Question 1

The Public Company Accounting Oversight Board sets standards and rules for audit reports.

Accepted Answer

A) True 
 B)False

Question 2

How has the Sarbanes-Oxley Act impacted publicly held companies in the United States?

Accepted Answer

Sarbanes-Oxley resulted in the creation

Question 3

What are restricted stock grants?

Accepted Answer

To tie executives' financial rewards to

Question 4

Some research shows that bonus plans can lead to ________.

Accepted Answer

A)  executives looking elsewhere for employment 
B)  the overfunding of pension plans 
C)  the underfunding of R&D initiatives 
D)  questionable accounting practices 
A)  executives looking elsewhere for employment 
B)  the overfunding of pension plans 
C)  the underfunding of R&D initiatives 
D)  questionable accounting practices

Question 5

The Cadbury Code resulted in the creation of the Public Company Accounting Oversight Board.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not a component of the solution to the agency problem?

Accepted Answer

A)  Ensure that shareholders are involved in the day-to-day operations of the firm. 
B)  Ensure that corporate resources and profits are not squandered. 
C)  Ensure that executives will not make choices that benefit themselves at the shareholders' expense. 
D)  Ensure that shareholders will receive a positive return on their investments. 
A)  Ensure that shareholders are involved in the day-to-day operations of the firm. 
B)  Ensure that corporate resources and profits are not squandered. 
C)  Ensure that executives will not make choices that benefit themselves at the shareholders' expense. 
D)  Ensure that shareholders will receive a positive return on their investments.

Question 7

Discuss some of the pros and cons of having the CEO and chair positions split.

Accepted Answer

Debate continues as to the wisdom of an

Question 8

Which of the following statements best describes blockholders?

Accepted Answer

A)  They control 1 percent of a firm's shares. 
B)  Their ownership does not have to be disclosed. 
C)  They are considered powerful. 
D)  They are always corporate executives. 
A)  They control 1 percent of a firm's shares. 
B)  Their ownership does not have to be disclosed. 
C)  They are considered powerful. 
D)  They are always corporate executives.

Question 9

Given a lack of traditional indicators of quality, analysts will turn to secondary information sources as the indicators of the underlying quality of risky firms.

Accepted Answer

A) True 
 B)False

Question 10

The market will frequently place higher valuations on risky firms with poor governance characteristics.

Accepted Answer

A) True 
 B)False

Question 11

Firms in which CEOs collaborate with board members on an informal basis perform worse than those where the relationships remain more formalized.

Accepted Answer

A) True 
 B)False

Question 12

Market valuations of traditional firms are always linked to the firms' corporate governance characteristics.

Accepted Answer

A) True 
 B)False

Question 13

The system by which organizations are directed and controlled by their owners is called ________ governance.

Accepted Answer

A)  corporate 
B)  business 
C)  organizational 
D)  company 
A)  corporate 
B)  business 
C)  organizational 
D)  company

Question 14

Directors may be more effective as monitors if they are linked to certain firms given the environmental turbulence facing the focal firms.

Accepted Answer

A) True 
 B)False

Question 15

In ________, ownership concentration serves as a control mechanism and affects how resources are allocated in the firm.

Accepted Answer

A)  Germany 
B)  Japan 
C)  France 
D)  the United States 
A)  Germany 
B)  Japan 
C)  France 
D)  the United States

Question 16

Executive compensation may be structured to overcome all possible conflicts of interest.

Accepted Answer

A) True 
 B)False

Question 17

Executives with large proportions of their pay packages derived from stock options tend to be extremely risk averse.

Accepted Answer

A) True 
 B)False

Question 18

The idea that every public company is theoretically for sale is called ________.

Accepted Answer

A)  the market for corporate control 
B)  mergerability 
C)  takeover susceptibility 
D)  perennial saleability 
A)  the market for corporate control 
B)  mergerability 
C)  takeover susceptibility 
D)  perennial saleability

Question 19

When a CEO is fired for performance reasons, it is more likely that the board will recruit an insider as a replacement.

