Question 3

All of the following are properties of the HH Index except:

Increases with the number of firms in the industry

Weights larger firms more heavily than smaller firms

Cannot be used if there is incomplete information

None the above

Question 4

Stock options are one method which may be used to align management and shareholder's interests.

True

False

Question 5

Which of the following agencies that have successfully blocked mergers on antitrust (antimonopoly) grounds

US Justice Department

Federal trade commission (FTC)

European Commission

All the above

Question 6

When challenged, which is not common, courts have found golden parachute agreements to be an illegal giveaway of shareholder wealth.

True

False

Question 7

The European Union has enacted its own version of the Sarbanes-Oxley Act. It is called:

European Accounting Regulatory Mandate

8th Company Directive

European Commission Accounting Regulatory Reform Law

None of the above

Question 8

Foreign companies which have what percent of the trading volume on U.S. exchanges have to comply with SOX:

More than 5%

More than 10%

Less than 50%

More than 50%