Question 1

At most companies the chairman of the board is the CEO,giving him/her a dual role.

Accepted Answer

A) True 
 B)False

Question 2

A government document that creates a corporation and defines its authority is called a:

Accepted Answer

A)  corporate charter. 
B)  state charter. 
C)  commerce charter. 
D)  director's charter. 
A)  corporate charter. 
B)  state charter. 
C)  commerce charter. 
D)  director's charter.

Question 3

Directors who are not employees of the company are:

Accepted Answer

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

Question 4

Compensation of these directors is determined by compensation committees on boards.

Accepted Answer

A)  Inside directors 
B)  Internal directors 
C)  Outside directors 
D)  International directors 
A)  Inside directors 
B)  Internal directors 
C)  Outside directors 
D)  International directors

Question 5

What is the main focus of the Dodd-Frank Act?

Accepted Answer

A)  Financial reform 
B)  Protected speech 
C)  Racial harassment 
D)  Tort reform 
A)  Financial reform 
B)  Protected speech 
C)  Racial harassment 
D)  Tort reform

Question 6

The right to purchase a specified number of shares of a company's stock for a specified price at a future date is called a:

Accepted Answer

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

Question 7

Companies must disclose their compensation plans and the annual compensation of the top five executive officers to shareholders.

Accepted Answer

A) True 
 B)False

Question 8

List three provisions that were set forth in the Sarbanes-Oxley Act.

Accepted Answer

Some of the main provisions of the Sarba

Question 9

What are two major duties that state incorporation laws impose on boards of directors?

Accepted Answer

State incorporation laws require boards

Question 10

Which of the following refers to a financing transaction in which one firm lends assets to another firm in exchange for cash with a simultaneous agreement to purchase the assets back?

Accepted Answer

A)  Forward rate agreement 
B)  Swap agreement 
C)  Repurchase agreement 
D)  Future-forward agreement 
A)  Forward rate agreement 
B)  Swap agreement 
C)  Repurchase agreement 
D)  Future-forward agreement

Question 11

Stockholders:

Accepted Answer

A)  cannot propose resolutions for votes. 
B)  are said to be owners of corporations. 
C)  own a fraction of the corporation as property. 
D)  are liable for the corporation's actions. 
A)  cannot propose resolutions for votes. 
B)  are said to be owners of corporations. 
C)  own a fraction of the corporation as property. 
D)  are liable for the corporation's actions.

Question 12

Which of the following statutes was established to reform financial regulation and prevent a recurrence of the 2007-2008 financial crisis?

Accepted Answer

A)  The Sarbanes-Oxley Act 
B)  The Uniform Securities Act 
C)  The International Emergency Economic Powers Act 
D)  The Dodd-Frank Act 
A)  The Sarbanes-Oxley Act 
B)  The Uniform Securities Act 
C)  The International Emergency Economic Powers Act 
D)  The Dodd-Frank Act

Question 13

This is the legal duty of a representative to manage property in the interest of the owner.

Accepted Answer

A)  Contributory liability 
B)  Fiduciary responsibility 
C)  Principal accountability 
D)  Ownership interest 
A)  Contributory liability 
B)  Fiduciary responsibility 
C)  Principal accountability 
D)  Ownership interest

Question 14

Describe the maximum penalty directors and managers are subject to for civil and criminal violations as specified in the Sarbanes-Oxley Act.

Accepted Answer

Civil violations can lead to f

Question 15

Explain the flow of authority granted by the powers of a charter of a corporation.

Accepted Answer

The legal line of power in state charter

Question 16

What are the major shortcomings of CEO compensation?

Accepted Answer

There are multiple shortcomings of CEO c

Question 17

Which of the following enacted new regulations on auditing,financial reporting,and legal compliance?

Accepted Answer

A)  The Bankruptcy Act 
B)  The Sherman Antitrust Act 
C)  The Sarbanes-Oxley Act 
D)  The International Emergency Economic Powers Act 
A)  The Bankruptcy Act 
B)  The Sherman Antitrust Act 
C)  The Sarbanes-Oxley Act 
D)  The International Emergency Economic Powers Act

Question 18

Backdating is granting options shortly before good news causes a share price rise.

Accepted Answer

A) True 
 B)False

Question 19

What is a proxy card?

Accepted Answer

A proxy card is a form stockho

Question 20

Which of the following statements about the requirements of proxy statements is true?

Accepted Answer

A)  The proposed resolution must be presented to the company for approval at least 100 days before the annual meeting. 
B)  Stockholders must own $3,000 or more shares for at least one year. 
C)  The proposal cannot exceed 1,000 words. 
D)  A shareholder may submit only one proposal for a particular shareholder meeting. 
A)  The proposed resolution must be presented to the company for approval at least 100 days before the annual meeting. 
B)  Stockholders must own $3,000 or more shares for at least one year. 
C)  The proposal cannot exceed 1,000 words. 
D)  A shareholder may submit only one proposal for a particular shareholder meeting.

At most companies the chairman of the board is the CEO,giving him/her a dual role.

A government document that creates a corporation and defines its authority is called a:

Directors who are not employees of the company are:

Compensation of these directors is determined by compensation committees on boards.

What is the main focus of the Dodd-Frank Act?

The right to purchase a specified number of shares of a company's stock for a specified price at a future date is called a:

Companies must disclose their compensation plans and the annual compensation of the top five executive officers to shareholders.

List three provisions that were set forth in the Sarbanes-Oxley Act.

What are two major duties that state incorporation laws impose on boards of directors?

Which of the following refers to a financing transaction in which one firm lends assets to another firm in exchange for cash with a simultaneous agreement to purchase the assets back?

Stockholders:

Which of the following statutes was established to reform financial regulation and prevent a recurrence of the 2007-2008 financial crisis?

This is the legal duty of a representative to manage property in the interest of the owner.

Describe the maximum penalty directors and managers are subject to for civil and criminal violations as specified in the Sarbanes-Oxley Act.

Explain the flow of authority granted by the powers of a charter of a corporation.

What are the major shortcomings of CEO compensation?

Which of the following enacted new regulations on auditing,financial reporting,and legal compliance?

Backdating is granting options shortly before good news causes a share price rise.

What is a proxy card?

Which of the following statements about the requirements of proxy statements is true?

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

At most companies the chairman of the board is the CEO,giving him/her a dual role.

A government document that creates a corporation and defines its authority is called a:

Directors who are not employees of the company are:

Compensation of these directors is determined by compensation committees on boards.

What is the main focus of the Dodd-Frank Act?

The right to purchase a specified number of shares of a company's stock for a specified price at a future date is called a:

Companies must disclose their compensation plans and the annual compensation of the top five executive officers to shareholders.

List three provisions that were set forth in the Sarbanes-Oxley Act.

What are two major duties that state incorporation laws impose on boards of directors?

Which of the following refers to a financing transaction in which one firm lends assets to another firm in exchange for cash with a simultaneous agreement to purchase the assets back?

Stockholders:

Which of the following statutes was established to reform financial regulation and prevent a recurrence of the 2007-2008 financial crisis?

This is the legal duty of a representative to manage property in the interest of the owner.

Describe the maximum penalty directors and managers are subject to for civil and criminal violations as specified in the Sarbanes-Oxley Act.

Explain the flow of authority granted by the powers of a charter of a corporation.

What are the major shortcomings of CEO compensation?

Which of the following enacted new regulations on auditing,financial reporting,and legal compliance?

Backdating is granting options shortly before good news causes a share price rise.

What is a proxy card?

Which of the following statements about the requirements of proxy statements is true?

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