41.What are the three factors that are critical in establishing credibility for ratings?

Select one:

a. The ratings provider must be able to demonstrate the predictive ability of its ratings

b. The ratings provider must be free from conflicts of interest that would compromise the judgement of the provider

c. Ratings must be objective, in that they are based on data that an outside observer would similarly evaluate

d. All of the above

42.Companies exhibit somewhat lower awareness of which of the following risk:

Select one:

a. None of the above

b. Risks associated with human capital

c. Financial Risk

d. Inherent Business model risks

43.Which form must a company file with the SEC when a financial restatement occurs?

Select one:

a. Form 10-K

b. Form 10-R

c. Form 8-K

d. Form 8-R

e. Form 8-Q

44.Which of the following is NOT a drawback of using benchmarking to determine proper executive compensation levels?

Select one:

a. Benchmarking determines pay without regard to value creation

b. Benchmarking can lead to vary different pay packages, depending on other companies in a peer group

c. Compensation levels may decline due to competition among CEOs and their Board of Directors

d. Compensation levels may become inflated as companies increase amount paid to match competitors

45.Most studies show that CEO turnover is _____ proportional to corporate operating and stock price performance

Select one:

a. Directly

b. Not

c. Partially

d. Inversely