MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 108 Mcqs, each offering curated multiple-choice questions to sharpen your Managing for Sustainability knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
When company ownership is diffuse, |
| A. | a "free rider" problem discourages shareholder activism. |
| B. | the large number of shareholders ensures strong monitoring of managerial behavior because with a large enough group, there's almost always someone who will to incur the costs of monitoring management. |
| C. | few shareholders have a strong enough incentive to incur the costs of monitoring management. |
| D. | both a) and c) are correct |
| Answer» E. | |
| 2. |
When communicating a code of conduct |
| A. | Focus on values that should guide decision making |
| B. | Provide the same code of conduct to all departments regardless of its length. |
| C. | Refrain from changing the code of conduct regularly |
| D. | Fewer employees will read the code if it is short |
| Answer» B. Provide the same code of conduct to all departments regardless of its length. | |
| 3. |
In a public company with diffused ownership, the board of directors is entrusted with |
| A. | monitoring the auditors and safeguarding the interests of shareholders. |
| B. | monitoring the shareholders and safeguarding the interests of management. |
| C. | monitoring the management and safeguarding the interests of shareholders. |
| D. | none of the above |
| Answer» D. none of the above | |
| 4. |
The key weakness of the public corporation is |
| A. | too many shareholders, which makes it difficult to make corporate decision. |
| B. | relatively high corporate income tax rates. |
| C. | conflicts of interest between managers and shareholders. |
| D. | conflicts of interests between shareholders and bondholders. |
| Answer» D. conflicts of interests between shareholders and bondholders. | |
| 5. |
East India Company |
| A. | Was always a management agency for the British government |
| B. | had a continuous trade monopoly until 1873 |
| C. | Went out of existence at the time of Indian independence |
| D. | Largely set commercial and management practices for India |
| Answer» E. | |
| 6. |
Social obligation is the obligation of a business to meet its _______________. |
| A. | social and technological responsibilities |
| B. | economic and legal responsibilities |
| C. | technological and economic responsibilities |
| D. | economic and social responsibilities |
| Answer» C. technological and economic responsibilities | |
| 7. |
In what country do the three largest shareholders control, on average, about 60 percent of the shares of a public company? |
| A. | United States |
| B. | Canada |
| C. | Great Britain |
| D. | Italy |
| Answer» E. | |
| 8. |
In Japan, some corporations operate within the philosophy of 'kyosei'. The term 'kyosei' means: |
| A. | No man shall be richer than another man |
| B. | All stakeholders are equal |
| C. | Living and working for the common good |
| D. | If the corporation is bad, society is bad |
| Answer» D. If the corporation is bad, society is bad | |
| 9. |
In many countries with concentrated ownership |
| A. | the conflicts of interest between shareholders and managers are worse than in countries with diffuse ownership of firms. |
| B. | the conflicts of interest are greater between large controlling shareholders and small outside shareholders than between managers and shareholders. |
| C. | the conflicts of interest are greater between managers and shareholders than between large controlling shareholders and small outside shareholders. |
| D. | corporate forms of business organization with concentrated ownership are rare. |
| Answer» C. the conflicts of interest are greater between managers and shareholders than between large controlling shareholders and small outside shareholders. | |
| 10. |
Corporate governance structure |
| A. | varies a great deal across countries. |
| B. | has become homogenized following the integration of capital markets. |
| C. | has become homogenized due to cross-listing of shares of many public corporations. |
| D. | none of the above |
| Answer» B. has become homogenized following the integration of capital markets. | |
| 11. |
The reach of codes is |
| A. | Restricted to those obliged to conform by virtue of membership |
| B. | Applicable to all |
| C. | Applicable to the public only |
| D. | the same as the reach of the law |
| Answer» B. Applicable to all | |
| 12. |
When managerial self-dealings are excessive and left unchecked, |
| A. | they can have serious negative effects on share values |
| B. | they can impede the proper functions of capital markets. |
| C. | they can impede such measures as GDP growth. |
| D. | all of the above |
| Answer» E. | |
| 13. |
Executive pay in the UK was reviewed by: |
| A. | The Greenbury Committee |
| B. | The Hampel Committee |
| C. | The Cadbury Committee |
| D. | The Higgs Committee |
| Answer» B. The Hampel Committee | |
| 14. |
The public corporation |
| A. | is jointly owned by a (potentially) large number of shareholders. |
| B. | offers shareholders limited liability. |
