1 Show Specific corporate governance practices for publicly traded U.S. corporations are mandated by the Uniform Corporate Governance Act. a. b. B 2 Which of the following is true regarding a corporation's board of directors? a. b. c. d. A 3 The boards of directors of companies that are listed on the NYSE or NASDAQ must be composed of a majority of independent directors. a. b.
A 4 According to the OECD Principles of Corporate Governance, an entity's corporate governance framework should: a. b. c. d. A 5 Companies with securities listed on the NYSE must have an internal audit function. a. b. A 6 The purpose of corporate governance is to: a. b. c. d. C 7 Under NYSE rules, a listed company's board of directors must have which of the following committees? a. b. c. d. B 8 Which of the following parties is responsible for directing employees to carry out business activities and managing their performance of those tasks? a.
b. c. d. D 9 According to the requirements of the Sarbanes-Oxley Act, which of the following parties is responsible for establishing procedures to handle complaints regarding irregularities in a publicly traded company's accounting methods, internal controls, or auditing matters? a. b.
c. d. A 10 The _______________ provide(s) guidance for policy makers in evaluating and improving the legal, regulatory, and institutional framework for corporate governance. a. b. c. d. D 11 Both the NYSE and NASDAQ have rules requiring listed companies to adopt and disclose a code of conduct for all employees and to report any waivers of the code for directors or officers. a. b. A 12 Specific corporate governance requirements for publicly traded U.S. corporations are considered optional and are left to the discretion of the corporation's board of directors. a. b. B 13 Good corporate governance practices: a. b. c. d. B 14 Which of the following parties is responsible for overseeing business operations by assessing the strategy and underlying purpose of management's decisions and actions? a. b. c. d. A 15 The term _______ refers to the oversight responsibilities of different parties for an organization's direction, operations, and performance. a. b. c. d. C 16 Effective corporate governance is the foundation of fraud risk management. a. b. A 17 The OECD Principles of Corporate Governance are required to be implemented by all corporations in the jurisdictions that have officially adopted them. a. b. B 18 Effective corporate governance practices are most important for which of the following organizations? a. b. c. d. C 19 Good corporate governance is based on a framework that: a. b. c. d. B 20 An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization and lays down the rules and procedures for organizational decision-making. a. b. A 21 Who is responsible for holding the board of directors accountable for proper governance and oversight? a. b. c. d. A 22 The Organisation for Economic Co-operation and Development has developed a detailed corporate governance policy that can be effectively applied to all organizations. a. b.
B 23 Which of the following is not one of the core principles of sound corporate governance? a. b. c. d. C 24 Under the Sarbanes-Oxley Act, members of the audit committee can be paid for consulting work done for the company, but only if the transaction is documented and conducted at arm's length. a. b. B 25 The Sarbanes-Oxley Act requires that each member of a company's audit committee be independent with respect to the company. Which of the following is not a violation of the independence requirements for audit committee members? a. b. c. d. B 26 Ownership of an equity share in a publicly traded company provides an investor with a right to certain information about the corporation and a right to influence the corporation through participation in general shareholder meetings and by voting. a. b. A 27 Which of the following is a responsibility of the audit committee under the Sarbanes-Oxley Act? a. b. c. d. D 28 The Treadway Commission made which of the following recommendations to reduce the probability of fraud in financial reports? a. b. c. d. A 29 The Treadway Commission was established with the purpose of defining the responsibility of the auditor in preventing and detecting fraud. a. b. A What are the responsibilities of the board of directors in a corporation quizlet?the responsibilities of the board include setting the company's strategic aims, providing the leadership to put them into effect, supervising the management of the business and reporting to shareholders on their stewardship. The board's action are subject to laws, regulations and the shareholders in general meeting'.
What are two functions of the board of directors for a company quizlet?1. Establishing, clarifying, and modifying purpose of agency. 2. Planning formal organization structure.
What makes a publicly held corporation different from a public corporation quizlet?A privately held (or closely held) corporation does not offer its stock for public sale and usually has few stockholders. A publicly held corporation offers its stock for public sale and can have thousands of stockholders. Public sale usually refers to issuance of stock and trading on an organized stock market.
Who selects the board of directors of a corporation quizlet?Shareholders are owners of a corporation who elect the board of directors and vote on fundamental changes in the corporation. Corporation codes regulate the formation, operation, and dissolution of corporations.
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