3) 4) True or False: In the classical principal-agent problem in a corporation, the shareholders are the "agents" and the managers (CEO for example) are the "principals"? True or False: Shareholders are not the owners of the corporation as they have no claim over the assets of the corporation? Some of the more important tasks executed by the board of directors of modern corporation include: a. Approving audit contracts b. Establishing management compensation C. Monitoring managers d. Disciplining poorly performing managers e. All of the above True or False: In a well-functioning system of corporate governance the roles of the CEO and Chairman of the Board should be performed by the same person - the CEO. It makes sense as the CEO is best placed to do both! Saves money. 6) 8) True or False: In the context of the modern corporation, Restatement is the revision and publication of one or more of a company's previous financial statements. What would the future value of $2,000 be after 5 years at 4% compound interest? a. $1,149 b. $1,364 c. $2,212 d. $2,433 e. $2.772 A company's 2019 net income was $250 million. If net income is expected to grow at 6.0% per year, how large will they be 3 years later, in 2022, in millions? a. $298 b. $376 c. $444 d. $515 e. $1,001