Attampts Average: / 10 4. Corparate govenances Methods for Influencing management's decislons Aa Aa Corporate govenanpe refers to policies and rules, regulations and laws, and activities that (1) Influence both management's decisions and its company's operations, and (2) affect the relationships between a buslness's stakeholders. These stakeholders indlude the company's executives and managers, shareholders, creditors, curres and former employees, competitors, and local and global communitles. These goveming fordes are both internal and extemal to the organization, and they can either align management's inberests with those of their shareholders (a positive outcome) or further entrench the fim's management (a not-so-positive outcome). An entrenched management is one that is be removed, all other things remaining equal. In simple terms, corporate govenance provisions can take two forms: and taking the form of to reward management for benefitting the fim's stakeholders, and the latter resulting in their damaging decisions or undertaking unacceptable activit with the former generally designed ikely to for making es. Internal and extemal corporate govemance provisions and activities can take many forms, induding the use of interlocking board members. Which of the following best describes this practice? O In this situation, a firm's CEO also serves as the chairperson of the board and personaly selects all of the members of the fim's board This practice requires that all members of a firm's board of directors be elected in each election. In this situation, a board member of one fim also serves as a member of another firm's board or on its management team. O O According to financial and management theory, which of the foilowing practices are reasonably expected to align t behaviors of a corporation's management with those of the firm's shareholders? Chick all that apply The ceo should sign the company's financial statements without reviewing them-provided that the cro aready signed them-since he or she knows that the crO's signature means the stabements are accurabe ar in good form The firm's capital structure should consist of 100% debt financing, because it reduces waste and the making risky investments by senice management risky investments by senior managsment . The company's charter should require that the majority of the board members be insiders m The board of directors should consist of twwer than ten members