E16.5

These questions relate to corporate governance. Multiple Choice-Corporate Governance E16.5 Required Formation and meaningful utilization of an audit committee of the board of directors is required of publicly traded companies that are subject to the rules of which of the following? Securities and Exchange Commission. Financial Accounting Standards Board. New York Stock Exchange. National Association of Securities Dealers. a 1 2. 3. 4. The SEC's antifraud rules prohibit trading on the basis of inside information of a business corpora- b. tion's stock by which of these? 1. Officers and directors. 2. Officers, directors, and beneficial holders of 10% of the corporation's stock 3. Anyone who bases his or her trading activities on inside information Officers. 4. Shareholders may ask or allow others to enter their vote at a shareholders meeting that they are unable to attend. The document furnished to shareholders to provide background information for their vote is a 1. registration statement. 2. proxy statement. 3. 10-K report. 4. prospectus. Information included in every company's proxy statements includes all the following except d. details of executive compensation packages. 1 statements of income and comprehensive income for the last three years. biographies of members of the board of directors related party transactions, if any. 3. 4