Multiple Choice
Several members of the board of directors of American Textile Products (ATP) have proposed creating the position of lead director.Which of the following circumstances would MOST likely have initiated this proposal?
A) ATP has been the initiator of several hostile takeovers in the last two years.
B) The board has been successful in reducing the percentage of CEO pay that is composed of stock options.
C) The CEO/chairperson of the board has been suspected of opportunistic behavior.
D) The firm is traded on the New York Stock Exchange and must change its corporate governance to comply with the NYSE's new rules.
Correct Answer:
Verified
Correct Answer:
Verified
Q115: Corporate governance involves oversight in areas where
Q116: Ownership of many modern corporations is now
Q117: In the modern large U.S.corporation, the ownership
Q118: A top-level manager's reputation is a dependable
Q119: Define the agency relationship and managerial opportunism
Q121: Foreign investors are playing a relatively minor
Q122: The ownership of major blocks of stock
Q123: The CEO of Skyco, a publicly traded
Q124: Product diversification provides two benefits to managers
Q125: The three internal corporate governance mechanisms are