Deck 3: Employees, Stockholders and Corporate Governance

Question 1

Employer-employee relationship is much the same as it has always been.

Answer 1

False
Explanation: The relationship is very different now.

Question 2

Which of the following are neutral parties that can be called to help settle labor disputes?

A) arbitrator
B) steward
C) mediator
D) charter
E) outside director

Answer 2

A,C

Question 3

Which statements about the old employment relationships are correct?

A) Under the old employment relationship, job seekers were expected to be hired and trained for the job.
B) The old relationship provided job security, steady pay increases with good benefits, opportunities for advancement, and long-term employment.
C) Employees are responsible for their own career future, which is likely to entail having multiple jobs.
D) The old manager-employee relationship was more collaborative than adversarial.
E) The old relationship called for loyalty to and identification with the employer.

Answer 3

A,B,E

Question 4

Which of the following is true about executive compensation?

A) U.S. executives are the highest paid in the world.
B) Compensation only comes in the form of salaries.
C) Executives are prohibited by federal law to earn more than $1 million a year.
D) A golden parachute refers to executives bailing out of a company before it goes bankrupt.
E) An executive's skill and performance has little do to with his or her compensation.

Question 5

What is the mission of the Security and Exchange Commission (SEC)?

A) To help stockholders by trading the stocks for buyers and sellers.
B) To approve which stocks can be bought and sold in the stock market and to oversee the exchange of stocks.
C) To protect stockholders' rights by regulating the stock market to make sure it is run fairly and that investment information is fully disclosed.
D) To fine businesses that break the rules of the stock exchange including fraud.
E) To guarantee profits for all shareholders.

Question 6

_________ occurs when a person uses confidential information before it becomes public knowledge to buy or sell the company stock.

A) Outsider trading
B) Freewheeling
C) Whistleblowing
D) Insider trading
E) Hedging

Question 7

Which of the following statements is not a major stakeholder in a corporation?

A) Board of directors
B) Management
C) Employees
D) Stockholders
E) General public

Question 8

_________is the right to be treated fairly and to receive an impartial review of a complaint.

A) Ombudsmanship
B) Mediation
C) Due process
D) Governance
E) Employment at will

Question 9

Which statement correctly describes ombuds?

A) They are used primarily during employment negotiating to help settle disagreements and to make a binding decision for them.
B) They are primarily used to investigate and help settle employee complaints between employers and employees fairly.
C) They are primarily used to help employers get workers.
D) They are primarily used to help businesses meet employee rights.
E) None of these statements is correct.

Question 10

Which of the following are employee rights based on?

A) personalities of management
B) whims and fancies
C) emotions
D) ethical and legal employer expectations
E) agreements and contracts

Question 11

Which of the following are concerned with safety and health in the work place?

A) OSHA
B) Department of Labor
C) Patient Protection and Affordable Care Act
D) Workplace violence
E) Privacy

Question 12

List five rights of a stockholder.

Question 13

Describe due process.

Question 14

What was the Norris-LaGuardia Act?

Question 15

What are labor unions? Why is it important to study them?

Question 16

List at least five aspects of the new employment relationship between employers and employees.

Question 17

Which statements about boards of directors are correct?

A) Outside directors are employees or people who have other ties to the company.
B) Outside directors provide a method of balancing power and a system of checks and balances to help prevent corruption.
C) The potential problem of inside directors is that they are often beholden to the CEO and may agree with whatever the executive wants.
D) Board members are balanced in gender and ethnicity.
E) Outside directors are rarely friends of a company's CEO, and thus provide fair and impartial opinions about the business's operations.

Question 18

Which of the following are rights of a stockholder?

A) Share in profits through dividend payment
B) Vote on bylaws and charter changes
C) Sell shares of stock
D) Know about the affairs of the corporation through information disclosure
E) Receive an annual report with financial performance and condition

Question 19

Which statements about corporate stakeholders and their primary power are correct?

