Question 1

English common law countries tend to provide a stronger protection of shareholder rights than French civil law countries because:

Accepted Answer

A)  the former countries tend to be more democratic than the latter. 
B)  the former countries tend to protect property rights better than the latter. 
C)  the former countries tend to have more separation of power than the latter. 
D)  All of these. 
A)  the former countries tend to be more democratic than the latter. 
B)  the former countries tend to protect property rights better than the latter. 
C)  the former countries tend to have more separation of power than the latter. 
D)  All of these.

Question 2

The central issue of corporate governance is:

Accepted Answer

A)  how to protect creditors from managers and controlling shareholders. 
B)  how to protect outside investors from the controlling insiders. 
C)  how to alleviate the conflicts of interest between managers and shareholders. 
D)  how to alleviate the conflicts of interest between shareholders and bondholders. 
A)  how to protect creditors from managers and controlling shareholders. 
B)  how to protect outside investors from the controlling insiders. 
C)  how to alleviate the conflicts of interest between managers and shareholders. 
D)  how to alleviate the conflicts of interest between shareholders and bondholders.

Question 3

Free cash flows refer to:

Accepted Answer

A)  a firm's cash reserve in excess of tax obligation. 
B)  a firm's funds in excess of what's needed for undertaking all profitable projects. 
C)  a firm's cash reserve in excess of interest and tax payments. 
D)  a firm's income tax refund that is due to interest payments on borrowing. 
A)  a firm's cash reserve in excess of tax obligation. 
B)  a firm's funds in excess of what's needed for undertaking all profitable projects. 
C)  a firm's cash reserve in excess of interest and tax payments. 
D)  a firm's income tax refund that is due to interest payments on borrowing.

Question 4

Explain the agency problem and how it can be remedied.

Accepted Answer

The agency problem arises out of the fac

Question 5

Commercial legal systems of most countries are derived from four legal origins.Which of the following is not one of them?

Accepted Answer

A)  English Common law. 
B)  French Common law. 
C)  German Common law. 
D)  Italian common law. 
A)  English Common law. 
B)  French Common law. 
C)  German Common law. 
D)  Italian common law.

Question 6

The main weakness of the 'public corporation' is:

Accepted Answer

A)  too many shareholders, which makes it difficult to make corporate decision. 
B)  relatively high corporate income tax rates. 
C)  conflicts of interest between managers and shareholders. 
D)  conflicts of interests between shareholders and bondholders. 
A)  too many shareholders, which makes it difficult to make corporate decision. 
B)  relatively high corporate income tax rates. 
C)  conflicts of interest between managers and shareholders. 
D)  conflicts of interests between shareholders and bondholders.

Question 7

Debt may be beneficial for the following reasons except:

Accepted Answer

A)  because it reduces free cash flows. 
B)  because of its disciplinary effect on managers. 
C)  because the interest payments benefit shareholders. 
D)  because interest has to be paid to avoid bankruptcy. 
A)  because it reduces free cash flows. 
B)  because of its disciplinary effect on managers. 
C)  because the interest payments benefit shareholders. 
D)  because interest has to be paid to avoid bankruptcy.

Question 8

Which of the following statements is true for a complete contract?

Accepted Answer

A)  Such contracts are already fulfilled by both parties. 
B)  There is no agency problem for compete contract. 
C)  Complete contract specifies a fixed wage regardless of performance. 
D)  None of these. 
A)  Such contracts are already fulfilled by both parties. 
B)  There is no agency problem for compete contract. 
C)  Complete contract specifies a fixed wage regardless of performance. 
D)  None of these.

English common law countries tend to provide a stronger protection of shareholder rights than French civil law countries because:

The central issue of corporate governance is:

Free cash flows refer to:

Explain the agency problem and how it can be remedied.

Commercial legal systems of most countries are derived from four legal origins.Which of the following is not one of them?

The main weakness of the 'public corporation' is:

Debt may be beneficial for the following reasons except:

Which of the following statements is true for a complete contract?

Globalization and the Multinational Firm

International Monetary System

Balance of Payments

The Market for Foreign Exchange

International Parity Relationships and Forecasting Foreign Exchange Rates

International Banking and Money Market

International Bond Market

International Equity Markets

Futures and Options on Foreign Exchange

Interest Rate and Currency Swaps

International Portfolio Investment

Management of Economic Exposure

Management of Transaction Exposure

Management of Translation Exposure

Foreign Direct Investment and Cross-Border Acquisitions

International Capital Structure and the Cost of Capital

International Capital Budgeting

Multinational Cash Management

Exports and Imports

International Tax Environment

Filters

Exam 21: Corporate Governance Around the World

English common law countries tend to provide a stronger protection of shareholder rights than French civil law countries because:

The central issue of corporate governance is:

Free cash flows refer to:

Explain the agency problem and how it can be remedied.

Commercial legal systems of most countries are derived from four legal origins.Which of the following is not one of them?

The main weakness of the 'public corporation' is:

Debt may be beneficial for the following reasons except:

Which of the following statements is true for a complete contract?

Globalization and the Multinational Firm

International Monetary System

Balance of Payments

The Market for Foreign Exchange

International Parity Relationships and Forecasting Foreign Exchange Rates

International Banking and Money Market

International Bond Market

International Equity Markets

Futures and Options on Foreign Exchange

Interest Rate and Currency Swaps

International Portfolio Investment

Management of Economic Exposure

Management of Transaction Exposure

Management of Translation Exposure

Foreign Direct Investment and Cross-Border Acquisitions

International Capital Structure and the Cost of Capital

International Capital Budgeting

Multinational Cash Management

Exports and Imports

International Tax Environment

Filters