Question 1

Clare, the CEO of Femica Inc., reports to the board of directors appointed by the shareholders of Femica.Based on shareholder suggestions, the board ties Clare's compensation to the performance of Femica.Due to this pressure, Clare begins devoting extra time to projects and undertakes other activities to ensure that she has job security and that she receives adequate compensation.This conflict between Clare's interests and the board's interests best illustrates a(n) _____.

Accepted Answer

A)   shareholder capitalism scenario
B)   inside director-outside director conflict
C)   fiduciary responsibility oversight
D)   principal-agent problemE) B) and C)
F) B) and D)

Question 2

Describe the role of inside directors as part of a company's board of directors.

Accepted Answer

Inside directors are generally part of t...

Question 3

How does the market for corporate control work?

Accepted Answer

If a company is poorly managed, its perf...

Question 4

Which of the following statements is true of shareholders in a public stock company?

Accepted Answer

A)   They directly supervise and coordinate the manufacture of products and delivery of services.
B)   They are granted a charter of incorporation by the state and legally own company stock.
C)   They are the centerpiece of corporate governance.
D)   They are appointed by a board of directors to oversee the company's management.E) None of the above
F) B) and C)

Question 5

Serena is the CEO of Pedalo Inc., a publicly traded company.The shareholders want Serena on the board of directors despite her recent appointment as the CEO.This decision of the shareholders is most likely because Serena:

Accepted Answer

A)   is a board member of a major client.
B)   is more likely than other board members to take care of the stockholders.
C)   is also the CEO of other companies.
D)   is likely to provide the board with valuable inside information.E) A) and D)
F) All of the above

Question 6

Creating economic value for shareholders while also creating social value is known as creating _____.

Accepted Answer

A)   a social market economy
B)   shareholder capitalism
C)   shared value
D)   stakeholder strategyE) A) and C)
F) None of the above

Exam 12: Corporate Governance and Business Ethics

Serena is the CEO of Pedalo Inc., a publicly traded company.The shareholders want Serena on the board of directors despite her recent appointment as the CEO.This decision of the shareholders is most likely because Serena:

Correct Answer
verified

Correct Answer
verified

Describe the role of inside directors as part of a company's board of directors.

Correct Answer
verified
Inside directors are generally part of t...
View Answer

Creating economic value for shareholders while also creating social value is known as creating _____.

Correct Answer
verified

Which of the following statements is true of shareholders in a public stock company?

Correct Answer
verified

How does the market for corporate control work?

Correct Answer
verified
If a company is poorly managed, its perf...
View Answer

Exam 12: Corporate Governance and Business Ethics

Serena is the CEO of Pedalo Inc., a publicly traded company.The shareholders want Serena on the board of directors despite her recent appointment as the CEO.This decision of the shareholders is most likely because Serena:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Describe the role of inside directors as part of a company's board of directors.

Correct AnswerverifiedInside directors are generally part of t...View AnswerShow Answer

Creating economic value for shareholders while also creating social value is known as creating _____.

Correct AnswerverifiedShow Answer

Which of the following statements is true of shareholders in a public stock company?

Correct AnswerverifiedShow Answer

How does the market for corporate control work?

Correct AnswerverifiedIf a company is poorly managed, its perf...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Inside directors are generally part of t...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
If a company is poorly managed, its perf...
View Answer