Exam 13: Corporate Governance in the Twenty-First Century

In the majority of U.S. public firms, the CEO also serves as the chair of the board of directors.

The chief monitoring device available to shareholders is the federal government.

The general responsibility of the board of directors is to ensure that executives are acting in their own best interests.

In the corporate world, the "triple bottom line" involves all except ________ objectives.

All of the following are possible incentive alignment mechanisms except ________.

CEO-board interactions are maximized when the selection of outside board members matches the competitive environment facing the firm.

What is a stock option?

The main logic for splitting the posts of CEO and board chair is ________.

A pension fund that manages large sums of money for third-party investors is referred to as a(n) ________.

The effects of governance mechanisms are dependent on the national context.

The burden placed on firms by their nation's codes of best practice varies across the globe.

In what ways is corporate governance related to strategy formulation and implementation?

Outsiders are more likely to deploy strategies that lead their firms to underperform their competitors.

What is a stock option? Identify the advantages and disadvantages to stock option incentives.

Social ties between CEOs and board members increase board involvement.

Board members may provide access to external resources such as ________.

What are long-term incentive plans? Give examples.

Corporate governance is responsible for all except which of the following?

What are some of the possible disadvantages to having outside directors?

If companies use the retention form of stock ownership, they are concerned with keeping track of the total stock option granted.