11.Which of the following factors make effective governance hard to achieve?

Select one:

a. All of the above

b. Shareholders vary by size

c. Not all shareholders exhibit the same activity level

d. Shareholders have different investment horizons

12.Which of the following responsibilities of the audit committee is not required by law?

Select one:

a. Establishing proper procedure regarding to complaints about internal controls

b. Hiring and monitoring an external auditor

c. Building a whistleblower system

d. The assignment of risk management

13.What are potential issues that family ownership could cause?

Select one:

a. Management entrenchment problem by influencing the selection of management and directors.

b. The firm might engage in related party transactions which are against the interest of minority

c. Firms issue special dividends that favor founding families

d. All of the above

14.Which outgoing CEO behavior most closely relates with the CEO changing his or her mind about retirement and requests to stay longer?

Select one:

a. The Passive Agressor

b. The Power Blocker

c. The Active Advisor

d. The Capitulator

15.Annual bonus plans can result in:

Select one:

a. Decreased focus on goal achievement

b. Increase focus on long-term performance

c. Increase focus on short-term goals

d. A balanced focus on both short and long term goals