Canadian Business & Society Ethics, Responsibilities And Sustainability 4th Edition By Robert – Test Bank

Chapter 11
Responsible Ownership and Governance
True / False Questions

1. There are many influential stakeholders in a corporation, but corporations ultimately exist to serve the shareholders.
TRUE

Difficulty: Easy
Learning Objective: 11-01 Identify the owners of Canadian business.
Topic: 11-01 The Ownership of Canadian Business

2. Many corporations operate with dual-class stock, where more than one type of share or stock with different voting rights and dividend payments is issued by a single corporation.
TRUE

Difficulty: Easy
Learning Objective: 11-01 Identify the owners of Canadian business.
Topic: 11-01 The Ownership of Canadian Business

3. Non-voting shares or restricted shares are also referred to as “common” shares.
FALSE

Difficulty: Medium
Learning Objective: 11-01 Identify the owners of Canadian business.
Topic: 11-01 The Ownership of Canadian Business

4. Active shareholders are those who do not attempt to influence the affairs of the corporation even though they have a legal right to do so.
FALSE

Difficulty: Easy
Learning Objective: 11-01 Identify the owners of Canadian business.
Topic: 11-01 The Ownership of Canadian Business

5. The creation of restricted shares allows management or majority owners to control the corporation by concentrating voting power in the hands of a few friendly shareholders.
TRUE

Difficulty: Hard
Learning Objective: 11-01 Identify the owners of Canadian business.
Topic: 11-01 The Ownership of Canadian Business

6. Venture capital companies usually acquire part ownership of business enterprises for which they provide financial and management assistance.
TRUE

Difficulty: Medium
Learning Objective: 11-01 Identify the owners of Canadian business.
Topic: 11-01 The Ownership of Canadian Business

7. Private equity firms manage large pools of investment funds which come from large institutional investors rather than individual investors.
FALSE

Difficulty: Medium
Learning Objective: 11-01 Identify the owners of Canadian business.
Topic: 11-01 The Ownership of Canadian Business

8. Credit Union Central of New Brunswick provides financial services to its customers, who are owner-members. This credit union is a cooperative form of ownership.
TRUE

Difficulty: Easy
Learning Objective: 11-01 Identify the owners of Canadian business.
Topic: 11-01 The Ownership of Canadian Business

9. Canadian federal, provincial, and municipal governments all operate a large number of business enterprises, usually referred to as Crown Centers.
FALSE

Difficulty: Easy
Learning Objective: 11-01 Identify the owners of Canadian business.
Topic: 11-01 The Ownership of Canadian Business

10. Passive shareholders are typically owners of a small amount of shares holdings.
TRUE

Difficulty: Medium
Learning Objective: 11-01 Identify the owners of Canadian business.
Topic: 11-01 The Ownership of Canadian Business

11. Active shareholders have limited influence regarding corporate social responsibility issues.
FALSE