A) The stockholders are only individuals and do not include institutional investors.
B) The stockholders are the legal owners of the corporation. Their primary power is to select the corporate board of directors.
C) Managers plan, organize, lead, and control a firm's resources to achieve corporate goals. Their primary power is to control day-to-day operations.
D) Employees do the work to provide the products and other functions. Their primary power includes collective bargaining and striking.
E) The boards of directors provide strategic direction and governance and oversee the managers of the corporation. The board's primary power is to select, advise, supervise, and evaluate the top managers.

Question 20

Which statement about employee rights is not correct?

A) Employees have the right to benefits.
B) Employees have the right to due process, to be treated fairly.
C) Employees have the right to a safe and healthy workplace.
D) Employees have the right to personal off-the-job privacy, but not to business-related privacy at work.
E) Employees have the right to freedom of speech and to blow the whistle for wrongdoing at work without penalty.

Question 21

The _________doctrine holds that the employment relationship is voluntary and that employees can be fired or quit for any or no reason.

A) employment-at-large
B) employee outcome
C) employee option
D) employment-at-will
E) freedom-to-work

Question 22

The Electronic Communications Privacy Act of 1986 essentially protects individual rights to privacy, but it allows employers to monitor job-related communication.

Question 23

OSHA stands for Ombudsman Safety and Hazard Authority

Question 24

An ombuds investigates complaints and helps to settle them fairly.

Question 25

Today, it is common for ex-employees to take the firm to court to get back their jobs through employee lawsuits.

Question 26

To compete successfully in the global economy, management, and labor need to collaborate and compete with their business competitors, rather than fight amongst themselves.

Question 27

Unions in the United States are on the rise.

Question 28

An understanding of labor relations is not necessary for those working in nonunion firms because it cannot aid in keeping the firm from becoming unionized.

Question 29

The employer-employee relationship is critical because it affects the performance of the business.

Question 30

The stock market is a bit like legalized gambling-the house (financial institutions and brokers) always wins because it gets a commission regardless of profit or loss.

Question 31

A corporate charter is granted by the federal government giving the firm the right to operate under basic terms of its existence and governance.

Question 32

_______ provide workers with desired outcomes and protection from undesired outcomes.

A) Unionizations
B) Employee rights
C) Employer concessions
D) Arbitrations
E) Whistleblowing

Question 33

The _______ Act gave employees the right to unionize without fear of prosecution, and it listed unfair practices of employers

A) Wagner
B) Norris-LaGuardia
C) Fair Standards
D) Civil Rights
E) Employee Protection

Question 34

A/n _______ is a neutral party who makes a binding decision for management and labor.

A) teamster
B) ombud
C) arbitrator
D) mediator
E) collector

Question 35

Which statement about employment contracts in union and nonunion organizations is not correct?

A) All employer-employee relations include employment contracts.
B) Nonunion employment contracts are negotiated on an individual basis; they are usually implicit, informal, and not written.
C) Union employment contracts are developed through collective bargaining and affect all union members.
D) Union employment contracts are usually explicit, formal, and written legal contracts.
E) All of these statements are correct.

Question 36

Which of the following statements is true about the employer-employee relationship?

A) It does not usually affect business performance.
B) It affects society and government operations.
C) If transit workers in New York go on strike, it does not affect the general public.
D) The National Football League lockout only affected owners and players.
E) Employer-employee relations affect only the market environment.

Question 37

Which statement about the new employment relationships is correct?

A) The company provided job security, steady pay increases with good benefits, and opportunities for advancement.
B) Employees enjoy long-term employment.
C) The new relationship calls for loyalty to and identification with the employer.
D) The new manager-employee relationship was quite adversarial.
E) The new relationship expects loyalty to self and identification with the profession.

Question 38

Governance refers to the total cost of the employee; executives commonly receive a salary, benefits, bonuses, stock options, and many perks.

Question 39

Shareholder resolutions place a suggested action on the proxy statement to be voted on by all stockholders.

Question 40

Explain how the SEC helps to protect stockholders.