Question:

Knowledge that is known to a specific set of people who understand what particular references mean, whereas people outside of that group don’t know what they mean is known as:

A.

Clique knowledge

B.

Elite knowledge

C.

Cultural knowledge

D.

Symbolic knowledge

Answer» d. Symbolic knowledge

Question:

The corporate governance structure of a company reflects the individual companies’

A.

Cultural and economic system.

B.

Legal and business system.

C.

Social and regulatory system.

D.

All of the above.

Answer» a. Cultural and economic system.

Question:

Under which theory both internal and external corporate governance mechanisms are Intended to induce managerial actions that maximize profit and shareholder value.

A.

Shareholder theory.

B.

Agency theory.

C.

Stakeholder theory.

D.

Corporate governance theory.

Answer» d. Corporate governance theory.

Question:

Employees who work in an autonomous fashion are:

A.

Given freedom to make decisions

B.

Closely monitored

C.

Heavily influenced by organizational culture

D.

Motivated by non-financial rewards

Answer» a. Given freedom to make decisions

Question:

Organizational structures and systems can be judged using five dimensions (ABCDE) to assess whether they are achieving an appropriate balance. These five dimensions are Autonomy, Bureaucracy, Cultural Control, Decentralization and:

A.

Equal Opportunities

B.

Economic Incentives

C.

Equality and Diversity

D.

Evidence of Learning

Answer» b. Economic Incentives

Question:

The authors believe there are three tests that can be applied to judge whether a strategy is ‘good’. These are:

A.

Fit, distinctiveness, sustainability

B.

Fit, internal resources, external environment

C.

Distinctiveness, internal resources, fit

D.

Sustainability, distinctiveness, external environment

Answer» b. Fit, internal resources, external environment

Question:

An organization that divides its structure into two main parts – one dealing with product groups and one dealing with customer segments is called:

A.

A front-back structure

B.

A product-customer structure

C.

A back to back structure

D.

A matrix structure

Answer» a. A front-back structure

Question:

The internal audit function is least effective when the department:

A.

Is non-independent.

B.

Is competent.

C.

Is objective.

D.

Exhibits integrity

Answer» a. Is non-independent.

Question:

The main components of an organization’s architecture are structural hierarchy, values andbelief systems, contracts and relationships and (two more):

A.

Control systems and ways of working

B.

Information infrastructure and power structures

C.

Control systems and power structures

D.

Control systems and information infrastructure

Answer» d. Control systems and information infrastructure

Question:

Which type of corporate parenting style has the closest relationship with its individual businesses?

A.

Co-evolution

B.

Corporate flexibility

C.

Strategic Control

D.

Strategic planning

Answer» d. Strategic planning