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Exam 5: Corporate Governance

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Question 31

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Define and discuss the responsibilities of the board of directors.

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The board of directors is a group of ind...

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Question 32

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The development of a separate corporate entity allowed organizations to raise funds from individual shareholders to enlarge their operations.

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Question 33

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The fiduciary responsibility of a manager is ultimately based on _________________.

_____ formally recognized the need to move the stakeholder model forward and to consider a triple bottom line instead of a single bottom line of profitability.

Managers only are accountable to their owners.

The "comply or else" methodology is a set of guidelines that require companies to abide by a set of operating standards or face stiff financial penalties.

In 1992,_______ led a committee on the new topical issue of corporate governance.

To be truly effective,a board of directors should create a climate of trust and candor and ensure individual accountability.

Efficiency is the main argument for merging the chief executive officer and the chairman of the board positions together.

The term outside director can be misleading because some outside members may have direct connections to the company.

The corporate ______ is responsible for monitoring the ethical business practices of an organization.

Enron maintained an audit committee consisting exclusively of nonexecutives,and the independent directors were not affiliated with organizations that benefited directly from Enron's operations.

A commitment to good corporate governance can make a company ___________________.

The ___________________ committee is an operating committee staffed by members of the board of directors plus independent or outside directors and is responsible for setting the compensation for the CEO and other senior executives.

Who is responsible for overseeing the financial reporting process of an organization?

The ____________________committee is responsible for overseeing the financial reporting process of an organization.

In contrast to the Cadbury report's focus on internal governance,the ______ included a code of corporate practices and conduct that went beyond the corporation itself.

A ______ is the process that directs and controls organizations.

The Cadbury report argued for a guideline of "comply or ____________."

The ______ is an operating committee staffed by members of the board of directors plus independent or outside directors,and they are responsible for setting the compensation for the CEO and other senior executives.