QUESTION 5

1. Which one of the following statements is TRUE?

   	a.	An example of an agency relationship is when the board of directors hires a CEO to run a company.
   	b.	An example of an agency relationship is when the CEO nominates a slate of candidates to be on the board of directors.
   	c.	An example of an agency relationship is when a supervisor hires a forklift operator.
   	d.	An agency cost is the wage required to pay someone who is hired to perform a service.
   	e.	The supervisor-employee relation between a production line supervisor and a production line operator is an example of an agency relationship.

1 points

QUESTION 6

1. Which one of the following statements is TRUE?

   	a.	The more members of a board of directors, the better its function.
   	b.	A shareholder-friendly charter will make it harder for a company to be acquired.
   	c.	A company has an interlocking board of directors if the CEO also serves as the chairman of the board of directors.
   	d.	A company whose board members are elected in staggered terms is said to be an interlocking board of directors.
   	e.	Companies with interlocking boards of directors have directors that serve on both boards.