21.Despite actual practice, who does the text argue is likely the best to handle risk management?

Select one:

a. The entire board

b. The audit committee

c. The risk committee

d. The governance committee

22.Some evidence suggests that family-controlled firms:

Select one:

a. Are less risk adverse

b. Uniformly perform better than non-family controlled firms

c. Exhibit fewer agency problems

d. Are not common among S&P 500 companies

23.Most newly appointed CEOs are:

Select one:

a. External executives

b. Retired financiers

c. Internal executives

d. All of the above

24.The free-rider problem occurs when:

Select one:

a. The directors' work to pursue governance changes while the shareholders enjoy the benefits of the changes

b. The passive investors abstain from voting on shareholder proxy proposals

c. Individual shareholders experience the benefit of activist institutional shareholders

d. One institutional investor bears the cost of activist shareholder actions while the benefits are enjoyed by all the shareholders

25.Which issue is not related to executive hedging?

Select one:

a. Hedging unwinds equity incentives that the board presumably intended to align the interest of management with those shareholders

b. Easy manipulation of accounts

c. It is costly to the company

d. Explaining to shareholders is difficult