Corporate Governance 1

Question 1

Corporate governance is the process and __________ used to enhance business prosperity

Accepted Answer

structure

Question 2

Which one of these is NOT a key concept of corporate governance?

Accepted Answer

Confidentiality

Question 3

The first tier of stakeholder hierarchy is investors or shareholders who own the company

Accepted Answer

True

Question 4

The board of directors is responsible for hiring the appropriate management to operate the daily company operations

Accepted Answer

True

Question 5

Companies that are poor governed usually outperform well governed companies and will be able to attract investors

Accepted Answer

False

Question 6

Who is not Corporate Governance Parties?

Accepted Answer

Employees

Question 7

The central issue of corporate governance is...

Accepted Answer

how to protect creditors from managers and controlling shareholders, how to alleviate conflicts of interest between managers and shareholders, how to solve conflicts of interest between shareholders and bondholders, how to protect outside investors from the controlling insiders

Question 8

The market price of a share of common stock is determined by

Accepted Answer

individuals buying and selling the stock

Question 9

Advantages of better corporate governance are

Accepted Answer

lower costs of capital

Question 10

What indicates bad corporate governance?

Accepted Answer

passive and disperse shareholders

Corporate Governance 1

Questions 10

Corporate Governance 1

Questions 10