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Chapter Quiz
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1
In contemporary approaches to strategic control, the relationships between strategy formulation, implementation, and control are not interactive.
A)True
B)False
2
Behavioral control asks if the organization is doing things right; ________ control is primarily concerned with doing the right thing.
A)internal
B)traditional
C)boundary
D)informational
3
Effective leaders understand that corporate __________ is important because it exists in every organization and is a pervasive influence that is an important lever of strategic control.
A)culture
B)structure
C)rewards
D)behavior
4
An example of using ________ to minimize improper and unethical conduct is exemplified by Cadbury Schweppes requirement that all payments be recorded on the company's books in order to control the use of bribes.
A)boundaries
B)culture
C)governance
D)rewards and incentives
5
Which form of behavioral control do most state-operated Department of Motor Vehicles use when issuing or renewing driver licenses?
A)culture
B)rewards
C)rules
D)governance
6
In most environments, organizations should strive to provide a system of rewards and incentives, coupled with a culture strong enough that boundaries do not become internalized.
A)True
B)False
7
Agency theory is concerned with problems that arise when there are conflicting goals between the ___________ and the ___________of a corporation.
A)stockholders and employees
B)management and stockholders
C)management and employees
D)stockholders and stakeholders
8
Shareholders of a corporation are more likely to prefer diversification initiatives than are its executives (agents).
A)True
B)False
9
A key component of top-ranked boards is strong director dependency ties to the CEO.
A)True
B)False
10
Poison pills, greenmail, and golden parachutes are incumbent management defense tactics that prevent ________ from effectively reigning in opportunistic behavior by executives.
A)auditors
B)the media
C)the takeover constraint
D)banks and analysts





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