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61.
Outside directors are more likely to watch out for the interests of shareholders of their firm
because
62.
What is a unicorn?
63.
De Bruyne Inc., a publicly traded company, has ten members on its board. Of the ten
members, six members are employees of the company and includes the CEO, who also
chairs the board. The board has been failing in its responsibilities toward the shareholders
who now want a new board. Assuming that the total number of board members remains
constant, how many outside directors should the shareholders appoint to De Bruyne's
board to achieve board independence?
64.
Which of the following proves that GE's board of directors is significantly independent?
65.
Which of the following best defines duality in a board of directors?
66.
GE's board has only one inside director, Jeffrey Immelt, GE's CEO, who also acts as
chairman of the board. This is known as duality. Which of the following statements
represents the best argument for this duality in GE?
67.
Which of the following facts proves that GE's board is fairly diverse compared to other
Fortune 500 companies?
68.
Which of the following best explains why a board of directors may grant stock options as
part of a compensation package?
69.
A compensatory governance mechanism that allows executives to buy a company's stock
at a predetermined price sometime in the future is called a(n)
70.
Which of the following is a major issue at the forefront of CEO compensation in recent
years?
71.
John Hammergren, the CEO of McKesson, received an annual compensation of $50
million. The compensation was closely tied to the performance of McKesson's stock,
which appreciated considerably during his tenure. This situation best exemplifies
72.
Which of the following is an important external corporate-governance mechanism?
73.
Which of the following is an important internal corporate-governance mechanism?
74.
Which of the following scenarios best exemplifies a leveraged buyout of a
telecommunications firm, Telbok Inc.?
75.
Kaito is the CEO of Henson and Fukui Consulting Inc. Kaito's efforts to persuade the board
of directors to pursue a new business strategy fail. He borrows money from different
sources and purchases all the outstanding shares of Henson and Fukui Consulting. What
does this scenario best exemplify?
76.
What are poison pills?
77.
Poison pills have become rare because
78.
Which of the following do
not
serve as additional external-governance mechanisms?
79.
All public companies listed on the U.S. stock exchanges must file a number of financial
statements with the
80.
The Securities and Exchange Commission (SEC) makes all financial reports filed by public
companies available electronically via the _____ database.
81.
Which of the following is regarded as the most internal of control mechanisms?
82.
Which of the following is true of business ethics?
83.
What helps notions such as fairness, honesty, and reciprocity to be codified into law?
84.
Ethics is
85.
A bank, YPC, offers a customer a personal loan. In which of the following circumstances
will this decision most likely be considered unethical?
86.
Which of the following is true of the codes of conduct of an organization?
87.
Which of the following best supports the fact that Goldman Sachs was unethical in the
Abacus deal?
