Question 1

Fiduciary responsibility ensures a corporate environment of strong internal controls, fiscal accountability, high ethical standards, and compliance with all applicable laws and regulations.

Accepted Answer

Fiduciary responsibility refers to the obligation to act in the best interest of another party, such as a corporation's stakeholders, and encompasses the duty to ensure strong internal controls, fiscal accountability, high ethical standards, and compliance with laws and regulations.

Question 2

Board of directors' member Rachel Hoff has a duty to exercise fiduciary responsibility. This means that Hoff can be fined if the organization breaks the law.

Accepted Answer

Fiduciary responsibility means that Rachel Hoff must act in the best interests of the organization, including making decisions with care and loyalty. Being fined for the organization breaking the law would depend on the specifics of the law broken and her involvement or negligence in the matter, not simply on her fiduciary duty.

Question 3

The Board of Directors of PepsiCo provides general advice and counsel to the Corporation's CEO and senior executives.

Accepted Answer

The Board of Directors of PepsiCo, like those of other major corporations, is responsible for providing general advice, oversight, and counsel to the CEO and senior executives, guiding strategic direction and governance practices.

Question 4

Major sections of the corporate governance guidelines for the board of directors of PepsiCo address organizational competitive strategies.

Accepted Answer

Corporate governance guidelines for the board of directors primarily focus on the roles, responsibilities, and procedures of the board rather than specific organizational competitive strategies.

Question 5

PepsiCo implemented multilevel web-based training programs around the world that tests understanding of:

Accepted Answer

PepsiCo's multilevel web-based training programs are comprehensive and cover a wide range of topics, including insider trading, sexual harassment, and safety, to ensure that their employees are well-informed and compliant with both legal standards and company policies.

Question 6

PepsiCo conducts an annual survey to help demonstrate the condition of its control culture. The questionnaire probes:

Accepted Answer

PepsiCo's annual survey likely covers various aspects of its control culture, including employee evaluation (to assess performance and adherence to standards), incident reporting (to understand and mitigate risks), and objective setting (to ensure alignment with strategic goals). These elements collectively help in demonstrating the condition of its control culture.

Question 7

One of PepsiCo's strongest corporate governance attributes is its _____________ that, if needed, can keep management in check.

Accepted Answer

PepsiCo's independent corporate board is a key governance attribute that can keep management in check by providing oversight and ensuring that the company's leadership acts in the best interests of the shareholders. Independent boards are crucial for effective corporate governance as they can offer unbiased judgment and oversight.

Question 8

Piyush Patel is the manager of a group of convenience stores. He has installed surveillance cameras on the fuel pump islands. For Patel, video monitoring is a means of __________ customers.

Accepted Answer

The answer of Piyush Patel is the manager of a...

Question 9

A key factor in PepsiCo's receipt of the Alexander Hamilton Corporate Governance Award was its focus on the development of and continued use of effective ___________ controls.

Accepted Answer

PepsiCo's focus on the development of and continued use of effective preventive controls was a key factor in its receipt of the Alexander Hamilton Corporate Governance Award. Preventive controls are proactive measures designed to prevent errors, fraud, or other issues before they occur, which aligns with principles of good corporate governance.

Question 10

Given the 21^st-century's ever-present threats of terrorism, governments and business firms have substantially accelerated their use of __________ controls.

Accepted Answer

Given the context of addressing threats of terrorism, governments and businesses have increased their use of security-based controls to protect against such threats.

Question 11

___________ involves the processes for ensuring that behaviors and decisions conform to an organization's standards and legal requirements, including rules, policies, procedures, and goals.

Accepted Answer

Control involves the processes for ensuring that behaviors and decisions conform to an organization's standards and legal requirements, including rules, policies, procedures, and goals. This includes monitoring activities and making corrections as necessary.

Question 12

The need for controls can be illustrated in the way control interacts with planning. One example of this interaction is the fact that planning prescribes __________ behaviors while controls help to maintain or redirect _________ behaviors.

