GMAC Stakeholder Management 5

Question 1

A board of directors primarily represents which stakeholder group's interests under U.S. corporate governance?

Accepted Answer

Shareholders

Answer

Directors owe fiduciary duties of care and loyalty primarily to the corporation and its shareholders.

Question 2

A retailer cut supplier prices sharply, boosting margins, but later faced supply shortages. Which conclusion is best supported?

Accepted Answer

Short-term gains from pressuring one stakeholder can create longer-term costs

Answer

Squeezing suppliers improved short-term margins but weakened the relationship, causing operational problems later.

Question 3

A company discloses carbon emissions data voluntarily to investors. This primarily addresses which stakeholder concern?

Accepted Answer

Transparency regarding ESG risks

Answer

Voluntary emissions disclosure helps investors assess environmental, social, and governance risk exposure.

Question 4

In stakeholder negotiations, what does BATNA stand for?

Accepted Answer

Best Alternative To a Negotiated Agreement

Answer

BATNA is the best option a party has if negotiations fail, which sets their walk-away point.

Question 5

Which practice most effectively builds long-term trust with community stakeholders near a new facility?

Accepted Answer

Engaging the community early and consistently, including before decisions are final

Answer

Early, two-way engagement gives communities a real voice and reduces opposition later.

GMAC - Graduate Management Admission Council Practice Test