MAN 4701 - Ch. 3 - Corporate
Governance
How is corporate governance best defined? - answer The formal system of oversight,
accountability, and control for organizational
decisions and resources
As fiduciaries, members of a company's board of directors are fundamentally expected
to - answer exercise both due diligence and due loyalty
Which stakeholder is the primary focus of the shareholder model of corporate
governance? - answer investors
"Corporations are bound by the law, and by the rules of what you might call ordinary
decency. Beyond this however, they have no duty to pursue the collective goals of
society." This statement exemplifies which approach? - answer Shareholder model of
corporate governance
Corporate governance requires a system of _________ similar to the distribution of
power between the executive, legislative, and judiciary branches of the U.S.
government - answerchecks and balances
Who are the principals and agents of a corporation? - answerOwners and executives,
respectively
According to reports published in Business Week and other sources, the best boards of
directors - answerare generally more independent and more active than other boards
Effective shareholder activism includes which of the following? - answerusing
grassroots campaigns, such as letter writing
_______________ is the linchpin between risk and control and corporate governance -
answerauditing
Who is the client of the external auditor of a public company? - answerboard of directors
Which of the following is least likely to be a use of internal controls in an
organization? - answerMeasuring the effects of advertising on sales
Many boards of directors believe that the United States has a problem in that executive
pay _____________________________________. - answeris not in line with
performance
Governance
How is corporate governance best defined? - answer The formal system of oversight,
accountability, and control for organizational
decisions and resources
As fiduciaries, members of a company's board of directors are fundamentally expected
to - answer exercise both due diligence and due loyalty
Which stakeholder is the primary focus of the shareholder model of corporate
governance? - answer investors
"Corporations are bound by the law, and by the rules of what you might call ordinary
decency. Beyond this however, they have no duty to pursue the collective goals of
society." This statement exemplifies which approach? - answer Shareholder model of
corporate governance
Corporate governance requires a system of _________ similar to the distribution of
power between the executive, legislative, and judiciary branches of the U.S.
government - answerchecks and balances
Who are the principals and agents of a corporation? - answerOwners and executives,
respectively
According to reports published in Business Week and other sources, the best boards of
directors - answerare generally more independent and more active than other boards
Effective shareholder activism includes which of the following? - answerusing
grassroots campaigns, such as letter writing
_______________ is the linchpin between risk and control and corporate governance -
answerauditing
Who is the client of the external auditor of a public company? - answerboard of directors
Which of the following is least likely to be a use of internal controls in an
organization? - answerMeasuring the effects of advertising on sales
Many boards of directors believe that the United States has a problem in that executive
pay _____________________________________. - answeris not in line with
performance
