Which one of the following statements is TRUE?

Group of answer choices

One tool of corporate governance is choosing a good investment banker.

Shareholders want to prevent takeovers because they don't want the company purchased out from under them.

A targeted share repurchase can be used to prevent a hostile takeover.

Anti-takeover charter provisions are good for shareholders because they prevent a raider from stealing the company for a below-market price.

A targeted share repurchase can be used to increase the stock price if the company is undervalued.

Which one of the following corporate board characteristics usually improves corporate governance?

Group of answer choices

The board has a majority of outsiders who have experience and aren't too busy.

CEO is the chairman of the board.

The board is as large as is possible.

Board members are paid at a rate higher than their peers and their payment is mostly cash.

The board has a majority of insiders from company management on it who bring first-hand knowledge of how the company operates.