Question 1

Rules of corporate governance adopted by corporations are called:

Accepted Answer

A)  policies. 
B)  articles of incorporation. 
C)  bylaws. 
D)  standing rules. 
A)  policies. 
B)  articles of incorporation. 
C)  bylaws. 
D)  standing rules. C

Question 2

These cannot be sold until certain conditions are met,most often the lapse of a time period or meeting a performance goal.

Accepted Answer

A)  Performance shares 
B)  Perquisites 
C)  Stock options 
D)  Restricted stock 
A)  Performance shares 
B)  Perquisites 
C)  Stock options 
D)  Restricted stock D

Question 3

Describe the typical duties of boards of directors for U.S.corporations.

Accepted Answer

All of the following are the typical duties of the board of directors of U.S.corporations:
•Approving the issuance of securities and the voting rights of their holders.
•Reviewing and approving the corporation's goals and strategies.
•Selecting the CEO,evaluating his/her performance,and removing the CEO if necessary.
•Giving advice and counsel to management.
•Creating governance policies for the firm,including compensation policies.
•Evaluating the performance of individual directors,board committees,and the board as a whole.
•Nominating candidates to be presented to the stockholders for election as directors.
•Exercising oversight of ethics and compliance programs.

Question 4

Name the document sent to shareholders before the annual meeting that sets forth matters requiring their vote.

Accepted Answer

A)  Proxy statement 
B)  Charter 
C)  Share certificate 
D)  Financial report 
A)  Proxy statement 
B)  Charter 
C)  Share certificate 
D)  Financial report

Question 5

Which of the following is a major duty that state incorporation laws impose on boards of directors?

Accepted Answer

A)  To exercise due diligence in supervising shareholders. 
B)  To represent the interests of stockholders by conducting a profitable business that enhances share value. 
C)  To make day-to-day management decisions. 
D)  To put their own self-interests ahead of the shareholders. 
A)  To exercise due diligence in supervising shareholders. 
B)  To represent the interests of stockholders by conducting a profitable business that enhances share value. 
C)  To make day-to-day management decisions. 
D)  To put their own self-interests ahead of the shareholders.

Question 6

The right to buy a company's stock at a fixed price and under the conditions set by the company's board of directors is called a:

Accepted Answer

A)  stock grant. 
B)  stock option. 
C)  stock answer. 
D)  stock bid. 
A)  stock grant. 
B)  stock option. 
C)  stock answer. 
D)  stock bid.

Question 7

With a restricted stock,the recipient receives dividends and can vote the shares but cannot sell them until the restriction is lifted.

Accepted Answer

A) True 
 B)False

Question 8

All of the following statements are true of the requirements of proxy statements EXCEPT:

Accepted Answer

A)  the proposal cannot exceed 1,000 words. 
B)  a shareholder may submit only one proposal for a particular shareholder meeting. 
C)  stockholders must own $2,000 or more shares for at least one year. 
D)  a proposal should receive no less than 3 percent of vote to be presented at the next shareholder meeting. 
A)  the proposal cannot exceed 1,000 words. 
B)  a shareholder may submit only one proposal for a particular shareholder meeting. 
C)  stockholders must own $2,000 or more shares for at least one year. 
D)  a proposal should receive no less than 3 percent of vote to be presented at the next shareholder meeting.

Question 9

Shares of company stock awarded after a fixed period of years if individual and company performance goals are met are called:

Accepted Answer

A)  time shares. 
B)  performance shares. 
C)  stock options. 
D)  restricted stock. 
A)  time shares. 
B)  performance shares. 
C)  stock options. 
D)  restricted stock.

Question 10

Usually,CEO pay is determined by:

Accepted Answer

A)  market forces in the competition for managerial talent. 
B)  managerial power. 
C)  assets under management. 
D)  their ability to set their own pay. 
A)  market forces in the competition for managerial talent. 
B)  managerial power. 
C)  assets under management. 
D)  their ability to set their own pay.

Question 11

The Securities and Exchange Commission (SEC)regulations stipulate that a company must include a shareholder's proposal in its proxy statement if it meets specified requirements.

Accepted Answer

A) True 
 B)False

Question 12

According to the Dodd-Frank Act,shareholders who want to run a board candidate have to contact other shareholders at their own very high expense.

Accepted Answer

A) True 
 B)False

Question 13

When compensation committees base salaries and bonuses on median levels in a group of peer companies,they often choose larger peers.

Accepted Answer

A) True 
 B)False

Question 14

The average board of directors has five members and this has not changed for many years.

Accepted Answer

A) True 
 B)False

Question 15

Which Act did Congress pass in 1933 that required companies to register securities and provide financial statements and other information to buyers before their sale?

Accepted Answer

A)  The Securities Act 
B)  The Securities Exchange Act 
C)  The Sarbanes-Oxley Act 
D)  The Uniform Securities Act 
A)  The Securities Act 
B)  The Securities Exchange Act 
C)  The Sarbanes-Oxley Act 
D)  The Uniform Securities Act

Question 16

Which of the following are also called articles of incorporation?

Accepted Answer

A)  Stock options 
B)  Share certificates 
C)  Charters 
D)  Perquisites 
A)  Stock options 
B)  Share certificates 
C)  Charters 
D)  Perquisites

Question 17

What is restricted stock?

