Exam 10: Corporate Governance and Reform

It is estimated that more than ________ percent of the world's publicly traded companies are U.S.or British.

All persons or groups which may affect or be affected by the activities of an organization like a corporation are called ________.

Bank-based regimes,like that of Korea and Germany,are characterized by government influence in bank lending,lack of transparency,and family control.

Depending on the marketplace,an outside investor may conduct what is termed a ________,slowly accumulating shares over time,gradually gaining more and more relative equity and voting strength.

In some countries,the management of the corporation strives to operate the firm in the interest of multiple stakeholders,not just the shareholders.It is generally referred to as:

________ refers to the pursuit of the interests of corporate shareholders,primarily the profitability of the organization,over and above the interests of other stakeholders.

Joe was hired by a corporation to provide an external professional opinion as to the fairness,legality,and accuracy of corporate financial statements.He tries to determine whether the firm's financial records follow generally accepted accounting principles with regard to accounting procedures.Joe is a(n):

The ________is the most common form of business organization which has all of the rights and responsibilities as that of an individual,while possessing limited liability to its owners.

The privately held firm does not have a share price.It,therefore,simply focuses on generating current income,primarily dividend income,to generate the returns to its ownership.

A recent study of firms included in the S&P500 found that families are present in ________ percent of the S&P500.

The two primary financial stakeholders of a firm,the providers of capital for both investment and operation,are ________ and ________.

It is estimated that the average senior executive in the United States today receives ________ times the pay of the company's lowest-paid worker.

The ________ stakeholders of a firm are all those employed by the firm,including management and leadership.

Joshua is a member of management at the firm where he works,Great Coffee Company.Lately he has been studying how shareholder and management interests diverge and how his firm can motivate its management to act like owners when managing the corporation.Joshua is utilizing the ________ field of thought.

The Sarbanes-Oxley Act has been an effective tool in the reformation of corporate governance.As a result,it has become widely accepted and adopted by firms internationally.

________ is the corporate pursuit of long-term profitability and viability while making positive contributions to both society and the environment.

The management objective of maximizing profit is relatively simple because the measure of profit used by ownership/management is the same between the privately held firm and the publicly traded firm.

Stakeholder capitalism has its own set of challenges.Finding common ground between multiple stakeholder interests often proves daunting,slowing decision making and often the ability to move quickly enough to remain competitive.

A right is when a person or group is potentially affected by the actions of an organization or firm.

The New York Stock Exchange (NYSE)is an example of a(n):