1. For the past 28 years, ABC, Inc. has made a significant investment of time, money, and other resources to increase the literacy rate in adult Americans. This represents which of these principles of successful collaborative social initiatives?

• A. Weigh government influence.
• B. Identify a long-term durable mission.
• C. Assemble and value the total package of benefits.
• D. Leverage core capabilities.

2. According to stakeholder theory, in a survey of over 2000 directors from over 290 U.S. companies, which of these stakeholders was perceived to be least important?

• A. Government
• B. Employees
• C. Stockholders
• D. Society

3. Which law revised and strengthened auditing and account standards?

• A. Truth in Lending Act of 1968
• B. National Environmental Policy Act of 1969
• C. Federal Fair Trade Act of 1986
• D. Sarbanes-Oxley Act of 2002

4. Which of these is true about Sarbanes-Oxley Act of 2002?

• A. The directors and executive officers are required to trade the company's 401(k) plan, profit sharing plan and retirement plan during the blackout period
• B. The act requires that the audit committee must be composed entirely of inside officers.
• C. Companies are required to extend personal loans to executives and directors.
• D. The CEO and CFO must verify every report containing the company's financial statements.

5. A major consequence of the Sarbanes-Oxley Act of 2002 has been the

• A. political fallout in congress
• B. outsourcing of jobs in lower wage countries
• C. super growth in accounting firms in the U.S.
• D. reorganizing of the governance structure of American corporations

6. The most critical quality of ethical decision making is

• A. economics
• B. expeditions
• C. objectivity
• D. consistency

7. Judging the appropriateness of a particular action based on a goal to provide the greatest good for the greatest number of people is what ethics approach?

• A. Moral rights approach
• B. Social justice approach
• C. Business ethics approach
• D. Utilitarian approach

8. Judging the appropriateness of a particular action based on equity, fairness, and impartiality in the distribution of rewards and costs among individuals and groups is what ethics approach used by managers?

• A. Utilitarian approach
• B. Business ethics approach
• C. Moral rights approach
• D. Social justice approach

9. A broadly framed but enduring statement of a firm's intent is defined as the company

• A. vision
• B. credo
• C. slogan
• D. mission

10. This statement of a company's philosophy usually appears within the mission statement and specifies basic beliefs of a firm.

• A. Company slogan
• B. Company sponsor
• C. Company commercial
• D. Company creed

11. This statement presents the firm's strategic intent that focuses the energies and resources of the company on achieving a desirable future.

• A. Mission statement
• B. Values statement
• C. Company statement
• D. Vision statement

12. The strategic decision makers in the firm are responsible for

• A. rewards
• B. daily operations
• C. the firm's accounting practices
• D. the firm's mission

13. The idea that businesses have a duty to serve society as well as the financial interest of stockholders is called

• A. going green
• B. corporate audit
• C. corporate services
• D. corporate social responsibility

14. Which of the following strategic decision makers implement the overall strategy?

• A. Board of directors
• B. Business managers
• C. Functional managers
• D. Corporate managers

15. Which level of strategy uses a portfolio approach?

• A. Business
• B. Operational
• C. Corporate
• D. Functional

16. Of the three levels of strategy that are part of an organizations decision-making hierarchy, which level develops annual objectives and short-term strategies in such areas as production, operations, and research and development, finance and accounting, marketing, and human relations?

• A. Corporate
• B. Business
• C. Management
• D. Functional

17. The behavioral consequences of strategic management are similar to those of

• A. authoritative decision making
• B. centralized decision making
• C. autocratic decision making
• D. participative decision making

18. What do strategic managers call a flow of information through interrelated stages of analysis toward the achievement of an aim?

• A. Strategic control
• B. Process
• C. Continuous improvement
• D. Long-term objective