MGT 405 Chpt 11

Card Set Information

Author:
LShak87
ID:
76363
Filename:
MGT 405 Chpt 11
Updated:
2011-03-31 01:24:44
Tags:
strategic management
Folders:

Description:
Corporate Performance, Governance, & Business Ethics
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user LShak87 on FreezingBlue Flashcards. What would you like to do?


  1. Individuals or groups with interests, claims, or stakes in the company, in what it does, and in how well it performs
    Stakeholders
  2. Stockholders and employees, including executive officers, other managers, and board members
    Internal stakeholders
  3. All other individuals and groups that have some claim on the company
    External stakeholders
  4. Agents almost always have more information about the resources they are managing than the principal does
    Information asymmetry
  5. By virtue of their position within the company, certain managers, can use their authority and control over corporate funds to satisfy these desires at the cost of returns to stockholders
    On-the-job consumption
  6. Senior employees of the company, such as the CEO
    Inside directors
  7. Not full-time employees at the company, who hold positions on the boards of several companies
    Outside directors
  8. Centerpiece of the corporate governance system directly elected by stockholders and represent their interest in the company
    Board of Directors
  9. The right to buy the company's shares at the predetermined (strike) price at some point in the future
    Stock options
  10. The risk of being acquired by another company
    Takeover constraint
  11. Earning money by having stock bought out by a defending company for a hefty premium
    Greenmail
  12. The primary governance mechanisms established within a company to reduce the scope of the agency problem between levels of management
    Strategic control systems
  13. Accepted principles of right or wrong that govern the conduct of a person, the members of a profession, or the actions of an organization
    Ethics
  14. Accepted principles of right or wrong governing the conduct of business people
    Business ethics
  15. Situations in which there is no agreement over exactly what the accepted principles of right and wrong are or where none of the available alternatives seems ethically acceptable
    Ethical dilemmas
  16. Honorable and benevolent behavior that is considered the responsibility of people of high (noble) birth
    Noblesse oblige
  17. Occurs when managers find a way to feather their own nests with corporate monies
    Self-dealing
  18. Occurs when managers use their control over corporate data to distort or hide information to enhance their own financial situation or the competitive position of the firms
    Information manipulation
  19. Actions aimed at harming actual potential competitors, most often by using monopoly power, and thereby enhancing the long-run prospects of the firm
    Anticompetitive behavior
  20. Occurs when the managers of a firm seek to unilaterally rewrite the terms of a contract with suppliers, buyers, or complement providers in a way that is more favorable to the firm, often using their power to force the revision through
    Opportunistic exploitation
  21. When managers underinvest in working conditions, or pay employees below-market rates, to reduce their costs of production
    Substandard working conditions
  22. Occurs when a firm takes actions that directly or indirectly result in pollution or other forms of environmental harm
    Environmental degradation
  23. When managers pay bribes to gain access to lucrative business contracts
    Corruption
  24. Generally accepted principles of right and wrong governing the conduct of individuals
    Personal ethics
  25. Formal statement of the ethical priorities a business adheres to
    Code of ethics

What would you like to do?

Home > Flashcards > Print Preview