Questions:
Question 1
_______________ is a relationship among stakeholders that is used to determine and control the direction and performance of organizations.??
Corporate governance
Shareholder value
Agency Relationship
Managerial opportunism
Question 2
_______________ is the seeking of self-interest with guile.??
Corporate governance
Shareholder value
Agency Relationship
Managerial opportunism
Question 3
An agency relationship exists when one party delegates:??
Decision making responsibility to a second partyFinancial responsibility to employeesStrategy implementation actions to functional managersOwnership of a company to a second party.
Question 4
The sum of incentive costs, monitoring costs, enforcement costs, and individual financial losses incurred by principals, because governance mechanisms cannot guarantee total compliance by the agent is known as:??
Governance costs
Agency costs
Due diligence costs
Operating costs
Question 5
_____________ have a fiduciary duty to shareholder to monitor management.??
Government auditorsThe firm's top managersThe board of directors
None of the above
Question 6
A ___________ provides for payment of up to three years' salary to a CEO if his/her firm is taken over.??
golden parachute
white knight
poison pill
silver handshake
Question 7
Preferred stock in the merged firm offered to shareholders at a highly attractive rate of exchange is known as:??
golden parachute
white knight
poison pill
silver handshake
Question 8
Generally, a board member who provides independent counsel to the firm and may hold top-level managerial position in another company is classified as a (an) ____ director.??
lead independent
inside
related
outside
Question 9
Japanese keiretsu are:??
Management structures related to total quality management systemsCompany unions which are a type of governance systemConsortia of Japanese banksA system of cross-shareholding among firms.
Question 10
Institutional owners are??
shareholders in the large institutional firms listed on the New York Stock Exchangebanks and other lending institutions that have provided major financing to the firmlarge block shareholders such as mutual funds and pension fundsprevented by the Sarbanes-Oxley Act from owning more than 50% of the stock of any one firm.