Question 1 Which of the following is the most visible example of a firm's social context?
A. Contracting
B. Entry-deterring behaviors
C. Employment practices
D. Regulation
E. Formal controls
Question 2 What term best describes a set of values, beliefs, and norms of behavior shared by a firm's members that influence employee preferences and behaviors?
A. Culture
B. Codes
C. Mind-sets
D. Routines
E. Influence
Question 3 Which of the following terms best describes ability that stems from the explicit contractual decision-making and dispute-resolution rights that a firm (or some other source) grants to an individual?
A. Culture
B. Authority
C. Power
D. Influence
E. Contracts
Question 4 Which of the following is true about culture?
A. Culture has no effect on costs
B. Culture reduces bargaining costs
C. Culture increases economic costs
D. Culture reduces transactions costs
E. Culture increases agency costs
Question 5 Which of the following statements is least true regarding the accumulation of power?
A. The accumulation of power is helpful when the firm's environment is relatively stable
B. The accumulation of power is harmful when the firm's environment is relatively unstable
C. The accumulation of power is helpful when there are high agency costs in coordinating among managers and lower-level workers
D. The major purpose of corporate governance is not to reign in the accumulation of power by CEOs
E. The accumulation of power is harmful when there are high agency costs in coordinating among levels of upper management
Question 6 Which of the following refers to when a firm with a patent uses its market power to set a high price - cost margin?
A. Pricing power
B. Structural power
C. Legal power
D. Cost power
E. Limiting power
Question 7 Which of the following terms best describes a transfer between two or more parties or resources, or rights to control resources, which occurs outside the terms of a market context?
A. Social exchange
B. Authority exchange
C. Knowledge exchange
D. Power exchange
E. Formal exchanges
Question 8 Which of the following terms best describes an individual actor's ability to accomplish his or her goals by using resources obtained through non-contractual exchange relationships?
A. Contracts
B. Culture
C. Power
D. Influence
E. Authority
Question 9 Which of the following is least true with regard to presidential power?
A. Presidential power only consists of the president taking direct action on some front
B. The president's prestige among the public is a source of presidential power
C. Presidential power is the ability to influence the people who make and implement government policies
D. A source of presidential power is professional reputation, which comprises the expectations of professional politicians, bureaucrats, and others in the political community regarding the president's power and his willingness to use it
E. The bargaining advantage that comes with the presidential office enables the president to persuade others to work in his interest
Question 10 What technique did Google use to preserve its "evil-free" culture when going public with an initial public offering in 2004?
A. Used an IPO underwriter
B. Committed to sell a certain number of shares at a set price
C. Drastically underpriced its shares (by 200%)
D. Used a "Dutch auction"
E. Allow clients to purchase underpriced IPO shares