Quiz
Quiz
4. Investors should rely on which of the following to make rational, informed investment
decisions?
- Accurate financial statements and reports.
6. Public companies are required to comply with all of the following except:
- Best practices of leading competitors.
10. The elements of a multiple bottom line (MBL) approach are economic, social, ethical,
and:
- Environmental.
12. The improvement of corporate governance and financial reporting by SOX should add the
following benefits except:
- Increased audit fees.
13. The improvement of corporate governance and financial reporting by SOX should add the
following benefits:
- Improved investor confidence.
- Decreased cost of capital.
- Increased firm value.
17. Which of the following are considered to be the second-tier stakeholders in the company?
- Lenders and creditors.
20. Which of the following is not crucial to the integrity and efficiency of capital markets and
economic growth?
- High stock prices.
21. Which of the following is crucial to the integrity and efficiency of capital markets and
economic growth?
- Investor confidence.
- Sustainability and financial health of public companies.
- Public trust.
12. Jacobs decide to employ a new manager who would be interested in this decision?
- Employees, managers and owner
13. Jacobs decide to increase their prices, what stakeholders have an influence on this
decision?
- Customers, managers
18. Possible conflicts between the government and an shareholders could include....
- one side wanting more tax while the other side wanting to reduce costs.
20. True or False: a consequence of a business not listening to their stakeholders is employees
could go on strike.
- True
27. What influence would the local community have on the business?
- They may petition the business.
4. Corporate governance can involve merging the roles of ______ and the ______.
- CEO / Chairman of the Board
8. Successful business leaders not only realize the importance of giving back to society, but
they also consider the social and environmental responsibilities of their business with the
ultimate goal of sustainable global development. These statements refers to
- Elements of corporate governance
9. Traditionally, the board of directors is responsible for representing the interests of:
- Stockholders
14. Which is NOT TRUE about the needs for corporate governance?
- To analyze of an organization's operations and maintenance of systems of internal controls
can help detect and prevent various forms of fraud and other accounting irregularities.