Bu283 Corporate Governance
Questions
Klaus Schwab, is an advocate of: - answer Stakeholder Capitalism
ESG - answer Environmental, Social, Governance
Compared to maximizing shareholder wealth when directors maximize the interest of
stakeholders with fixed claims, a company will take on fewer risky projects - answer
True
The ranking of projects by residual claimants is ____ reverse the ranking by fixed
claimants - answer reverse, more important
the change in the Canadian corporate law from shareholder wealth maximization to
balancing stakeholder interest happened because of - answer Peoples (2004) and BCE
(2008)
Principal-agent problem - answer if an agent maximizes their self interest instead of the
interests of the principal
A fiduciary duty is a duty of - answerCare, loyalty, and good faith owed by an agent
(directs or managers) to a principal (shareholders)
Under Canadian common-law, up until 2004, the duty of the directors was to the
corporation where the corporation was understood to mean the _____. Since 2004, the
corporation has been interpreted as _____ - answershareholders, a good corporate
citizen (stakeholders)
Which of the following establishes the principle that the interests of the shareholders
should prevail over other stakeholder interests - answershareholder primacy, owners of
the company decide on how it is run
According to Adam Smith, we can expect our dinner from the butcher, the brewer and
the baker because of: - answerregard of their own interest
Under the stakeholder model of governance who chooses which social goals the
company focuses on - answerAll Stakeholders, shareholders, employees, retirees +
pensioners, creditors, consumers, communities, environment, government
How do members of the board of directors get their job - answershareholders elect them
Questions
Klaus Schwab, is an advocate of: - answer Stakeholder Capitalism
ESG - answer Environmental, Social, Governance
Compared to maximizing shareholder wealth when directors maximize the interest of
stakeholders with fixed claims, a company will take on fewer risky projects - answer
True
The ranking of projects by residual claimants is ____ reverse the ranking by fixed
claimants - answer reverse, more important
the change in the Canadian corporate law from shareholder wealth maximization to
balancing stakeholder interest happened because of - answer Peoples (2004) and BCE
(2008)
Principal-agent problem - answer if an agent maximizes their self interest instead of the
interests of the principal
A fiduciary duty is a duty of - answerCare, loyalty, and good faith owed by an agent
(directs or managers) to a principal (shareholders)
Under Canadian common-law, up until 2004, the duty of the directors was to the
corporation where the corporation was understood to mean the _____. Since 2004, the
corporation has been interpreted as _____ - answershareholders, a good corporate
citizen (stakeholders)
Which of the following establishes the principle that the interests of the shareholders
should prevail over other stakeholder interests - answershareholder primacy, owners of
the company decide on how it is run
According to Adam Smith, we can expect our dinner from the butcher, the brewer and
the baker because of: - answerregard of their own interest
Under the stakeholder model of governance who chooses which social goals the
company focuses on - answerAll Stakeholders, shareholders, employees, retirees +
pensioners, creditors, consumers, communities, environment, government
How do members of the board of directors get their job - answershareholders elect them
