Exam 13: Corporate Governance in the Twenty-First Century

When board members are asked why they would invest the required time and effort in another firm's success, they often respond that it is because of the ________ component.

The company that is credited with making the word's first handheld scientific calculator is Texas Instruments.

When a company raises capital through an IPO, it generally exchanges only a small portion of the firm's stock for financial capital.

What are some of the advantages of bonus plan incentives?

Simply adding more board members is an excellent way to improve CEO and board member interaction.

In countries when ownership is highly concentrated, owners typically have low levels of influence over corporate affairs.

What is the difference between a public and private firm?

Codes of governance target all of the following areas except ________.

One of the key roles of the board of directors is to replace management when necessary.

Briefly discuss the history of the Cadbury Code.

An individual who acts on behalf of others is referred to as a(n) ________.

In French and German companies, it is relatively difficult for owners to nominate and elect members of the board.

Discuss the dispersion of stock ownership.

Managers of public pension funds seem to prefer to invest in firms that attempt to acquire innovations through acquisitions.

Briefly explain the board's role of monitoring.

_____ do not make executives bear any financial risk.

In which of the following countries are national and state governments not usually the major shareholders of public companies?

The presence of a powerful owner removes all forms of agency problems.

Research suggests that social ties between CEOs and board members lessen the risks for shareholders.

What is the market for corporate control?