Question 1 The California Public Employees\" Retirement System (CalPERS), (a US pension ind manager], has had an impact on corporate governance internationally, due to which of the following? Which options are correct. A It requests its members not invest in shares. B It assists companies in which it invests to appoint directors. C It supports good corporate governance through investing in companies that practise it. D It informs the international business community that it has opinions on corporate governance practices in companies in which it invests. Question 2 Which of the following statements best describes characteristics likely to be found in agency relationships? A An agent will find it relatively easy to achieve the best interests of the principal in most agency relationships. B It is necessary to monitor an agent extensively, even where that agent voluntarily assumes the imposition of high bonding costs. C Agents who are highly bonded will be expected to try to maximise the returns of their principal and will be expected also to seek returns for themselves. D Agents will oen not provide sufficient sigalling to principals. It is principally this factor that results in principals nding it necessary to engage in and pay for monitoring. Question 3 Which of the following would not be an example or source of an agency cost? A audit fees B dividends C delegated authorities D information asymmetry