Corporate Governance Quiz

Who is responsible for leading and managing the organization to achieve its goals?

• Chairman of the Board

• Shareholders

• CEO

• Stakeholders

According to Agency Theory, what is the assumed relationship between agents and principals?

• Agents always act in the owners' best interests

• Agents and principals share identical goals

• Agents may act in their own interests, conflicting with owners

• Agents are naturally inclined to be responsible stewards

Which theory emphasizes considering the concerns of everyone affected by a corporation, not just shareholders?

• Resource Dependency Theory

• Agency Theory

• Stakeholder Theory

• Stewardship Theory

What function of the board focuses on overseeing management performance through metrics like financial ratios and budgets?

• Accountability

• Setting Policy

• Monitoring and Supervision

• Strategy Formulation

Resource Dependency Theory suggests board members should:

• Ignore external resources

• Focus solely on maximizing shareholder wealth

• Develop and manage resources to build competitive advantage

• Avoid strategic networks

Enumerate the Key Players in Corporate Governance mentioned in the material.

List the Four Functions of the Board.

Provide at least Three examples of stakeholders mentioned or implied in the material.

• Employees

• Suppliers

• Government

• Society

According to the material, mention at least three resources an organization depends on, based on Resource Dependency Theory.

• Raw Materials

• Labor

• Executive Management

• Strategic Networks

Name the Four Theoretical Perspectives discussed in the material.