Exam 37: Corporate Governance and the Sarbanes-Oxley Act

Samson owns 1,500 shares out of the 10,000 outstanding shares of Comakote Corporation.If Comakote declares a stock dividend of 30 percent,what will be the total stock Samson has upon receiving his stock dividend?

The written document submitted by a person who has been authorized by a shareholder to vote the shareholder's shares at the shareholders' meetings in the event of the shareholder's absence is known as the ________.

A(n)________ is a member of a board of directors who is not an officer of the corporation.

According to the Sarbanes-Oxley Act,the ________,a federal government agency,may issue an order prohibiting any person who has committed securities fraud from acting as an officer or a director of a public company.

Jameson works for Fishy-Mart Corporation,a chain of superstores that sell large quantities of seafood.His job is to locate future sites for Fishy-Mart stores.Jameson finds a piece of land near a coastline that would make a great site for a Fishy-Mart store.Jameson makes his friend purchase the property from its current owner.After that,they sell the property to Fishy-Mart and share the profits.Jameson does not disclose his interest in the property while recommending the site to Fishy-Mart.Which of the following duties of loyalty has Jameson breached in this scenario?

In a voting trust,the legal titles to the shares given to the trustee are held in the name of the shareholders.

A lawsuit a shareholder brings against an offending party on behalf of a corporation when the corporation itself fails to bring the lawsuit is known as a ________.

What is the CEO and CFO provision laid out by the Sarbanes-Oxley Act of 2002?

Marshall is the purchasing agent for DigitoolArt Corporation.His job requires him to negotiate and execute contracts for purchasing office supplies and equipment for the corporation.Assume that Bronson,a computer salesperson,pays Marshall a $20,000 kickback to purchase from him computers needed by DigitoolArt Corporation.Which of the following duties of loyalty has Marshall breached in this scenario?

To prove usurping by a director or an officer,a corporation must have the financial ability to take advantage of the usurped opportunity.

The Sarbanes-Oxley Act contains provisions for prosecuting U.S.firms that bribe foreign officials.

Shareholders of a corporation act as agents of the corporation.

Which of the following is a federal statute that deals with corporate bribery between U.S.companies and officials of other countries?

Shareholders elect a panel of decision makers known as the ________.

The ________ Act prohibits public companies from making personal loans to their directors or executive officers.

The determination of whether a corporate director or officer has met his or her duty of care is measured in hindsight.

________ are employees of a corporation who are appointed by the board of directors to manage the day-to-day operations of the corporation.

The secret profits obtained by a director or officer cannot be recovered by a corporation.

What is the supramajority voting requirement for shareholders?

Which of the following is true of shareholders?