Yue Zhu (Tony)
Section: AE1
Group 6
Introductory Questions
I-1) A publicly traded firm/company is a company that has issued securities through an initial
public offering (IPO) and traded on the open stock exchange market. In addition, the owners
of a publicly-traded company are often constituted by the individual and other shareholders
who own proportion of the company’s stock.
I-2) A board of directors in a publicly-traded firm/company is a group of individuals that are
selected to serve as the representatives of the shareholders. The primary role of those officials
is to construct company’s policies as well as to decide on major corporate issues. Also, the
board of directors is striving to protect the assets belonged to shareholders and ensure they
receive a profitable return on their investment.
I-3) The individuals in a board of directors in a publicly-traded company should be people
who have good professional background, particular industry experience and skills to deal
with different situations.
I-4) The role of an external auditor is to perform an audit of financial statements of an
