Question 1
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. Authority
B. Culture
C. Contracts
D. Influence
E. Power
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. Routines
B. Culture
C. Influence
D. Mind-sets
E. Codes
Question 3
Which of the following refers to when a firm with a patent uses its market power to set a high price - cost margin?
A. Cost power
B. Limiting power
C. Legal power
D. Structural power
E. Pricing power
Question 4
Which of the following is least true with regard to presidential power?
A. The president's prestige among the public is a source of presidential power
B. Presidential power is the ability to influence the people who make and implement government policies
C. 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
D. The bargaining advantage that comes with the presidential office enables the president to persuade others to work in his interest
E. Presidential power only consists of the president taking direct action on some front
Question 5
Which of the following is true about culture?
A. Culture increases agency costs
B. Culture has no effect on costs
C. Culture reduces bargaining costs
D. Culture increases economic costs
E. Culture reduces transactions costs
Question 6
Which of the following is the most visible example of a firm's social context?
A. Entry-deterring behaviors
B. Contracting
C. Regulation
D. Employment practices
E. Formal controls
Question 7
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. Authority
B. Culture
C. Influence
D. Power
E. Contracts
Question 8
What technique did Google use to preserve its "evil-free" culture when going public with an initial public offering in 2004?
A. Drastically underpriced its shares (by 200%)
B. Used an IPO underwriter
C. Used a "Dutch auction"
D. Allow clients to purchase underpriced IPO shares
E. Committed to sell a certain number of shares at a set price
Question 9
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. Knowledge exchange
C. Power exchange
D. Formal exchanges
E. Authority exchange
Question 10
Which of the following statements is least true regarding the accumulation of power?
A. The major purpose of corporate governance is not to reign in the accumulation of power by CEOs
B. The accumulation of power is harmful when there are high agency costs in coordinating among levels of upper management
C. The accumulation of power is helpful when the firm's environment is relatively stable
D. The accumulation of power is helpful when there are high agency costs in coordinating among managers and lower-level workers
E. The accumulation of power is harmful when the firm's environment is relatively unstable