Question
1.Which of the following is not an important factor in determining shareholder interests? -investment horizon -objectives -activity level -extent of direct influence 2. Which of
1.Which of the following is not an important factor in determining shareholder interests?
-investment horizon
-objectives
-activity level
-extent of direct influence
2. Which of the following is not required disclosures in the United States?
-a company's blockholders
-a registered institutional investor's proxy voting policies
-a registered institutional investor's proxy votes for all shareholder ballot items
-a shareholder activist's proxy contest cost
3. Which of the following incurs the cost of shareholder actions such as proxy contests and proposals, thereby resulting in a free-rider problem?
-the board
-proxy advisory firms
-activist investors
-all shareholders
4. Which of the following is the largest sponsor of proxy resolutions?
-institutional investors
-pension funds
-individual investors
-hedge funds
5. Which of the following does not reflect a concern about the quality of voting advice provided by proxy advisory firms?
-two proxy advisory firms together have 97 percent market share
-the SEC views third-party agency disclosures as transparent and free from conflicts of interest
-propagation of best practices
-these firms also provide consulting services to companies they evaluate
6. Which of the following best describes the proxy voting process in the United States?
-complex
-is not viewed as a valuable exercise by investors
-used as the primary vehicle of corporate engagement
-used by retail investors more than institutional investors
7. Which of the following is a characteristic associated with a family-controlled corporation compared to a typical publicly-listed corporation?
-have less agency problems
-have higher earnings quality
-have better employee relations
-are more prepared for management succession
8. Which of the following is a characteristic associated with a venture-backed corporation compared to a typical publicly-listed corporation?
-pay less equity-based compensation
-have more independent directors
-offer high reward but also higher risk
have larger boards
9. Which of the following is a characteristic associated with a private equity-owned corporation compared to a typical publicly-listed corporation?
-have higher leverage
-adhere to listing exchange governance standards (e.g., NYSE)
-have larger boards
-have more independent directors
10. Which of the following is a characteristic associated with a nonprofit organization compared to a typical publicly-listed corporation?
-have less agency problems
-have larger boards
-have higher executive compensation
-have higher director compensation
11.Which of the following corporate governance theories rely on an efficient market for corporate information in order for shareholders to mitigate agency problems?
-Agency theory
-Managerial Hegemony
-Stewardship Theory
-Stakeholder Theory
12. In the United States, investor interests are protected by:
-the stock exchanges (e.g., NYSE, NASDAQ)
-Legislation (e.g., SOX, DFA)
-Accounting standard setters (e.g., FASB)
-Securities and Exchange Commission
13. Which corporate governance characteristic is NOT as prevalent in Germany compared to the United States?
Group of answer choices
two-tiered boards
co-determination
public shareholder voting rights
financial institution involvement
14.Which of the following is a feature that goes along with concentrated rather than dispersed shareholder ownership structures?
Group of answer choices
capital markets as a disciplining mechanism
less stock trading activity
management of analysts' expectations
shareholders being more litigious
15-Which of the following is not a common, permanent, standing committee in nonprofit organizations?
Group of answer choices
Nominating Committee
Executive Committee
Audit Committee
Compensation Committee
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