Question 1

Explain the principles of agency theory, including the issues it addresses.What are some effective ways to deal with agency problems, as implied or stated by agency theory?

Accepted Answer

The answer of Explain the principles of agency theory, including...

Question 2

When managers of a finn seek to unilaterally rewrite the terms of a contract with suppliers, buyers, or complement providers in a way that is more favorable to their firm, they are engaging in:

Accepted Answer

Opportunistic exploitation refers to a situation where managers use their bargaining power to unilaterally change the terms of a contract in their favor. This is often done without considering the interests of other parties involved in the contract, such as suppliers, buyers, or complement providers. This behavior is often seen as unethical and can damage long-term business relationships. Therefore, the best answer is A.

Question 3

Business ethics are concerned with accepted principles of right or wrong governing the conduct of businesspeople.
Identify and discuss the common examples of unethical decisions that businesspeople have made.

Accepted Answer

The answer of Business ethics are concerned with accepted principles...

Question 4

To make sure that ethical issues are considered in business decisions:

Accepted Answer

Top managers play a crucial role in ensuring that ethical considerations are taken into account in business decisions. They should be able to model and articulate ethical behavior for other employees to emulate. A no-layoff policy, granting stock options, and hiring/promoting employees with a focus on economic gains do not necessarily address ethical issues effectively. Eliminating the principal-agent approach may not be feasible or desirable in some business situations.

Question 5

Consider a national chain of company-owned fast-food restaurants.For this finn, list the important stakeholders.
Then describe how each stakeholder group can affect the firm's profitability.

Accepted Answer

The answer of Consider a national chain of company-owned fast-food...

Question 6

Identify and discuss the governance mechanisms that help align the incentives of stockholders and managers, and help monitor and control management.

Accepted Answer

The answer of Identify and discuss the governance mechanisms that...

Quiz 11: Corporate Performance, Governance, and Business Ethics

Explain the principles of agency theory, including the issues it addresses.What are some effective ways to deal with agency problems, as implied or stated by agency theory?

When managers of a finn seek to unilaterally rewrite the terms of a contract with suppliers, buyers, or complement providers in a way that is more favorable to their firm, they are engaging in:

Business ethics are concerned with accepted principles of right or wrong governing the conduct of businesspeople. Identify and discuss the common examples of unethical decisions that businesspeople have made.

To make sure that ethical issues are considered in business decisions:

Consider a national chain of company-owned fast-food restaurants.For this finn, list the important stakeholders. Then describe how each stakeholder group can affect the firm's profitability.

Identify and discuss the governance mechanisms that help align the incentives of stockholders and managers, and help monitor and control management.