Accepted Answer

Planning prescribes desired behaviors by setting goals and objectives, while controls help to maintain or redirect actual behaviors to ensure alignment with those planned objectives.

Question 13

Control systems in organizations __________.

Accepted Answer

Control systems in organizations are often viewed negatively due to their association with monitoring and restrictions, but they are both useful and necessary for guiding the organization towards its goals. Additionally, these systems should interact with planning activities to ensure that plans are being followed and to adjust them as needed, making all the given statements correct.

Question 14

Juanita Montez is concerned that her company needs to take some steps to ensure that the actions of workers conform to the expectations of the company. Montez is advocating the implementation of a(n) __________.

Accepted Answer

A control system is designed to ensure that the actions of employees are in alignment with the company's goals and expectations. It includes mechanisms for directing, monitoring, and adjusting the activities and performances of resources (human and otherwise) within the organization to achieve desired outcomes.

Question 15

Mechanisms that are intended to reduce the likelihood of an unwanted event and thereby minimize the need for corrective action are known as __________ controls.

Accepted Answer

Preventive controls are designed to deter or prevent unwanted events from occurring, thereby minimizing the need for corrective actions. These controls aim to identify and mitigate potential risks before they result in issues.

Question 16

Controls help maintain or redirect __________ behaviors and results.

Accepted Answer

The answer of Controls help maintain or redirect __________ behaviors...

Question 17

All of the following are examples of preventive controls except __________.

Accepted Answer

Retirement incentives are not preventive controls; they are more related to managing workforce transitions and do not prevent errors or fraud in processes or systems. Preventive controls like rules and regulations, recruitment and selection procedures, and training and development programs are designed to deter undesirable actions before they occur.

Question 18

__________ controls are mechanisms intended to reduce or eliminate unwanted behaviors or results and thereby return the situation to conformity with the organization's regulations and standards.

Accepted Answer

Corrective controls are designed to correct unwanted or undesirable behaviors and outcomes to ensure that operations align with the organization's standards and regulations.

Question 19

Maria Sacasa works as a manager at a diamond mine. Because there is a great incentive for the miners to steal some of the diamonds they find, Sacasa spends a great deal of time and effort recruiting, selecting, and training only those workers who are less likely to steal from the firm. Sacasa is relying on __________ controls.

Accepted Answer

Preventive controls are measures taken to deter or prevent undesirable outcomes before they occur. In this scenario, Maria Sacasa is focusing on recruiting, selecting, and training workers who are less likely to steal, which is a form of preventive control aimed at reducing the risk of theft before it happens.

Question 20

Jeff Washam has been given the responsibility to reduce behaviors of employees that are outside of those allowed by company rules and regulations. Washam will probably rely on __________ controls.

Accepted Answer

Corrective controls are specifically designed to address and correct behaviors that deviate from established norms, rules, or standards within an organization. In this context, since Jeff Washam's task is to reduce behaviors that are outside of those allowed by company rules and regulations, corrective controls are the appropriate mechanism to achieve this goal. These controls can include disciplinary actions, additional training, or modifications to procedures and policies to prevent future deviations.

Quiz 10: Achieving Organizational Control

Fiduciary responsibility ensures a corporate environment of strong internal controls, fiscal accountability, high ethical standards, and compliance with all applicable laws and regulations.

Board of directors' member Rachel Hoff has a duty to exercise fiduciary responsibility. This means that Hoff can be fined if the organization breaks the law.

The Board of Directors of PepsiCo provides general advice and counsel to the Corporation's CEO and senior executives.

Major sections of the corporate governance guidelines for the board of directors of PepsiCo address organizational competitive strategies.

PepsiCo implemented multilevel web-based training programs around the world that tests understanding of:

PepsiCo conducts an annual survey to help demonstrate the condition of its control culture. The questionnaire probes:

One of PepsiCo's strongest corporate governance attributes is its _____________ that, if needed, can keep management in check.

