1. Which of the following is considered a fundamental problem of CEO duality?

A. A CEO does not have enough time to oversee the board of directors.

B. A company cannot have two CEOs.

C. CEO duality concentrates too much power in the hands of one person.

D. CEO duality violates SOX.

2. Which of the following is responsible for communicating issues regarding board candidates with shareholders?

A. Risk management committee

B. Audit committee

C. Compensation committee

D. Nominating committee

3. What is the best way to incentivize a CEO to build long-term shareholder wealth?

A. Providing an annual cash bonus based on the companys bottom line

B. Backdating stock option grants

C. Requiring that stock options received must be held until the CEOs retirement

D. Including a generous retirement package in their employment contract

4. ____________ are a function within a company that is responsible for evaluating and improving the effectiveness of a companys management of risk, internal controls, and corporate governance.

A. External auditors

B. Internal auditors

C. Audit committees

D. Board of directors