MBA 705 Module 3 Quiz
(Ch 4 & 5) Questions and
Complete Solutions
Graded A+
Denning [Date] [Course title]
,Objectives are specific, often quantified, versions of goals.
True or False? - Answer: True
Goals are verifiable and specific, and are developed so that management can measure performance.
True or False? - Answer: False
Creditors and suppliers typically share the same goals for the organization.
True or False? - Answer: False
Social responsibility refers to an individual's responsibility to make business decisions that are legal,
honest, moral, and fair.
True or False? - Answer: False
The utilitarian view of ethics suggests that anticipated outcomes and consequences should be the
primary considerations when evaluating an ethical dilemma.
True or False? - Answer: True
Adverse selection exists when the parties in an arrangement do not share equally in the risks and
benefits.
True or False? - Answer: False
A situation in which a firm's managers fail to act in the best interest of the shareholders is known as the
stakeholder dilemma.
True or False? - Answer: True
The triple bottom line refers to the notion that firms must maintain and improve social and ecological
performance in addition to economic performance.
True or False? - Answer: True
Over the past several decades, the composition of the typical board has shifted from one controlled by
insiders to one controlled by outsiders.
, True or False? - Answer: False
When additional insiders are added to outsider-dominated boards, CEO dismissal is more likely when
corporate performance declines.
True or False? - Answer: False
When additional outsiders are added to insider-dominated boards, outsiders are more likely to pressure
for corporate restructuring when performance is poor.
True or False? - Answer: True
Many companies limit the number of board memberships their own board members may hold.
True or False? - Answer: True
Any purchase of a controlling quantity of shares of a firm by an individual, a group of investors, or
another organization is known as a leveraged buyout (LBO).
True or False? - Answer: False
Corporate takeovers have been promoted as a system of checks and balances for firm management.
True or False? - Answer: True
Corporate takeovers have been supported because of their ability to reduce the debt of acquired firms.
True or False? - Answer: False
Individuals or groups who are affected by or can influence an organization's operations are called
a. shareholders.
b. stakeholders.
c. organizational constituencies.
d. None of the above. - Answer: B
The desired ends toward which efforts are directed comprise
(Ch 4 & 5) Questions and
Complete Solutions
Graded A+
Denning [Date] [Course title]
,Objectives are specific, often quantified, versions of goals.
True or False? - Answer: True
Goals are verifiable and specific, and are developed so that management can measure performance.
True or False? - Answer: False
Creditors and suppliers typically share the same goals for the organization.
True or False? - Answer: False
Social responsibility refers to an individual's responsibility to make business decisions that are legal,
honest, moral, and fair.
True or False? - Answer: False
The utilitarian view of ethics suggests that anticipated outcomes and consequences should be the
primary considerations when evaluating an ethical dilemma.
True or False? - Answer: True
Adverse selection exists when the parties in an arrangement do not share equally in the risks and
benefits.
True or False? - Answer: False
A situation in which a firm's managers fail to act in the best interest of the shareholders is known as the
stakeholder dilemma.
True or False? - Answer: True
The triple bottom line refers to the notion that firms must maintain and improve social and ecological
performance in addition to economic performance.
True or False? - Answer: True
Over the past several decades, the composition of the typical board has shifted from one controlled by
insiders to one controlled by outsiders.
, True or False? - Answer: False
When additional insiders are added to outsider-dominated boards, CEO dismissal is more likely when
corporate performance declines.
True or False? - Answer: False
When additional outsiders are added to insider-dominated boards, outsiders are more likely to pressure
for corporate restructuring when performance is poor.
True or False? - Answer: True
Many companies limit the number of board memberships their own board members may hold.
True or False? - Answer: True
Any purchase of a controlling quantity of shares of a firm by an individual, a group of investors, or
another organization is known as a leveraged buyout (LBO).
True or False? - Answer: False
Corporate takeovers have been promoted as a system of checks and balances for firm management.
True or False? - Answer: True
Corporate takeovers have been supported because of their ability to reduce the debt of acquired firms.
True or False? - Answer: False
Individuals or groups who are affected by or can influence an organization's operations are called
a. shareholders.
b. stakeholders.
c. organizational constituencies.
d. None of the above. - Answer: B
The desired ends toward which efforts are directed comprise
