Question 1

An investment decision that combines the search for financial returns with the achievement of social, ethical, and environmental goals is known as __________

Accepted Answer

Socially responsible investment

Question 2

_______ such as Fitch Ratings, and ________ such as Deloitte are charged with providing a _______ and fair representation of the financial position of a large firm.

Accepted Answer

A)  Credit rating agencies, Accounting firms, True 
B)  Banks, Accounting firms, True 
C)  Accounting firms, Banks, Partial 
D)  Credit rating agencies, Hedge funds, Partial A,B,C

Question 3

Correctly complete the comparison of corporate governance regimes globally, with respect to ownership identity.
-Anglo-American model

Accepted Answer

A)  Individuals, pensions and mutual funds 
B)  Banks, corporations, state 
C)  Families, foreign investors, banks 
D)  State, families, corporations A

Question 4

Correctly complete the comparison of corporate governance regimes globally, with respect to ownership identity.
-India

Accepted Answer

A)  Individuals, pensions and mutual funds 
B)  Banks, corporations, state 
C)  Families, foreign investors, banks 
D)  State, families, corporations

Question 5

In the Anglo-American and Asian context, the board of directors typically has two-tiers, while in continental Europe a single tier board is the norm.

Accepted Answer

The answer of In the Anglo-American and Asian context, the...

Question 6

According to Crane et al, which of the following is NOT an alternative form of ownership of corporations?
incorrect

Accepted Answer

A)  State-owned firms 
B)  Co-operatives 
C)  Social purpose corporations 
D)  Limited Liability Corporations

Question 7

According to Shankman (1999), two features make agency relations special. One of these is the inherent conflict of interest between shareholders and managers. What is the other?

Accepted Answer

A)  Short-term focus of the ownership goals. 
B)  Limited communication between owners and managers. 
C)  Large differences in defined rights and obligations. 
D)  Informational asymmetry between principal and agent.

Question 8

Please complete the following definition (two missing words): ___________describes the rules, processes and structures through which corporations are directed and controlled in the interests of shareholders and other stakeholders'.

Accepted Answer

The answer of Please complete the following definition (two missing...

Question 9

Three ethical issues associated with executive pay in firm-shareholder relations are: the issue of designing appropriate performance related pay, the influence of globalization on executive pay and the limited influence of the board in ensuring shareholder interests are championed.

Accepted Answer

A) True 
 B)False

Question 10

The breadth in skills, backgrounds, age, gender, ethnicity and sexual orientation possessed by the non-executive and executive directors of a company is often referred to as?

Accepted Answer

The answer of The breadth in skills, backgrounds, age, gender,...

Question 11

Ballwieser and Clemm (1999) identify five main problematic aspects of the financial intermediary's job. Which of the following is not one of them?

Accepted Answer

A)  Conflict of interest. 
B)  Ratings are frequently unreliable. 
C)  The size of the financial intermediary firms threaten standards. 
D)  Long-term relationships with clients can threaten independence.

Question 12

Cooperatives are owned and run by their managers.

Accepted Answer

A) True 
 B)False

Question 13

Correctly complete the comparison of corporate governance regimes globally, with respect to ownership identity.
-Rhenish capitalism

Accepted Answer

A)  Individuals, pensions and mutual funds 
B)  Banks, corporations, state 
C)  Families, foreign investors, banks 
D)  State, families, corporations

Question 14

There are numerous ethical issues around executive pay. Which of these do Crane et al identify as a reason that executive pay touches an ethical chord with the public in many countries?

Accepted Answer

A)  The pay differentials between those at the top and those at the bottom appear to be highly inequitable. 
B)  It is difficult to design appropriate performance-related pay. 
C)  Shifts in remuneration show the influence of globalization on executive pay. 
D)  The influence of the board is limited, often failing to reflect shareholder (or other stakeholder) interests.

Question 15

Mackenzie (1998) identifies two types of SRI funds. Market-led funds choose the firms to invest in following the indication of the market. Deliberative funds, meanwhile, base their portfolio decisions on:

Accepted Answer

A)  Their ability to engage in dialogue with companies. 
B)  Their own ethical criteria. 
C)  Data from research agencies. 
D)  A range of negative criteria.

Question 16

Correctly complete the comparison of corporate governance regimes globally, with respect to ownership identity.
-China

Accepted Answer

A)  Individuals, pensions and mutual funds 
B)  Banks, corporations, state 
C)  Families, foreign investors, banks 
D)  State, families, corporations

Question 17

Crane et al. discuss steps that can be taken to make supervisory, non-executive, board members more independent. Choose all that apply.

Accepted Answer

A)  Non-executive board members should be appointed independently. 
B)  Non-executive board members should be drawn from outside the company. 
C)  Non-executive board members should be appointed for a limited time. 
D)  Board members should have executive experience in the industry.

Question 18

The _______ in a company plays a key role in managing the _______ relationship, as it appoints the CEO, determines their salary and holds their ________ to account.

Accepted Answer

The answer of The _______ in a company plays a...

Exam 6: Shareholders and Business

An investment decision that combines the search for financial returns with the achievement of social, ethical, and environmental goals is known as __________

_ such as Fitch Ratings, and such as Deloitte are charged with providing a _ and fair representation of the financial position of a large firm.

Correctly complete the comparison of corporate governance regimes globally, with respect to ownership identity. -Anglo-American model

Correctly complete the comparison of corporate governance regimes globally, with respect to ownership identity. -India

In the Anglo-American and Asian context, the board of directors typically has two-tiers, while in continental Europe a single tier board is the norm.

According to Crane et al, which of the following is NOT an alternative form of ownership of corporations? incorrect

According to Shankman (1999) , two features make agency relations special. One of these is the inherent conflict of interest between shareholders and managers. What is the other?

Please complete the following definition (two missing words): ___________describes the rules, processes and structures through which corporations are directed and controlled in the interests of shareholders and other stakeholders'.

Three ethical issues associated with executive pay in firm-shareholder relations are: the issue of designing appropriate performance related pay, the influence of globalization on executive pay and the limited influence of the board in ensuring shareholder interests are championed.

The breadth in skills, backgrounds, age, gender, ethnicity and sexual orientation possessed by the non-executive and executive directors of a company is often referred to as?

Ballwieser and Clemm (1999) identify five main problematic aspects of the financial intermediary's job. Which of the following is not one of them?

Cooperatives are owned and run by their managers.

Correctly complete the comparison of corporate governance regimes globally, with respect to ownership identity. -Rhenish capitalism

There are numerous ethical issues around executive pay. Which of these do Crane et al identify as a reason that executive pay touches an ethical chord with the public in many countries?

Mackenzie (1998) identifies two types of SRI funds. Market-led funds choose the firms to invest in following the indication of the market. Deliberative funds, meanwhile, base their portfolio decisions on:

Correctly complete the comparison of corporate governance regimes globally, with respect to ownership identity. -China

Crane et al. discuss steps that can be taken to make supervisory, non-executive, board members more independent. Choose all that apply.

The ___ in a company plays a key role in managing the _ relationship, as it appoints the CEO, determines their salary and holds their ______ to account.