P&S CH 2

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Across
  1. 1. What it is that the company exists to do.
  2. 6. A person delegating authority to an agent, who acts on the principal’s behalf.
  3. 9. The set of values, norms, and standards that control how employees work to achieve an organization’s mission and goals.
  4. 12. Individuals and groups outside the company that have some claim on the company.
  5. 14. A problem that arises when managers pursue strategies that are not in the interests of stockholders.
  6. 16. Equity capital for which there is no guarantee that stockholders will ever recoup their investment or earn a decent return.
  7. 19. Conditions created when managers underinvest in working conditions or pay employees below market rates, in order to reduce their costs of production
  8. 26. Arises in a business context when managers pay bribes to gain access to lucrative business contracts.
  9. 27. A relationship that arises whenever one party delegates decision-making authority or control over resources to another.
  10. 28. A person to whom authority is delegated by a principal.
  11. 29. Occurs when managers use their control over corporate data to distort or hide information in order to enhance their own financial situation or the competitive position of the firm.
Down
  1. 2. Occurs when managers find a way to feather their own nests with corporate monies.
  2. 3. A formal statement of the ethical principles a business adheres to.
  3. 4. 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.
  4. 5. Accepted principles of right or wrong that govern the conduct of a person, the behavior of members of a profession, or the actions of an organization.
  5. 7. The risk of being acquired by another company.
  6. 8. A theory dealing with the problems that can arise in a business relationship when one person delegates decision-making authority to another.
  7. 10. Accepted principles of right or wrong governing the conduct of businesspeople.
  8. 11. or groups with an interest, claim, or stake in the company, in what it does, and in how well it performs.
  9. 13. Occurs when a firm takes actions that directly or directly result in pollution or other forms of environmental harm.
  10. 15. A precise and measurable desired future state that a company attempts to realize.
  11. 17. The desired future state of a company.
  12. 18. Stockholders and employees, including executive officers, other managers, and board members.
  13. 20. Actions aimed at harming actual or potential competitors, most often by using monopoly power, thereby enhancing the long-run prospects of the firm.
  14. 21. A situation in which one party to an exchange has more information about the exchange than the other party.
  15. 22. Mechanisms that principals put in place to align incentives between principals and agents and to monitor and control agents.
  16. 23. Situations where 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.
  17. 24. The mechanisms that exist to ensure that managers pursue strategies in the interests of an important stakeholder group, the shareholders.
  18. 25. of how managers and employees of a company should conduct themselves, how they should do business, and what kind of organization they should build to help a company achieve its mission.