Exam 2: Corporate Governance

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Population theory states that problems arise in corporations because the agents (top management) are not willing to bear responsibility for their decisions unless they own a substantial amount of stock in the corporation.

(True/False)
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Korn/Ferry International reported that amongst the 100 largest companies listed in 2011 ________ of boards of directors had at least one female director.

(Multiple Choice)
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A benefit of the increased disclosure requirements of the Sarbanes-Oxley Act has been more reliable corporate financial statements.

(True/False)
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The vast majority of inside directors are from all of the following EXCEPT

(Multiple Choice)
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What are the responsibilities of top management?

(Essay)
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Research reveals that the likelihood of a firm engaging in illegal behavior or being sued declines

(Multiple Choice)
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An agency problem can occur when

(Multiple Choice)
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All of the following are true of overconfident CEOs EXCEPT

(Multiple Choice)
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A direct interlocking directorate occurs when two corporations have directors who also serve on the board of a third firm.

(True/False)
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According to the text,which of the following is not a typical standing committee of boards of directors?

(Multiple Choice)
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The role of the board of directors in reviewing,evaluating,and shaping corporate strategy is likely to be less active in the future.

(True/False)
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Catalyst-level boards of directors typically

(Multiple Choice)
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A staggered board

(Multiple Choice)
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The majority of outside directors are active or retired CEOs and COOs of other corporations.

(True/False)
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The more active professional boards are being replaced by the board as a rubber stamp of the CEO.

(True/False)
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Transformational leaders transform organizations from market leaders in one industry to market leadership in another.

(True/False)
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According to a survey of 156 large corporations,in what percentage of the firms were strategies first proposed in business units and then sent to headquarters for approval?

(Multiple Choice)
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The SEC requires that the audit,nominating,and compensation committees be staffed entirely by outside directors.

(True/False)
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According to the research,in turbulent environments,the best type of planning is

(Multiple Choice)
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The negative side of confident executive leaders is that their very confidence may lead to hubris,in which their confidence blinds them to information that is contrary to a decided course of action.

(True/False)
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