Accepted Answer

A) True 
 B)False

Question 20

Compare and contrast the traditional and retention forms of stock ownership programs.

Accepted Answer

Ownership guidelines are generally group

The Public Company Accounting Oversight Board sets standards and rules for audit reports.

How has the Sarbanes-Oxley Act impacted publicly held companies in the United States?

What are restricted stock grants?

Some research shows that bonus plans can lead to ________.

The Cadbury Code resulted in the creation of the Public Company Accounting Oversight Board.

Which of the following is not a component of the solution to the agency problem?

Discuss some of the pros and cons of having the CEO and chair positions split.

Which of the following statements best describes blockholders?

Given a lack of traditional indicators of quality, analysts will turn to secondary information sources as the indicators of the underlying quality of risky firms.

The market will frequently place higher valuations on risky firms with poor governance characteristics.

Firms in which CEOs collaborate with board members on an informal basis perform worse than those where the relationships remain more formalized.

Market valuations of traditional firms are always linked to the firms' corporate governance characteristics.

The system by which organizations are directed and controlled by their owners is called ________ governance.

Directors may be more effective as monitors if they are linked to certain firms given the environmental turbulence facing the focal firms.

In ________, ownership concentration serves as a control mechanism and affects how resources are allocated in the firm.

Executive compensation may be structured to overcome all possible conflicts of interest.

Executives with large proportions of their pay packages derived from stock options tend to be extremely risk averse.

The idea that every public company is theoretically for sale is called ________.

When a CEO is fired for performance reasons, it is more likely that the board will recruit an insider as a replacement.

Compare and contrast the traditional and retention forms of stock ownership programs.

Introducing Strategic Management

Leading Strategically Through Effective Vision and Mission

Examining the Internal Environment: Resources

Exploring the External Environment: Macro Industry and Dynamics

Creating Business Strategies

Crafting Business Strategy of Dynamic Contexts

Developing Corporate Strategy

Looking at International Strategies

Understanding Alliances and Cooperative Strategies

Studying Merges and Acquisitions

Organizational Structure, Systems, and Processes

Considering New Ventures and Corporate Renewal

Filters

Exam 13: Corporate Governance in the Twenty-First Century

The Public Company Accounting Oversight Board sets standards and rules for audit reports.

How has the Sarbanes-Oxley Act impacted publicly held companies in the United States?

What are restricted stock grants?

Some research shows that bonus plans can lead to ________.

The Cadbury Code resulted in the creation of the Public Company Accounting Oversight Board.

Which of the following is not a component of the solution to the agency problem?

Discuss some of the pros and cons of having the CEO and chair positions split.

Which of the following statements best describes blockholders?

Given a lack of traditional indicators of quality, analysts will turn to secondary information sources as the indicators of the underlying quality of risky firms.

The market will frequently place higher valuations on risky firms with poor governance characteristics.

Firms in which CEOs collaborate with board members on an informal basis perform worse than those where the relationships remain more formalized.

Market valuations of traditional firms are always linked to the firms' corporate governance characteristics.

The system by which organizations are directed and controlled by their owners is called ________ governance.

Directors may be more effective as monitors if they are linked to certain firms given the environmental turbulence facing the focal firms.

In ________, ownership concentration serves as a control mechanism and affects how resources are allocated in the firm.

Executive compensation may be structured to overcome all possible conflicts of interest.

Executives with large proportions of their pay packages derived from stock options tend to be extremely risk averse.

The idea that every public company is theoretically for sale is called ________.

When a CEO is fired for performance reasons, it is more likely that the board will recruit an insider as a replacement.

Compare and contrast the traditional and retention forms of stock ownership programs.

Introducing Strategic Management

Leading Strategically Through Effective Vision and Mission

Examining the Internal Environment: Resources

Exploring the External Environment: Macro Industry and Dynamics

Creating Business Strategies

Crafting Business Strategy of Dynamic Contexts

Developing Corporate Strategy

Looking at International Strategies

Understanding Alliances and Cooperative Strategies

Studying Merges and Acquisitions

Organizational Structure, Systems, and Processes

Considering New Ventures and Corporate Renewal

Filters