
factors such as the industry structure, the industry’s rate of growth, and the degree to which products
can be differentiated.
ANS: T PTS: 1 DIF: Medium REF: 355 (Figure 12.2)
OBJ: 12-02 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence |
Dierdorff & Rubin: Managing decision-making processes
12. Firm size, firm age, the executive’s tolerance for ambiguity, and his or her commitment to strategic
outcomes are all factors that may affect managerial discretion.
ANS: T PTS: 1 DIF: Medium REF: 355 (Table 12.2)
OBJ: 12-02 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence |
Dierdorff & Rubin: Managing decision-making processes
13. External environmental factors that may affect managerial discretion include industry structure, rate of
market growth, and degree to which products an be differentiated.
ANS: T PTS: 1 DIF: Hard REF: 355 (Table 12.2)
OBJ: 12-02 TYPE: comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence |
TRUE/FALSE
1. According to the chapter Opening Case, the average tenure of CEOs has been declining in the past five
years.
ANS: T PTS: 1 DIF: Easy REF: 351
OBJ: 12-01 TYPE: application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence |
Dierdorff & Rubin: Managing administration & control
2. The chapter Opening Case reports on a survey which found that almost 90% of boards of corporations
had a succession plan for their CEO.
ANS: F PTS: 1 DIF: Medium REF: 351
OBJ: 12-01 TYPE: application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence |
Dierdorff & Rubin: Managing administration & control
3. According to the chapter Opening Case, Apple has a succession plan for CEO Steve Jobs and
anticipates an easy transition to a new CEO.
ANS: F PTS: 1 DIF: Medium REF: 351
OBJ: 12-01 TYPE: application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence |
Dierdorff & Rubin: Managing administration & control
4. As noted in the chapter Opening Case, some companies have effective succession plans. For example,
Ellen Kullman was identified as a potential CEO several years before she assumed the position at
DuPont.
ANS: T PTS: 1 DIF: Medium REF: 351
OBJ: 12-01 TYPE: application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence |
Dierdorff & Rubin: Managing administration & control
5. Strategic leadership is the ability to anticipate, envision, maintain flexibility, and empower others to
create strategic change as necessary.
ANS: T PTS: 1 DIF: Medium REF: 352
OBJ: 12-01 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Leadership Principles |
Dierdorff & Rubin: Learning, motivation, & leadership
6. The most critical ability of a strategic leader is the ability to attract and then manage human capital.
ANS: T PTS: 1 DIF: Easy REF: 353
OBJ: 12-01 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Leadership Principles |
Dierdorff & Rubin: Managing human capital
, 7. The CEO is the individual with primary responsibility for effective strategic leadership within an
organization.
ANS: T PTS: 1 DIF: Easy REF: 354
OBJ: 12-01 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Leadership Principles |
Dierdorff & Rubin: Learning, motivation, & leadership
8. Transformational leadership is the most effective strategic leadership style.
ANS: T PTS: 1 DIF: Easy REF: 354
OBJ: 12-01 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Leadership Principles |
Dierdorff & Rubin: Learning, motivation, & leadership
9. Because of the challenges top executives face, they often are more effective when they operate as top
management teams.
ANS: T PTS: 1 DIF: Easy REF: 355
OBJ: 12-01 TYPE: comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Leadership Principles |
Dierdorff & Rubin: Learning, motivation, & leadership
10. In addition to determining new strategic initiatives, top-level managers also develop the appropriate
organizational structure and reward systems of a firm.
ANS: T PTS: 1 DIF: Medium REF: 355
OBJ: 12-02 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Leadership Principles |
Dierdorff & Rubin: Learning, motivation, & leadership
11. The decision making discretion of top-level managers is determined partly by external environmental
factors such as the industry structure, the industry’s rate of growth, and the degree to which products
can be differentiated.
ANS: T PTS: 1 DIF: Medium REF: 355 (Figure 12.2)
OBJ: 12-02 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence |
Dierdorff & Rubin: Managing decision-making processes
12. Firm size, firm age, the executive’s tolerance for ambiguity, and his or her commitment to strategic
outcomes are all factors that may affect managerial discretion.
ANS: T PTS: 1 DIF: Medium REF: 355 (Table 12.2)
OBJ: 12-02 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence |
Dierdorff & Rubin: Managing decision-making processes
13. External environmental factors that may affect managerial discretion include industry structure, rate of
market growth, and degree to which products an be differentiated.
ANS: T PTS: 1 DIF: Hard REF: 355 (Table 12.2)
OBJ: 12-02 TYPE: comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence |
