QUESTION 7

1. What is likely to be a problem with excessive decentralization?

   	a.	It results in slower speed of decision-making.
   	b.	It reduces opportunities for cross-fertilization among functions and divisions.
   	c.	It results in a flatter hierarchy.
   	d.	It prevents leadership skills from developing in lower level employees.

What is not usually true of an organizational culture?

1. 	a.	Culture can be developed through appropriate hiring and training practices.
   	b.	Culture is essentially a set of beliefs held by most employees.
   	c.	Culture can influence employees' behavior even when they are not actively monitored.
   	d.	Culture is totally independent of the leaders' actions.

1. Which is most likely to allow a firm's Board of Directors implement better corporate governance?

   	a.	Pre-determined protocol for decisions that need Board examination.
   	b.	Dual roles of Chairperson and CEO assigned to one person.
   	c.	Indefinite tenure for directors on the Board.
   	d.	Majority of insider directors on the Board.

1. When is a firm most likely to enter a new country by setting up a wholly-owned subsidiary?

   	a.	Exporting standard products is likely to meet local demand in the new country.
   	b.	The government of the new country has policies to discourage investments by multinationals.
   	c.	The company does not yet understand the local culture and laws of the new country.
   	d.	Acquisition opportunites with potential synergies for the company are avaliable in the new country.