MQM 385 Ch. 11 Exam Questions
Answers
Stakeholders - 🧠 ANSWER ✔✔individuals or groups with an interest, claim,
or stake in the company, in what it does and in how well it performs
Internal Stakeholders - 🧠 ANSWER ✔✔stockholders and employees,
including executive officers, other managers, and board members.
External Stakeholders - 🧠 ANSWER ✔✔customers, suppliers, creditors,
governments, unions, local communities, and general public
Stakeholder Impact Analysis - 🧠 ANSWER ✔✔-Identify the most important
stakeholders and give highest priority to pursuing strategies that satisfy
their needs.
1. Identify Stakeholders
, 2. Identify Stakeholders' interests and concerns
3. As a result, Identify what claims stakeholders are likely to make on the
organization
4. Identify the stakeholders who are most important from the organizations
perspective
5. Identify the resulting strategic challenges
Relationship between Profitability and Profit Growth - 🧠 ANSWER ✔✔the
relationship is a complex one because attaining future growth profit may
require investments that reduce the current rate of profitability
-Managers need to find the balance between these two
Agency Theory - 🧠 ANSWER ✔✔this theory looks at the problems that can
arise in a business relationship when one person delegates decision
making authority to another
Principal-Agent Relationship - 🧠 ANSWER ✔✔-a relationship is held to
arise whenever one party delegates decision making authority or control
over resources to another.
-Stockholders and CEO's are a great example
Answers
Stakeholders - 🧠 ANSWER ✔✔individuals or groups with an interest, claim,
or stake in the company, in what it does and in how well it performs
Internal Stakeholders - 🧠 ANSWER ✔✔stockholders and employees,
including executive officers, other managers, and board members.
External Stakeholders - 🧠 ANSWER ✔✔customers, suppliers, creditors,
governments, unions, local communities, and general public
Stakeholder Impact Analysis - 🧠 ANSWER ✔✔-Identify the most important
stakeholders and give highest priority to pursuing strategies that satisfy
their needs.
1. Identify Stakeholders
, 2. Identify Stakeholders' interests and concerns
3. As a result, Identify what claims stakeholders are likely to make on the
organization
4. Identify the stakeholders who are most important from the organizations
perspective
5. Identify the resulting strategic challenges
Relationship between Profitability and Profit Growth - 🧠 ANSWER ✔✔the
relationship is a complex one because attaining future growth profit may
require investments that reduce the current rate of profitability
-Managers need to find the balance between these two
Agency Theory - 🧠 ANSWER ✔✔this theory looks at the problems that can
arise in a business relationship when one person delegates decision
making authority to another
Principal-Agent Relationship - 🧠 ANSWER ✔✔-a relationship is held to
arise whenever one party delegates decision making authority or control
over resources to another.
-Stockholders and CEO's are a great example