Piyush Patel is the manager of a group of convenience stores. He has installed surveillance cameras on the fuel pump islands. For Patel, video monitoring is a means of __________ customers.

A key factor in PepsiCo's receipt of the Alexander Hamilton Corporate Governance Award was its focus on the development of and continued use of effective ___________ controls.

Given the 21^st-century's ever-present threats of terrorism, governments and business firms have substantially accelerated their use of __________ controls.

___________ involves the processes for ensuring that behaviors and decisions conform to an organization's standards and legal requirements, including rules, policies, procedures, and goals.

The need for controls can be illustrated in the way control interacts with planning. One example of this interaction is the fact that planning prescribes __ behaviors while controls help to maintain or redirect _ behaviors.

Control systems in organizations __________.

Juanita Montez is concerned that her company needs to take some steps to ensure that the actions of workers conform to the expectations of the company. Montez is advocating the implementation of a(n) __________.

Mechanisms that are intended to reduce the likelihood of an unwanted event and thereby minimize the need for corrective action are known as __________ controls.

Controls help maintain or redirect __________ behaviors and results.

All of the following are examples of preventive controls except __________.

__________ controls are mechanisms intended to reduce or eliminate unwanted behaviors or results and thereby return the situation to conformity with the organization's regulations and standards.

Jeff Washam has been given the responsibility to reduce behaviors of employees that are outside of those allowed by company rules and regulations. Washam will probably rely on __________ controls.

Quiz 10: Achieving Organizational Control

Fiduciary responsibility ensures a corporate environment of strong internal controls, fiscal accountability, high ethical standards, and compliance with all applicable laws and regulations.

Board of directors' member Rachel Hoff has a duty to exercise fiduciary responsibility. This means that Hoff can be fined if the organization breaks the law.

The Board of Directors of PepsiCo provides general advice and counsel to the Corporation's CEO and senior executives.

Major sections of the corporate governance guidelines for the board of directors of PepsiCo address organizational competitive strategies.

PepsiCo implemented multilevel web-based training programs around the world that tests understanding of:

PepsiCo conducts an annual survey to help demonstrate the condition of its control culture. The questionnaire probes:

One of PepsiCo's strongest corporate governance attributes is its _____________ that, if needed, can keep management in check.

Piyush Patel is the manager of a group of convenience stores. He has installed surveillance cameras on the fuel pump islands. For Patel, video monitoring is a means of __________ customers.

A key factor in PepsiCo's receipt of the Alexander Hamilton Corporate Governance Award was its focus on the development of and continued use of effective ___________ controls.

Given the 21st-century's ever-present threats of terrorism, governments and business firms have substantially accelerated their use of __________ controls.

___________ involves the processes for ensuring that behaviors and decisions conform to an organization's standards and legal requirements, including rules, policies, procedures, and goals.

The need for controls can be illustrated in the way control interacts with planning. One example of this interaction is the fact that planning prescribes __________ behaviors while controls help to maintain or redirect _________ behaviors.

Control systems in organizations __________.

Juanita Montez is concerned that her company needs to take some steps to ensure that the actions of workers conform to the expectations of the company. Montez is advocating the implementation of a(n) __________.

Mechanisms that are intended to reduce the likelihood of an unwanted event and thereby minimize the need for corrective action are known as __________ controls.

Controls help maintain or redirect __________ behaviors and results.

All of the following are examples of preventive controls except __________.

__________ controls are mechanisms intended to reduce or eliminate unwanted behaviors or results and thereby return the situation to conformity with the organization's regulations and standards.

Jeff Washam has been given the responsibility to reduce behaviors of employees that are outside of those allowed by company rules and regulations. Washam will probably rely on __________ controls.

Given the 21^st-century's ever-present threats of terrorism, governments and business firms have substantially accelerated their use of __________ controls.

The need for controls can be illustrated in the way control interacts with planning. One example of this interaction is the fact that planning prescribes __ behaviors while controls help to maintain or redirect _ behaviors.