Question 1

Corporate charters specify the rights and responsibilities of all of the following EXCEPT:

Accepted Answer

A)  directors. 
B)  stockholders. 
C)  officers. 
D)  consumers. 
A)  directors. 
B)  stockholders. 
C)  officers. 
D)  consumers.

Question 2

A proxy card:

Accepted Answer

A)  is also called a proxy statement. 
B)  is a form stockholders mark giving management the right to vote their shares as indicated. 
C)  is an inventory of information sent to stockholders before annual votes on directors. 
D)  contains rules of corporate governance to be adopted by corporations. 
A)  is also called a proxy statement. 
B)  is a form stockholders mark giving management the right to vote their shares as indicated. 
C)  is an inventory of information sent to stockholders before annual votes on directors. 
D)  contains rules of corporate governance to be adopted by corporations.

Question 3

What is meant by grant price?

Accepted Answer

A fixed or grant price is the

Question 4

Most shareholders follow management's voting recommendations.

Accepted Answer

A) True 
 B)False

Question 5

The Sarbanes-Oxley Act requires that accounting firm auditors of a company be rotated every three years.

Accepted Answer

A) True 
 B)False

Question 6

Which state charters the largest number of corporations in the United States?

Accepted Answer

A)  Delaware 
B)  New Jersey 
C)  California 
D)  New York 
A)  Delaware 
B)  New Jersey 
C)  California 
D)  New York

Question 7

Explain what is meant by "corporate governance" and what it includes.

Accepted Answer

Corporate governance is the exercise of

Question 8

This is an independent director who chairs regular board meetings of other independent directors.

Accepted Answer

A)  Inside director 
B)  Lead director 
C)  Internal director 
D)  Vocational director 
A)  Inside director 
B)  Lead director 
C)  Internal director 
D)  Vocational director

Question 9

Which of the following is a major provision of the Sarbanes-Oxley Act?

Accepted Answer

A)  Audit firms are prohibited from doing consulting work for corporations while also auditing their books. 
B)  It creates a Private Company Accounting Oversight Board to oversee accounting firms and improve the accuracy of their audits. 
C)  Every board of directors must create audit committees consisting of independent directors who receive consulting or advisory fees from the company other than their compensation. 
D)  Boards of directors are permitted to,at their discretion,approve personal loans for company executives. 
A)  Audit firms are prohibited from doing consulting work for corporations while also auditing their books. 
B)  It creates a Private Company Accounting Oversight Board to oversee accounting firms and improve the accuracy of their audits. 
C)  Every board of directors must create audit committees consisting of independent directors who receive consulting or advisory fees from the company other than their compensation. 
D)  Boards of directors are permitted to,at their discretion,approve personal loans for company executives.

Question 10

Directors who are employees of the company are called independent directors.

Accepted Answer

A) True 
 B)False

Question 11

The pay of top corporate officers is set by the board of directors.

Accepted Answer

A) True 
 B)False

Question 12

What is the primary focus of the Sarbanes-Oxley Act of 2002?

Accepted Answer

A)  Business bankruptcy 
B)  Pricing practices 
C)  Individual bankruptcy 
D)  Accounting rules 
A)  Business bankruptcy 
B)  Pricing practices 
C)  Individual bankruptcy 
D)  Accounting rules

Question 13

The Securities Exchange Act of 1934 Act:

Accepted Answer

A)  required companies to file annual reports called 10-Qs. 
B)  obligated companies to file quarterly reports called 8-Ks. 
C)  entailed companies to file reports known as 10-Ks that quickly update investors on significant events. 
D)  established the Securities and Exchange Commission (SE
C) . 
A)  required companies to file annual reports called 10-Qs. 
B)  obligated companies to file quarterly reports called 8-Ks. 
C)  entailed companies to file reports known as 10-Ks that quickly update investors on significant events. 
D)  established the Securities and Exchange Commission (SE
C) .

Question 14

When annual CEO salary and bonus are based on ____,the CEO can take actions to maximize short-term profits.

