Reference no: EM132305527
1. A legally binding contract that can be terminated at the option of one of the parties is called:
a. an executed contract
b. a formal contract with an escape clause
c. a voidable contract
d. a void contract
e. a parol evidence contract
2. Yoshi believes firmly in the positive view. Which of the following statements best sums up Yoshi’s legal philosophy?
a. The law attempts to prohibit all "bad" behavior.
b. Any law is real and enforceable if it has been created in accordance with recognized procedures.
c. Valid laws prohibit all "morally objectionable" behavior.
d. An action that is unethical is also considered illegal in the U.S.
3. Which of the following is a term for the maximization of shareholder value?
a. Shareholder primacy
b. Corporate allocation
c. Shareholder importance
d. Value of shares maximization
4. Which of the following statements is true about a process map?
It specifies which participants are involved in a process
It describes the data that is being processed in a process
It shows the organizational units that are involved in a process
It provides insight into the various steps that are taken within a process
It shows which steps are alternatives of each other
5. According to economist Michael C. Jensen, long-term market value of an organization cannot be maximized if:
a. management focuses on long-term value creation over short-term profits.
b. companies chose social responsibility over shareholders.
c. management ignores or mistreats any important constituency.
d. outperforming competition has both a long-term and short-term focus.
6. Which of the following statements about socially responsible funds is NOT true?
a. Investment in socially responsible funds has grown in Europe.
b. Few large mutual fund companies or 401(k) retirement plans offer socially responsible options for investment.
c. The Coalition for Environmentally Responsible Economics promotes investor guidelines focused on environmental awareness in the context of corporate activities.
d. Investment in socially responsible funds has grown in the United States.