| C. | separates the ownership and control of a firm's assets. |
| D. | all of the above |
| Answer» E. | |
| 15. |
Which of the following actions will not help directors to protect themselves from noncompliance with their obligations and responsibilities? |
| A. | keeping themselves fully informed about company affairs |
| B. | ensuring that regular management accounts are prepared by the company |
| C. | seeking professional help |
| D. | including a disclaimer clause in their service contracts |
| Answer» E. | |
| 16. |
An organization that is owned by shareholders but managed by agents on their behalfis conventionally known as the modern: |
| A. | Conglomerate |
| B. | Corporation |
| C. | Company |
| D. | Firm |
| Answer» C. Company | |
| 17. |
Directors may not be disqualified for |
| A. | continuing to trade when the company is insolvent |
| B. | persistent breaches of company legislation |
| C. | paying inadequate attention to the company finances |
| D. | being convicted of drunken driving |
| Answer» E. | |
| 18. |
The modern corporation has four characteristics. These are limited liability, legal personality, centralized management and: |
| A. | Fiduciary duty |
| B. | Stakeholders |
| C. | Shareholders |
| D. | Transferability |
| Answer» E. | |
| 19. |
The hand-of-government refers to the |
| A. | ability of the government to interfere in business negotiations |
| B. | role of corporations to be profitable within the law |
| C. | effect of national politics on business decisions |
| D. | impact of changing government regulations |
| Answer» C. effect of national politics on business decisions | |
| 20. |
In a ______________ organization, decision making is delegated as far down the chainof command as possible. |
| A. | Decentralized |
| B. | Creative |
| C. | Flexible |
| D. | Centralized |
| Answer» E. | |
| 21. |
Which of the following is NOT one of the primary elements of a strong organizational compliance program? |
| A. | A written code of conduct |
| B. | An ethics officer |
| C. | Significant financial expenditures |
| D. | A formal ethics training program |
| Answer» D. A formal ethics training program | |
| 22. |
_____________ is a document that outlines principles for doing business globally inthe areas of human rights, labor, the environment, and anticorruption. |
| A. | A code of ethics |
| B. | The Global Compact |
| C. | The Foreign Corrupt Practices Act |
| D. | Global Ethics |
| Answer» C. The Foreign Corrupt Practices Act | |
| 23. |
When a firm charges different prices to different groups of customers, it may beaccused of: |
| A. | cultural relativism |
| B. | money laundering |
| C. | facilitating payments |
| D. | price discrimination |
| Answer» B. money laundering | |
| 24. |
Under the concept of social obligation, the organization ________________. |
| A. | does what it can to meet the law, and a little bit more for stakeholders |
| B. | fulfills its obligation to the stakeholders, which makes it fulfill the law, too |
| C. | does the minimum required by law |
| D. | fulfills its obligation to the law and its stakeholders |
| Answer» D. fulfills its obligation to the law and its stakeholders | |
| 25. |
The ability to interpret and adapt successfully to different national,organizational, and professional cultures is called: |
| A. | national competitiveness. |
| B. | global development. |
| C. | cultural intelligence. |
| D. | stakeholder sensitivity. |
| Answer» D. stakeholder sensitivity. | |
| 26. |
_____________ is a document that outlines principles for doing business globally in the areas of human rights, labor, the environment, and anticorruption. |
| A. | A code of ethics |
| B. | The Global Compact |
| C. | The Foreign Corrupt Practices Act |
| D. | Global Ethics |
| Answer» C. The Foreign Corrupt Practices Act | |
| 27. |
A personality measure of person’s convictions is _______________. |
| A. | moral development |
| B. | ego strength |
| C. | locus of control |
| D. | social desirability |
| Answer» C. locus of control | |
| 28. |
Which of the following actions will not help directors to protect themselves from non-compliance with their obligations and responsibilities? |
| A. | keeping themselves fully informed about company affairs |
| B. | ensuring that regular management accounts are prepared by the company |
| C. | seeking professional help |
| D. | including a disclaimer clause in their service contracts |
| Answer» E. | |
| 29. |
An organization that is owned by shareholders but managed by agents on their behalf is conventionally known as the modern: |
| A. | Conglomerate |
| B. | Corporation |
| C. | Company |
| D. | Firm |
| Answer» C. Company | |
| 30. |
Better access to certain markets, differentiation of products, and the sale of pollution-control technology are ways in which better environmental performance can: |
| A. | increase revenue |
| B. | increase costs |
| C. | decrease revenue |
| D. | decrease costs |
| Answer» B. increase costs | |
| 31. |
In a ______________ organization, decision making is delegated as far down the chain of command as possible. |
| A. | Decentralized |
