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Chapter 02 - Company Mission
51. (p. 33) Which of these is NOT a newest trend in mission components?
52. (p. 33) Three issues have become prominent in the strategic planning for organizations and
are increasingly becoming integral parts in the development and revisions of mission
statements. These are:
53. (p. 33) "The customer is our top priority" is a
54. (p. 34) Which two U.S. management experts fostered a worldwide emphasis on quality in
manufacturing?
55. (p. 34) All of these are Demming's well known points on quality EXCEPT:
56. (p. 34) Which of these is one of Demming's well-known points on quality?
57. (p. 34) Where as ______ expresses an answer to the question "What business are we in?" a
company ____ is developed to express the aspirations of the executive leadership.
58. (p. 34) Mission statement expresses an answer to which of these questions?
59. (p. 34) _______ represents a statement that presents a firm's strategic intent designed to
focus the energies and resources of the company on achieving a desirable future.
60. (p. 34) _______ represents a statement that is sometimes developed to express the
aspirations of the executive leadership.
61. (p. 34) _______ presents the firm’s strategic intent.
62. (p. 34) _______ is often a single sentence, designed to be memorable.
63. (p. 36) The strategic decision makers in the firm are responsible for:
64. (p. 36) Which group of strategic managers is responsible for overseeing the creation and
accomplishment of the company mission?
65. (p. 36) The strategic managers at the highest level of the organization:
66. (p. 36) A company’s Board of Directors is elected by its
67. (p. 36) In overseeing the management of a firm, the board of directors operates as
representatives of the
68. (p. 36) Which of these is NOT a responsibility of the board of directors?
69. (p. 38) The board of director's greatest impact on the behavior of a firm results from its
70. (p. 38) A set of ideas on organizational control based on the belief that the separation of the
ownership from management creates the potential for the wishes of owners to be ignored
refers to the
71. (p. 38) Whenever there is a separation of the owners (principals) and the managers (agents)
of a firm, the potential exists for the wishes of the ____ to be ignored.
72. (p. 38) _______ delegate authority to ______
73. (p. 38) Agency problems arise when the interests of owners and managers
74. (p. 38) In general, ____ seek stock value maximization.
75. (p. 38) The cost of agency problems and the cost of actions taken to minimize them are
called
76. (p. 38) Which of these conditions is also called “self-interest combined with a smile?”
77. (p. 38) Which of these conditions is also called “shirking?”
78. (p. 40) When executives unrealistically assess acquisition targets’ outlooks in order to
increase the probability of increasing organizational size through their acquisition, this is an
79. (p. 40) When executives presell products at year-end to trigger their annual bonuses even
80. (p. 38) When owners have limited access to company information making executives free to
pursue their own interests refers to
81. (p. 40) When executives manipulate personnel records to keep or acquire key company
personnel, this is an example of
82. (p. 40) An agency problem caused by the limited ability of stockholders to precisely
determine the competencies and priorities of executives at the time they are hired refers to
83. (p. 40) Which of these represent the most popular solution to moral dilemma and adverse
selection problems?
84. (p. 41-42) Which of the following is NOT a problem resulting from agency?
85. (p. 42) Managers’ stature in the business community is commonly associated with company
86. (p. 42) Which of these represent a solution to the agency problem?
87. (p. 42) Backloaded compensation refers to
Chapter 02 - Company Mission
Essay Questions
88. Define mission statement. Describe the importance of developing an explicit mission
statement.
Learning Objective: 1
89. Briefly describe the process of defining the company mission for a specific business.
Learning Objective: 1
90. When a mission statement is redefined or revised, what components should be present?
Learning Objective: 1
91. Identify and briefly describe the three indispensable components of the mission
statement.
92. What are the three economic goals that guide the strategic direction of business
organizations? Explain each of them briefly.
Learning Objective: 3
93. Differentiate between company philosophy and public image. Why should organizations
care to have either or both of these in its mission?
Learning Objective: 4
94. What is meant by company self-concept? Why is it an important mission statement
component?
Learning Objective: 4
95. Identify and briefly explain the newest trends in mission components.
96. How is a vision statement different from a mission statement?
Learning Objective: 4
97. Who are the board of directors? What are their major responsibilities?
Learning Objective: 6
98. Define agency theory. What are agency costs?
Learning Objective: 7
99. How do moral hazard and adverse selection cause agency problems?
Learning Objective: 7
100. Briefly describe the problems that can result from agency and what steps can be taken to
resolve them.
Please refer to the discussion on "Problems that can Result from Agency" and "Solutions to
