BUSA 2106 CHAPTER 3 QUIZ QUESTIONS AND ANSWERS
"Corporate governance" is defined as ____________. - CORRECT ANSWER✅✅The formal system of
oversight of, accountability for, and control over organizational decisions and resources
A shareholder resolution is _____________. - CORRECT ANSWER✅✅a nonbinding, yet important
statement about shareholder concerns
As fiduciaries, members of a company's Board of Directors are expected to ____________. - CORRECT
ANSWER✅✅use both due care and loyalty in acting on behalf of the best interests of the organization
Which of the following is one of the responsibilities that will affect boards of directors in the future? -
CORRECT ANSWER✅✅The selection of Board members will become more formalized, with less
emphasis on personal networks, who-knows-who, and word of mouth.
Which of the following best describes the stakeholder model of corporate governance? - CORRECT
ANSWER✅✅The managers have responsibilities to many stakeholders including employees, suppliers,
government agencies, communities, and groups with which it interacts.
Who appoints top executive officers and is responsible for overseeing their performance? - CORRECT
ANSWER✅✅Board of Directors
Which stakeholder is the primary focus of the shareholder model of corporate governance? - CORRECT
ANSWER✅✅investors
Which of these U.S. government agencies oversees the operations and protection of the securities
markets and investors? - CORRECT ANSWER✅✅Securities and Exchange Commission (SEC)
_______________ relates to a system of checks and balances that limit employees' and managers'
opportunities to depart from policies and codes of conduct. - CORRECT ANSWER✅✅Oversight
The Sarbanes-Oxley Act required which of these? - CORRECT ANSWER✅✅that the CEOs and CFOs to
certify their quarterly and annual reports to accurately reflect performance
"Corporate governance" is defined as ____________. - CORRECT ANSWER✅✅The formal system of
oversight of, accountability for, and control over organizational decisions and resources
A shareholder resolution is _____________. - CORRECT ANSWER✅✅a nonbinding, yet important
statement about shareholder concerns
As fiduciaries, members of a company's Board of Directors are expected to ____________. - CORRECT
ANSWER✅✅use both due care and loyalty in acting on behalf of the best interests of the organization
Which of the following is one of the responsibilities that will affect boards of directors in the future? -
CORRECT ANSWER✅✅The selection of Board members will become more formalized, with less
emphasis on personal networks, who-knows-who, and word of mouth.
Which of the following best describes the stakeholder model of corporate governance? - CORRECT
ANSWER✅✅The managers have responsibilities to many stakeholders including employees, suppliers,
government agencies, communities, and groups with which it interacts.
Who appoints top executive officers and is responsible for overseeing their performance? - CORRECT
ANSWER✅✅Board of Directors
Which stakeholder is the primary focus of the shareholder model of corporate governance? - CORRECT
ANSWER✅✅investors
Which of these U.S. government agencies oversees the operations and protection of the securities
markets and investors? - CORRECT ANSWER✅✅Securities and Exchange Commission (SEC)
_______________ relates to a system of checks and balances that limit employees' and managers'
opportunities to depart from policies and codes of conduct. - CORRECT ANSWER✅✅Oversight
The Sarbanes-Oxley Act required which of these? - CORRECT ANSWER✅✅that the CEOs and CFOs to
certify their quarterly and annual reports to accurately reflect performance
