Question 1

Which of the following is NOT a common board committee?

Accepted Answer

A) audit committee 
B) nomination committee 
C) marketing committee 
D) compensation committee 
E) All of the above are common board committees. 
A) audit committee 
B) nomination committee 
C) marketing committee 
D) compensation committee 
E) All of the above are common board committees. C

Question 2

Some European countries have firms with a two-tier board structure.

Accepted Answer

A) True 
 B)False  True

Question 3

According to NYSE standards, the audit committee has increased authority and responsibility to hire and fire the auditing firm.

Accepted Answer

A) True 
 B)False  True

Question 4

The lack of CEOs serving as Board Directors by America's top companies is evidence that the practice should be avoided

Accepted Answer

A) True 
 B)False

Question 5

Generally, what can be said about the structure of boards?

Accepted Answer

A) The more directors, the better the firm's financial performance will be. 
B) All the Fortune-listed firms have an independent chairman of the board. 
C) In regards to board composition, it is important to identify which specific board committees are best served by independent directors. 
D) There is little controversy about what defines the best board structure. 
E) All of the above. 
A) The more directors, the better the firm's financial performance will be. 
B) All the Fortune-listed firms have an independent chairman of the board. 
C) In regards to board composition, it is important to identify which specific board committees are best served by independent directors. 
D) There is little controversy about what defines the best board structure. 
E) All of the above.

Question 6

In the summer of 2002, what legislation increased the monitoring ability and responsibilities of American board directors?

Accepted Answer

A) Securities and Exchange Commission Act 
B) Sarbanes-Oxley Act 
C) Corporate Securities Act 
D) Board of Directors Act 
E) Act of Nature 
A) Securities and Exchange Commission Act 
B) Sarbanes-Oxley Act 
C) Corporate Securities Act 
D) Board of Directors Act 
E) Act of Nature

Question 7

Board members are chosen by:

Accepted Answer

A) Being related to a member of the board 
B) A vote by all employees 
C) A vote of the shareholders 
D) Promotion within the company 
E) An appointment by the executive committee 
A) Being related to a member of the board 
B) A vote by all employees 
C) A vote of the shareholders 
D) Promotion within the company 
E) An appointment by the executive committee

Question 8

To vote on major operating decisions is one of the five board functions.

Accepted Answer

A) True 
 B)False

Question 9

Federal law explicitly dictates that public corporations must have a board of directors.

Accepted Answer

A) True 
 B)False

Question 10

According to research, larger boards are more likely to act independent and therefore are more effectively at enhancing a firm's value than smaller boards.

Accepted Answer

A) True 
 B)False

Question 11

A director is not independent if he or immediate family) has worked for the company or its auditor within the last 10 years.

Accepted Answer

A) True 
 B)False

Question 12

A young growth-oriented firm may actually need more insiders on its Board of Directors.

Accepted Answer

A) True 
 B)False

Question 13

Because directors are supposed to represent shareholders' interests, directors have all these duties EXCEPT:

Accepted Answer

A) Fiduciary duty 
B) Duty of care 
C) Duty of auditing 
D) Duty of loyalty and fair dealing 
E) Directors have all of the above duties. 
A) Fiduciary duty 
B) Duty of care 
C) Duty of auditing 
D) Duty of loyalty and fair dealing 
E) Directors have all of the above duties.

Which of the following is NOT a common board committee?

Some European countries have firms with a two-tier board structure.

According to NYSE standards, the audit committee has increased authority and responsibility to hire and fire the auditing firm.

The lack of CEOs serving as Board Directors by America's top companies is evidence that the practice should be avoided

Generally, what can be said about the structure of boards?

In the summer of 2002, what legislation increased the monitoring ability and responsibilities of American board directors?

Board members are chosen by:

To vote on major operating decisions is one of the five board functions.

Federal law explicitly dictates that public corporations must have a board of directors.

According to research, larger boards are more likely to act independent and therefore are more effectively at enhancing a firm's value than smaller boards.

A director is not independent if he or immediate family) has worked for the company or its auditor within the last 10 years.

A young growth-oriented firm may actually need more insiders on its Board of Directors.

Because directors are supposed to represent shareholders' interests, directors have all these duties EXCEPT:

Corporations and Corporate Governance

Executive Incentives

Accountants and Auditors

Investment Banks and Securities Analysts

Creditors and Credit Rating Agencies

Shareholders and Shareholder Activism

Corporate Takeovers: a Governance Mechanism

The Securities and Exchange Commission and Sarbanes-Oxley

Systemic Risk, Moral Hazard Bailouts

Corporate Citizenship

Filters

Exam 4: The Board of Directors

Which of the following is NOT a common board committee?

Some European countries have firms with a two-tier board structure.

According to NYSE standards, the audit committee has increased authority and responsibility to hire and fire the auditing firm.

The lack of CEOs serving as Board Directors by America's top companies is evidence that the practice should be avoided

Generally, what can be said about the structure of boards?

In the summer of 2002, what legislation increased the monitoring ability and responsibilities of American board directors?

Board members are chosen by:

To vote on major operating decisions is one of the five board functions.

Federal law explicitly dictates that public corporations must have a board of directors.

According to research, larger boards are more likely to act independent and therefore are more effectively at enhancing a firm's value than smaller boards.

A director is not independent if he or immediate family) has worked for the company or its auditor within the last 10 years.

A young growth-oriented firm may actually need more insiders on its Board of Directors.

Because directors are supposed to represent shareholders' interests, directors have all these duties EXCEPT:

Corporations and Corporate Governance

Executive Incentives

Accountants and Auditors

Investment Banks and Securities Analysts

Creditors and Credit Rating Agencies

Shareholders and Shareholder Activism

Corporate Takeovers: a Governance Mechanism

The Securities and Exchange Commission and Sarbanes-Oxley

Systemic Risk, Moral Hazard Bailouts

Corporate Citizenship

Filters