1. The primary goal of financial management is to:

A multiple-choice question with one possible answer.(Required)

1. avoid financial distress
2. maximize current dividends per share of the existing stock
3. minimize operational costs and maximize firm efficiency
4. maintain steady growth in both sales and net earnings
5. maximize the current value per share of the existing stock

2.A conflict of interest between the stockholders and board of directors of a firm is referred to as the

agency cost of equity.

A question requiring a 'True/False' answer.(Required)

True/False

3. The costs (disadvantages) of being a corporation include:

A multiple-choice question with several possible answers.(Required)

1. limited fund raising ability
2. double taxation
3. potential agency cost
4. limited life

4. Information Asymmetry is often held as the cause of many agency problems.

A question requiring a 'True/False' answer.(Required)

True/False

5. Examples of Type I agency costs of equity include:

A multiple-choice question with several possible answers.(Required)

1. Empire-building tendency
2. Over-diversification
3. Shirking CEOs
4. Excessive managerial compensations
5. Corporate jets

6. Which of the following devices can be used to mitigate agency cost?

A multiple-choice question with several possible answers.(Required)

1. Market for corporate control
2. The presence of institutional investors
3. Board of directors
4. Bank monitoring
5. Stock option granted to CEOs

7. Compared to outside directors, inside director can more effectively monitor the managements.

A question requiring a 'True/False' answer.(Required)

True/False

8. Most of the Japanese firms choose the "Company with committees" board structure.

A question requiring a 'True/False' answer.(Required)

True/False

9. The traditional Japanese board structure is characterized as the two-tier monitoring system.

A question requiring a 'True/False' answer.(Required)

True/False

10. Traditionally, In Japan, insider directors dominate the board.

A question requiring a 'True/False' answer.(Required)

True/False

11. According to NYSE, for companies listed in NYSE, at least three quarters of the board members must be independent.

A question requiring a 'True/False' answer.(Required)

True/False

12. CEO duality refers to the situation when the CEO also holds the position of the CFO.

A question requiring a 'True/False' answer.(Required)

True/False

13.A chairman refers to the chairman of the shareholder meetings of a company.

A question requiring a 'True/False' answer.(Required)

True/False

14. Corporate Governance Code was released in 2010 in Japan

A question requiring a 'True/False' answer.(Required)

True/False

15. Due to Cross-shareholdings, Japanese CEOs tend to care more about shareholder value maximization.

A question requiring a 'True/False' answer.(Required)

True/False