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