26. The ultimate responsibility for maintaining an appropriate balance between management and the owners rests with:

marks:1

Board of directors.

Managers.

Shareholders.

Regulating entities.

27. The improvement of corporate governance and financial reporting by SOX should add the following benefits except:

marks:1

Improved investor confidence.

Increased firm value.

Decreased cost of capital.

Increased audit fees.

28. Public companies are required to comply with all of the following except:

marks:1

Government laws and regulations.

Listing standards of their respective exchange.

Best practices of leading competitors.

All of the above require compliance.

29. The key weakness of the public corporation is

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too many shareholders, which makes it difficult to make corporate decision.

relatively high corporate income tax rates.

conflicts of interest between managers and shareholders.

conflicts of interests between shareholders and bondholders.

30. The monitoring function is exercised by shareholders (and particularly institutional shareholders who are empowered to elect, and if warranted, remove directors)

marks:1

TRUE

FALSE