Global convergence; Diffused ownership is the opposite of concentrated ownership Custom Essay

In regards to global convergence:
Choose one answer.
a. Advocates argue that globalization will unleash a “survival-of the-fittest” process.
b. Advocates claim firms will be forced to adopt globally the best practices.
c. Others contend that governance practices will continue to diverge throughout the world.
d. The text indicates that complete divergence in corporate governance is probably unrealistic.
e. All of the above.

Strategists should:
Choose one answer.
a. Understand the nature of principal–agent and principal–principal conflicts to create better governance mechanisms.
b. Develop firm-specific capabilities to differentiate on governance dimensions.
c. Understand the rules, anticipate changes, and be aware of differences, especially when doing business abroad.
d. Use an understanding of corporate governance to help answer the four fundamental questions in strategy.
e. All of the above.

Diffused ownership is the opposite of concentrated ownership, more common in:
Choose one answer.
a. North America.
b. South America.
c. Asia.
d. Africa.
e. The Pacific.

Which of the following is not true regarding large institutional investors?
Choose one answer.
a. They include professionally managed mutual funds and pension pools.
b. They now own over 50 percent of the stock in major corporations.
c. Are the controlling stockholders in China.
d. Their ability to dump the stock is limited because selling out depresses the share price and harms the institutions.
e. Are more likely to exercise shareholder rights than smaller investors.

In regards to family ownership, all of the following are true except:
Choose one answer.
a. Most small firms in the world are owned and controlled by families.
b. The vast majority of large corporations throughout continental Europe, Asia, Latin America, and Africa no longer feature concentrated family ownership and control.
c. Family ownership and control may provide better incentives for the firm to focus on long-run performance.
d. Such ownership may also minimize the conflict between owners and professional managers typically encountered in widely owned firms.
e. Family ownership and control may lead to the selection of less qualified managers who happen to be the sons, daughters, and relatives of owners.

Which of the following is true regarding CEO duality?
Choose one answer.
a. From an agency theory standpoint, if the board is to supervise agents such as the CEO, it seems imperative that the board be chaired by the same individual.
b. In US firms with CEO duality, the trend now is to appoint a lead independent director, who chairs the sessions held by outside directors that do not involve company executives.
c. A corporation led by two top leaders—a board chairman and a CEO – will at least have unity of command and experience less top-level conflict.
d. East Asia and Latin America where most firms have concentrated family ownership and control, there is less CEO duality.
e. Firms around the world are being pressured to combine the two top jobs.

CSR tends to be the least concerned with improving:
Choose one answer.
a. Global sustainability.
b. Shareholder wealth maximization.
c. Rising levels of population.
d. Inequity.
e. High levels of poverty in some countries.