17

Which of the following is NOT a reason it is hard for the boardof directors to effectively monitor all the activity of the CEO andtop management?

The board of directors may be not be experts in the business ofthe corporation.

Members of the board of directors can be large shareholders.

The board of directors are part time.

Board of directors depends upon management for most of theirinformation about the company and its competitive situation.

22

Some people have suggested that managers should have aprofessional code of ethics like the one for physicians. Yourtextbook even included an example of a managerial code of ethics(the MBA oath). Which of the following is NOT a reason it is harderto set up a managerial code of ethics than the one forphysicians?

Managers serve stakeholders with a more diverse set of ethicalstandards.

Managers serve many more stakeholders than physicians.

Being a physician is a less complex job than being amanager.

The acceptable rules of business can change acrosscountries.

23

A local Phoenix fashion designer has been successful sellingexpensive jewelry inspired by the styles of Arizona After a longvacation in Japan the designer noticed no one was selling similarjewelry in Japan. The designer has already signed a lease on asmall store in Tokyo and arranged for friend to move to Japan andrun the store. It will open in six months. The designer approachesyou to ask for your help in this effort What is the first questionyou should ask?

Who will be your competitors in Japan?

What kinds of jewelry do the Japanese like?

Have you made a business plan?

None of these

Have you considered using a joint venture with local Japanesefirm?