11.Which of the following statements is true regarding CEO turnover?

Select one:

a. CEO turnover was 14.3 percent on a worldwide basis

b. Companies with strong corporate governance systems are more likely to terminate an underperforming CEO

c. Companies whose shareholders base is concentrated among a handful of institutional investors are more likely to terminate an underperforming CEO

d. CEO turnover is inversely proportional to corporate operating and stock price performance

e. All of the above

12.What are potential dangers associated with large executive equity ownership positions?

Select one:

a. None of the above

b. Weak performance and strengthened oversight

c. Management entrenchment and weakened oversight

d. Fewer board meetings

e. Lurking executives and underpaid employees

13.What are NOT examples of undesirable behaviors encouraged to managers through equity ownership?

Select one:

a. Manipulating timing of option grants

b. Manipulating accounting results to inflate stock price

c. Using inside information to provide more accurate earnings guidelines to analysts

d. Using inside information to gain advantages in selling or buying equity holdings

14.Researchers generally define a block-holder as any shareholder who has at least between

Select one:

a. 8-15 percent stake

b. 7-10 percent stake

c. 1-5 percent stake

d. 10-12 percent stake

15.Which audit opinion expresses that the financial statement has no known material misstatements?

Select one:

a. Qualified opinion

b. Disclaimer of opinion

c. Unqualified opinion

d. Going concern opinion