1. Corporate governance is better when Directors are also employees of the company so they know the business very well.

a. True b. False

2. One tool of corporate governance is how the company's charter affects the likelihood of a takeover.

a. True b. False

3. An inside director is a board member who also holds a managerial position in the company.

a. True b. False

4. The cost of debt is equal to one minus the tax rate multiplied by the yield to maturity on all outstanding debt.

a. True b. False