Accepted Answer

Restricted stock is a grant of stock wit

Question 18

According to the Dodd-Frank Act,at least once every three years companies have to submit their executive compensation packages to a stockholder vote,which is binding.

Accepted Answer

A) True 
 B)False

Question 19

According to the Sarbanes-Oxley Act of 2002,criminal violations can lead to fines of up to:

Accepted Answer

A)  $100,000. 
B)  $50 million and lengthy prison terms. 
C)  $5 million and a minimum of 20 years in prison. 
D)  $10,000 and a maximum of one year of imprisonment. 
A)  $100,000. 
B)  $50 million and lengthy prison terms. 
C)  $5 million and a minimum of 20 years in prison. 
D)  $10,000 and a maximum of one year of imprisonment.

Question 20

Identify the correct statement about shareholder influence.

Accepted Answer

A)  Shareholders often exercise their voting power to replace management. 
B)  In corporate elections,stockholders cannot vote for another candidate. 
C)  If stockholders submit nominees to board nominating committees,the directors have to accept them. 
D)  Most shareholders do not follow management's voting recommendations. 
A)  Shareholders often exercise their voting power to replace management. 
B)  In corporate elections,stockholders cannot vote for another candidate. 
C)  If stockholders submit nominees to board nominating committees,the directors have to accept them. 
D)  Most shareholders do not follow management's voting recommendations.

Rules of corporate governance adopted by corporations are called:

These cannot be sold until certain conditions are met,most often the lapse of a time period or meeting a performance goal.

Describe the typical duties of boards of directors for U.S.corporations.

Name the document sent to shareholders before the annual meeting that sets forth matters requiring their vote.

Which of the following is a major duty that state incorporation laws impose on boards of directors?

The right to buy a company's stock at a fixed price and under the conditions set by the company's board of directors is called a:

With a restricted stock,the recipient receives dividends and can vote the shares but cannot sell them until the restriction is lifted.

All of the following statements are true of the requirements of proxy statements EXCEPT:

Shares of company stock awarded after a fixed period of years if individual and company performance goals are met are called:

Usually,CEO pay is determined by:

The Securities and Exchange Commission (SEC)regulations stipulate that a company must include a shareholder's proposal in its proxy statement if it meets specified requirements.

According to the Dodd-Frank Act,shareholders who want to run a board candidate have to contact other shareholders at their own very high expense.

When compensation committees base salaries and bonuses on median levels in a group of peer companies,they often choose larger peers.

The average board of directors has five members and this has not changed for many years.

Which Act did Congress pass in 1933 that required companies to register securities and provide financial statements and other information to buyers before their sale?

Which of the following are also called articles of incorporation?

What is restricted stock?

According to the Dodd-Frank Act,at least once every three years companies have to submit their executive compensation packages to a stockholder vote,which is binding.

According to the Sarbanes-Oxley Act of 2002,criminal violations can lead to fines of up to:

Identify the correct statement about shareholder influence.

The Study of Business, Government, and Society

The Dynamic Environment

Business Power

Critics of Business

Corporate Social Responsibility

Implementing Corporate Social Responsibility

Business Ethics

Making Ethical Decisions in Business

Business in Politics

Regulating Business

Multinational Corporations

Globalization, Trade, and Corruption

Industrial Pollution and Environmental Regulation

Managing Environmental Quality

Consumerism

The Changing Workplace

Civil Rights, Women, and Diversity

Filters

Exam 18: Corporate Governance

Rules of corporate governance adopted by corporations are called:

These cannot be sold until certain conditions are met,most often the lapse of a time period or meeting a performance goal.

Describe the typical duties of boards of directors for U.S.corporations.

Name the document sent to shareholders before the annual meeting that sets forth matters requiring their vote.

Which of the following is a major duty that state incorporation laws impose on boards of directors?

The right to buy a company's stock at a fixed price and under the conditions set by the company's board of directors is called a:

With a restricted stock,the recipient receives dividends and can vote the shares but cannot sell them until the restriction is lifted.

All of the following statements are true of the requirements of proxy statements EXCEPT:

Shares of company stock awarded after a fixed period of years if individual and company performance goals are met are called:

Usually,CEO pay is determined by:

The Securities and Exchange Commission (SEC)regulations stipulate that a company must include a shareholder's proposal in its proxy statement if it meets specified requirements.

According to the Dodd-Frank Act,shareholders who want to run a board candidate have to contact other shareholders at their own very high expense.

When compensation committees base salaries and bonuses on median levels in a group of peer companies,they often choose larger peers.

The average board of directors has five members and this has not changed for many years.

Which Act did Congress pass in 1933 that required companies to register securities and provide financial statements and other information to buyers before their sale?

Which of the following are also called articles of incorporation?

What is restricted stock?

According to the Dodd-Frank Act,at least once every three years companies have to submit their executive compensation packages to a stockholder vote,which is binding.

According to the Sarbanes-Oxley Act of 2002,criminal violations can lead to fines of up to:

Identify the correct statement about shareholder influence.

The Study of Business, Government, and Society

The Dynamic Environment

Business Power

Critics of Business

Corporate Social Responsibility

Implementing Corporate Social Responsibility

Business Ethics

Making Ethical Decisions in Business

Business in Politics

Regulating Business

Multinational Corporations

Globalization, Trade, and Corruption

Industrial Pollution and Environmental Regulation

Managing Environmental Quality

Consumerism

The Changing Workplace

Civil Rights, Women, and Diversity

Filters