Accepted Answer

A)  market forces 
B)  stock awards 
C)  net income 
D)  stock options 
A)  market forces 
B)  stock awards 
C)  net income 
D)  stock options

Question 15

All of the following are frequently used types of stock awards EXCEPT:

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 16

A nominating committee:

Accepted Answer

A)  oversees auditing reports and assesses financial risks in the company's strategy. 
B)  reviews the performance of top executives and sets their compensation. 
C)  sets the director's pay. 
D)  identifies candidates for election to the board. 
A)  oversees auditing reports and assesses financial risks in the company's strategy. 
B)  reviews the performance of top executives and sets their compensation. 
C)  sets the director's pay. 
D)  identifies candidates for election to the board.

Question 17

The exercise of authority over members of a corporate community is called:

Accepted Answer

A)  corporate performance management. 
B)  corporate sustainability. 
C)  corporate statism. 
D)  corporate governance. 
A)  corporate performance management. 
B)  corporate sustainability. 
C)  corporate statism. 
D)  corporate governance.

Question 18

Directors who are employees of the company are called:

Accepted Answer

A)  independent directors. 
B)  inside directors. 
C)  lead directors. 
D)  outside directors. 
A)  independent directors. 
B)  inside directors. 
C)  lead directors. 
D)  outside directors.

Question 19

Which of the following statements about compensation of outside board members is true?

Accepted Answer

A)  They are compensated as full-time employees of the firm. 
B)  They are provided perquisites and pensions. 
C)  They are usually paid an annual retainer supplemented with company stock. 
D)  They are paid a monthly salary. 
A)  They are compensated as full-time employees of the firm. 
B)  They are provided perquisites and pensions. 
C)  They are usually paid an annual retainer supplemented with company stock. 
D)  They are paid a monthly salary.

Question 20

A holder of stock options can buy shares from the company at a specified future date,called the _____ date.

Accepted Answer

A)  withdrawal expiration 
B)  inception 
C)  vesting 
D)  annuitization 
A)  withdrawal expiration 
B)  inception 
C)  vesting 
D)  annuitization

Corporate charters specify the rights and responsibilities of all of the following EXCEPT:

A proxy card:

What is meant by grant price?

Most shareholders follow management's voting recommendations.

The Sarbanes-Oxley Act requires that accounting firm auditors of a company be rotated every three years.

Which state charters the largest number of corporations in the United States?

Explain what is meant by "corporate governance" and what it includes.

This is an independent director who chairs regular board meetings of other independent directors.

Which of the following is a major provision of the Sarbanes-Oxley Act?

Directors who are employees of the company are called independent directors.

The pay of top corporate officers is set by the board of directors.

What is the primary focus of the Sarbanes-Oxley Act of 2002?

The Securities Exchange Act of 1934 Act:

When annual CEO salary and bonus are based on ____,the CEO can take actions to maximize short-term profits.

All of the following are frequently used types of stock awards EXCEPT:

A nominating committee:

The exercise of authority over members of a corporate community is called:

Directors who are employees of the company are called:

Which of the following statements about compensation of outside board members is true?

A holder of stock options can buy shares from the company at a specified future date,called the _____ date.

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

Corporate charters specify the rights and responsibilities of all of the following EXCEPT:

A proxy card:

What is meant by grant price?

Most shareholders follow management's voting recommendations.

The Sarbanes-Oxley Act requires that accounting firm auditors of a company be rotated every three years.

Which state charters the largest number of corporations in the United States?

Explain what is meant by "corporate governance" and what it includes.

This is an independent director who chairs regular board meetings of other independent directors.

Which of the following is a major provision of the Sarbanes-Oxley Act?

Directors who are employees of the company are called independent directors.

The pay of top corporate officers is set by the board of directors.

What is the primary focus of the Sarbanes-Oxley Act of 2002?

The Securities Exchange Act of 1934 Act:

When annual CEO salary and bonus are based on ____,the CEO can take actions to maximize short-term profits.

All of the following are frequently used types of stock awards EXCEPT:

A nominating committee:

The exercise of authority over members of a corporate community is called:

Directors who are employees of the company are called:

Which of the following statements about compensation of outside board members is true?

A holder of stock options can buy shares from the company at a specified future date,called the _____ date.

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