Business 497A - Strategic Management System » Summer 2023 » Video Quiz Alibaba Ch 10

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Question #1
If the Hong Kong Exchange did not deny Alibaba the initial public offering, what may have happened to the stakeholders of the Chinese internet giant?
A.   Stakeholder interests are not a concern because of China's control economy.
B.   Stakeholder interests would be a focus because of the control the managers of Alibaba would have had.
C.   Stakeholder interests may have not been addressed as diligently as they should, causing an agency relationship problem.
D.   Stakeholder interests would have been ignored due to the large-block ownership concentration.
Question #2
The Hong Kong Exchange denied Alibaba the IPO while the NYSE did not. Why would the Hong Kong Exchange be stricter in its acceptance rate of IPOs?
A.   China will only accept companies who are projected to grow exceptionally.
B.   To ensure international investors have a strong corporate governance system and that their investment in the growing Chinese market will be protected.
C.   China is not concerned with growing its economy.
D.   China wants to be able to have full managerial control of its public companies.
Question #3
Alibaba is a company that is very profitable and has a large market value. What would be a beneficial use of the funds generated by the IPO?
A.   Diversification and reinvestments to help the company and its stock grow, which benefits stakeholders and shareholders
B.   Give considerable pay increases to the Board of Directors and the senior managers
C.   Employ more people to benefit the community as a stakeholder
D.   Over diversify to give Alibaba the largest potential for growth
Question #4
Alibaba is listed on the New York Stock Exchange instead of the Hong Kong Exchange. This is making it easy for Americans and American companies to invest in the Chinese company. What group of stakeholders did Alibaba not consider when choosing to list on the NYSE?
A.   The employees, as they cannot invest in the company
B.   The citizens of China who will have a hard time investing in the company, even though Alibaba is from their nation
C.   Suppliers, as this would cause legal conflicts
D.   Shareholders because the American investors will not be able to easily see the benefits of their investments

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