BADM 509 Terms Exam Questions and Answers Grade
A+
purpose - Answer-the reason why an organization exists
mission statement - Answer-a short statement of why an organization exists. It
often includes reference to what the organization does as well as who the
organization serves.
corporate governance - Answer-the system by which organizations are directed
and controlled. Corporate governance deals directly with issues related to the
purpose of the organization and how it is controlled.
Stakeholder Theory - Answer-a theory of corporate governance that suggests that
firms must account for multiple constituencies impacted by business entities like
employees, suppliers, local communities, creditors, shareholders, and others. It is
sometimes contrasted with shareholder value.
Shareholder Value - Answer-a perspective that suggests that the primary
responsibility of the firm is to maximize returns for shareholders.
Organizational Effectiveness - Answer-the extent to which an organization fulfills
its intended purpose. A broader measure of performance that goes beyond
efficiency and financial measures of success.
What is a Balanced Scorecard? - Answer-A performance management tool used by
managers to track key performance indicators (KPIs) across various outcomes.
What are the typical metrics included in a Balanced Scorecard? - Answer-Financial
performance, operational efficiency, employee learning and growth, and
stakeholder satisfaction.
Rational System - Answer-a way of thinking about organizations that treats the
organization as similar to a machine that operates efficiently to reach a well-
defined goal.
, Stakeholder Perspective - Answer-in addition to shareholders, firms have to
interact with and meet the needs of employees, creditors, suppliers, customers,
governments, and communities
Shareholder Perspective's focus is - Answer-Narrow
Short-term
Myopic decision-making
Stakeholder Perspective's focus is - Answer-Balancing competing demands of
stakeholders; recognizes complexities; promotes longer-term focus among
managers.
Shareholder Value Perspective is what kind of system? - Answer-Rational System
Stakeholder Value Perspective is what kind of system? - Answer-Natural System
and Open System
What functions does a mission statement serve? (3) - Answer-Strategy & Planning
Values & Ethics
Purpose & Engagement
Agency Theory - Answer-a perspective on organizations that is focused on
reducing costs associated with the principal-agent problem where sometimes an
agent has incentives to not act in the best interest of the principal.
Principal - Answer-Owners of the firm and/or shareholders
Agent - Answer-Managers hired to act on behalf of the principal(s)
Principal-Agent Relationship - Answer-Someone hires an agent to act in their best
interest.
What are some examples of the Principal-Agent relationship? - Answer-Financial
Planner
Attorney
Business Agent (sports, music, acting)
A+
purpose - Answer-the reason why an organization exists
mission statement - Answer-a short statement of why an organization exists. It
often includes reference to what the organization does as well as who the
organization serves.
corporate governance - Answer-the system by which organizations are directed
and controlled. Corporate governance deals directly with issues related to the
purpose of the organization and how it is controlled.
Stakeholder Theory - Answer-a theory of corporate governance that suggests that
firms must account for multiple constituencies impacted by business entities like
employees, suppliers, local communities, creditors, shareholders, and others. It is
sometimes contrasted with shareholder value.
Shareholder Value - Answer-a perspective that suggests that the primary
responsibility of the firm is to maximize returns for shareholders.
Organizational Effectiveness - Answer-the extent to which an organization fulfills
its intended purpose. A broader measure of performance that goes beyond
efficiency and financial measures of success.
What is a Balanced Scorecard? - Answer-A performance management tool used by
managers to track key performance indicators (KPIs) across various outcomes.
What are the typical metrics included in a Balanced Scorecard? - Answer-Financial
performance, operational efficiency, employee learning and growth, and
stakeholder satisfaction.
Rational System - Answer-a way of thinking about organizations that treats the
organization as similar to a machine that operates efficiently to reach a well-
defined goal.
, Stakeholder Perspective - Answer-in addition to shareholders, firms have to
interact with and meet the needs of employees, creditors, suppliers, customers,
governments, and communities
Shareholder Perspective's focus is - Answer-Narrow
Short-term
Myopic decision-making
Stakeholder Perspective's focus is - Answer-Balancing competing demands of
stakeholders; recognizes complexities; promotes longer-term focus among
managers.
Shareholder Value Perspective is what kind of system? - Answer-Rational System
Stakeholder Value Perspective is what kind of system? - Answer-Natural System
and Open System
What functions does a mission statement serve? (3) - Answer-Strategy & Planning
Values & Ethics
Purpose & Engagement
Agency Theory - Answer-a perspective on organizations that is focused on
reducing costs associated with the principal-agent problem where sometimes an
agent has incentives to not act in the best interest of the principal.
Principal - Answer-Owners of the firm and/or shareholders
Agent - Answer-Managers hired to act on behalf of the principal(s)
Principal-Agent Relationship - Answer-Someone hires an agent to act in their best
interest.
What are some examples of the Principal-Agent relationship? - Answer-Financial
Planner
Attorney
Business Agent (sports, music, acting)
