36.The Audit Committee is not responsible for which of the following?

Select one:

a. Setting executive compensation

b. Selecting the external auditor

c. Internal controls

d. Overseeing management's use of accounting

37.When management of a firm is transferred from the founder/CEO to his or her descendant, the stock price of the firm generally:

Select one:

a. Decreases

b. Is unpredictable

c. Does not change

d. Increased

38.Which of the following is not a risk oversight responsibility of the board?

Select one:

a. Evaluating the company's strategy and business model

b. Have a risk committee on the board

c. Determining that management has effective internal controls in place

d. Ensuring the company is committed to operate at an appropriate risk level

e. Determining the risk profile of a company

39.Family control of a company is achieved through all of the following mechanisms except:

Select one:

a. Multiple share classes

b. Governmental intervention

c. Pyramids

d. Cross-bridges

40.Families capable of expropriating wealth from the firm in the following ways except:

Select one:

a. Repurchased stock

b. Excessive compensation

c. Related party transactions

d. Special dividends