Exam 10: Corporate Governance and Reform

Corporate governance of any organization,publicly traded or not,must focus on all of the following basic principles EXCEPT:

ABC Oil Company went bankrupt after it was discovered that the company had engaged in accounting fraud and questionable business ethics.In recent years,failures in ________ have raised issues about the very ethics and culture of the conduct of business.

A business may be owned by a single individual,a few private individuals,a multitude of private owners who may exchange their ownership portions,or even partially or wholly by government.

Define and describe maximization of shareholder value and stakeholder capitalism.

Based upon a recent survey,the public holds greater faith in business to do what is right (for society)in India and China than in the United States and the United Kingdom.

Which of the following is NOT a significant result when a firm begins its initial sale of shares to the public in the United States?

XYZ Suppliers,Inc.supplies the trees needed for production of paper at the ABC Paper Company.XYZ Suppliers are ________ stakeholders.

Stakeholder capitalism implies that the stockholder is the primary stakeholder,and all other stakeholders are of lesser priority.

________ is a relationship between two parties whereby one party has the trust and legal and ethical duty to act in the best interests of the others.

Which of the following is NOT a major requirement of the Sarbanes-Oxley Act?

List and briefly describe the five structures of corporate governance.

According to Milton Friedman in The New York Times Magazine,"The social responsibility of business is to increase its ________."

Management at Yummy Bread Corporation believes that a responsible organization must ensure that its actions over time,whether or not required by law or markets,conduct its business in a way which does not reduce future choices.Yummy Bread Corporation is operating on the ________ channel.

A(n)________is the most common form of business organization which has all of the rights and responsibilities as that of an individual,while possessing limited liability to its owners.

________is the dividend paid per share to shareholders as a percent of the current share price.

The creation of the corporation freed the business entity to act as if a machine,devoid of the multitude of social,cultural,and moral concerns of the human individual.

The ________ channel argues that because the corporation has all the rights and responsibilities of a citizen,it also has the responsibility to act in the best interests of society and society's future.

Best Flowers is currently a private firm.Within the next 6 months,the company plans to issue shares of its stock to the market for the first time.Best Flowers is about to schedule a(n):

________ is the pursuit of the interests of corporate shareholders,primarily the profitability of the organization,over and above the interests of other stakeholders.

Countries such as Hong Kong,Indonesia,Taiwan,and France utilize the ______ comparative corporate governance regime.