1) The Shareholder Wealth Maximization Model (SWM): A) combines the interests and inputs of shareholders, creditors, management, employees, and society B) is being usurped by the Stakeholder Capitalism Model as those types of MNEs dominate their global industry segments. C) clearly places shareholders as the primary stakeholder. D) is the dominant form of corporate management in the European-Japanese governance system. 2) The study of how shareholders can motivate management to accept the prescriptions of the shareholder wealth maximization model is called: A) market efficiency B) the SWM model. C) agency theory D) the SCM model. 3) Which of the following is generally NOT considered to be a viable operational goal for a firm? A) maintaining a strong local currency B) maximization of after-tax income C) minimization of the firm's effective global tax burden D) correct positioning of the firm's income, cash flows and available funds as to country and currency 4) If share price rises from $12 to $15 per share, and pays a dividend of $1 per share, what was the rate of return to shareholders? A) 26.67% B)-13.33% C) 33.33% D) 16.67% 5) Dividend yield is the change in the share price of stock as traded in the public equity markets. A) True B) False 6) Which of the following broad topics is NOT identified as an area to be established as good corporate governance practice by the Organization for Economic Cooperation and Development (OECD)? A) protect the rights of shareholders B) disclosure and transparency C) the proper role of stakeholders in the governance of the firm D) All of the above should be a concern of good corporate governance. # 1360165 1 1 Pag e