1) Some analysts believe that business’s social legitimacy is fragile.

True

False

2) Shareholders’ control is manifested primarily in the right to select the CEO of the company.

True

False

3) The major condition of modern corporations that contributes to the corporate governance problem is the separation of ownership from control.

True

False

4) Wages have grown faster than CEO salaries over the past decade.

True

False

5) The issue at the heart of the Sarbanes-Oxley Act is protection for whistle blowers.

True

False

6) Congruence between the organization’s activities and society’s expectations is called

A) Alignment

B) Legitimacy

C) Social norms

d) Acceptability

7) The dynamic process by which business seeks to perpetuate its acceptance is called

Advertising

Marketing

Legitimation

Embedding

8) The method by which a firm is being governed, directed, administered, or controlled is

Corporate governance

Management

Management by objectives

Management by decree

9) Shareholders are

Owners of the corporation

Creditors of the corporation

Anyone who is affected by the corporation

Employees of the corporation

10) The group that is elected by shareholders to govern and oversee management is the

Investment council

Board of directors

Board of trustees

Governing council