| B. | Creative |
| C. | Flexible |
| D. | Centralized |
| Answer» E. | |
| 32. |
Where an organization takes into account the effect its strategic decisions have on society, this is known as: |
| A. | Corporate governance |
| B. | Business policy |
| C. | Business ethics |
| D. | Corporate social responsibility |
| Answer» E. | |
| 33. |
The ________ dimension of social responsibility refers to a business's societal contribution of time, money, and other resources. |
| A. | Ethical |
| B. | Philanthropic |
| C. | Volunteerism |
| D. | Strategic |
| Answer» C. Volunteerism | |
| 34. |
Stakeholders are the individuals or groups that |
| A. | Have an interest in and are affected by company’s actions. |
| B. | Have a mere interest in an Organization. |
| C. | Are affected by company’s actions |
| D. | Above all. |
| Answer» B. Have a mere interest in an Organization. | |
| 35. |
The ecological footprint is an tool for ecological resources |
| A. | Accounting |
| B. | Management |
| C. | Decision making |
| D. | Financial |
| Answer» B. Management | |
| 36. |
Carbon footprints is used to determine the amount of offsets necessary by a business to sell their product as but is not used to determine carbon liability |
| A. | Carbon neutral |
| B. | Carbon dating |
| C. | Carbon cutting |
| D. | Carbon rating |
| Answer» C. Carbon cutting | |
| 37. |
Who uses the Triple Bottom Line? |
| A. | Businesses |
| B. | Non-profit organisations |
| C. | Government entities |
| D. | All of the above |
| Answer» E. | |
| 38. |
The Brundtland definition comprises of which three parts? |
| A. | Development, Needs and Future Responsibility |
| B. | Development, Issues and Future Generations |
| C. | Development, Needs and Future Generations |
| D. | Growth, Needs and Future Generations |
| Answer» D. Growth, Needs and Future Generations | |
| 39. |
Eco-tracking tools need to be available which |
| A. | Do not allow you to trace environmental footprint |
| B. | Avoids data collection |
| C. | Set-up an environmental management system |
| D. | Help in decision making |
| Answer» D. Help in decision making | |
| 40. |
Social sustainability refers to what? |
| A. | The concept of the enterprise supporting jobs and delivering income to communities in the long term |
| B. | Stewardship of resources and managing and conserving the environment |
| C. | The concept of the enterprise supporting jobs and delivering income to communities in the short term |
| D. | Sharing benefits fairly and equitably and respecting the quality of life of communities and of human rights |
| Answer» E. | |
| 41. |
Adverse social impacts could be in the form of |
| A. | Loss of land |
| B. | loss of structures |
| C. | Loss of livelihood |
| D. | All of the above |
| Answer» E. | |
| 42. |
A sustainability rep~rt is the key platform for communicating ., and impacts whether positive or negative |
| A. | Sustainability performance |
| B. | Management decisions |
| C. | Financial analysis |
| D. | Information |
| Answer» B. Management decisions | |
| 43. |
Dematerialisation is being encouraged through the ideas of industrial ecology _and |
| A. | Ecodesign |
| B. | Ecolabelling |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» D. None of the above | |
| 44. |
The term sustainability refers to |
| A. | Maintaining resource use at current or higher levels |
| B. | Keeping the natural environment and human society in a happy, healthy and functional state |
| C. | Holding or increasing the current quality of human life |
| D. | Always focusing on fulfiling short-term needs |
| Answer» B. Keeping the natural environment and human society in a happy, healthy and functional state | |
| 45. |
A chemical industry is not a cause of |
| A. | Air pollution |
| B. | Noise pollution |
| C. | Water pollution |
| D. | Nuclear pollution |
| Answer» E. | |
| 46. |
Production, transformation and use of energy are the major problems of: |
| A. | Industrial activity |
| B. | Sustainable development |
| C. | Global warming |
| D. | Acid rain |
| Answer» B. Sustainable development | |
| 47. |
A _____________ is a formal statement of an organization primary values and theethical rules it expects its employees to follow |
| A. | mission statement |
| B. | statement of purpose |
| C. | code of ethics |
| D. | vision statement |
| Answer» D. vision statement | |
| 48. |
'Meeting the needs of the present compromising the ability of future generation to meet their own need' is |
| A. | Brundtland |
| B. | Mahatma Gandhi |
| C. | Maathai |
| D. | Sunderlal Bahugana |
| Answer» B. Mahatma Gandhi | |
| 49. |
Which of the following organizational structural characteristics would most likely result in managerial ethical behavior? |
| A. | few job descriptions |
| B. | formal rules |
| C. | mixed messages from authority figures |
| D. | All of these |
| Answer» C. mixed messages from authority figures | |
| 50. |
Which of the following perspectives takes the strongest stance in support of sustainability? |
| A. | Communalist |
| B. | Free market |
| C. | Deep ecology |
| D. | Cornucopian |
| Answer» D. Cornucopian | |