corporate governance is FALSE? The legal environment in which a corporation does business can have a big impact on its decisions. Type I agency problems are more important in widely held companies. (Tick here if you think that none of the other statements is FALSE.) Straight voting is better for minority shareholders than cumulative voting. In a civil law system, judges interpret the law but they cannot change

corporate governance is FALSE? The legal environment in which a corporation does business can have a big impact on its decisions. Type I agency problems are more important in widely held companies. (Tick here if you think that none of the other statements is FALSE.) Straight voting is better for minority shareholders than cumulative voting. In a civil law system, judges interpret the law but they cannot change

Business/Professional Ethics Directors/Executives/Acct

8th Edition

ISBN:9781337485913

Author:BROOKS

Publisher:BROOKS

Chapter2: Ethics & Governance Scandals

Section: Chapter Questions

Problem 2Q

See similar textbooks

Similar questions

Agency problems are said to be inherent in the corporate form of an organization. Why do you think this is the case?Do you think agency problems arise in a sole proprietorship or a partnership?What steps would you take to reduce agency problems in a so-called typical corporation?
A court does not have the power to remove a director when: Multiple Choice petitioned by shareholders. it finds that the director engaged in fraudulent conduct. it finds that the director intentionally inflicted harm on the corporation. it believes removal would help the corporation operate more globally responsibly.
Managers of corporations don’t always takeactions that are in the best interest of the corporation’s owners. What are some of those actions, andhow can corporations structure the managementcontract to help control them?
Which of the following is incorrect: Options: a) The Market for Corporate Control is an important external mechanism for encouraging corporate managers to act in their shareholders’ best interests b) GMU Dean Emeritus Henry G. Manne developed the theoretical concept of “Market for Corporate Control” c) The Market for Corporate Control was enacted into law by the Williams Act d) The Market for Corporate Control protects rationally ignorant shareholders e) None of the above
Kindly explain why large corporations have poor disclosures and accountability standards is a major problem of corporate governance?
Which of the following is a remedy for the Agency Problem in the U.S.? Shareholders have the right to elect the board of directors, which can serve as an effective check if the board remains independent of management. Shareholders have the right to overrule any managerial decisions. The U.S. government directly intervenes in company decisions to ensure shareholder interests are protected. The board of directors should always take management roles in the company.
Which of the following methods would be most likely to decrease the agency problems by helping motivate managers to act in the best interests of shareholders? 1. Increase the proportion of executive compensation that comes from stock options and reduce the proportion that is paid as cash salaries. 2. Eliminate a requirement that members of the board of directors have a substantial investment in the firm's stock. 3. Decrease the use of restrictive covenants in bond agreements. 4. Take actions that reduce the possibility of a hostile takeover. 5. Elect a board of directors that allows managers greater freedom of action.
Which of the following are correct descriptions of large corporations? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) check all that apply Managers no longer have the incentive to act in their own interests.unanswered The corporation survives even if managers are dismissed.unanswered Shareholders can sell their holdings without disrupting the business.unanswered Corporations, unlike sole proprietorships, do not pay tax; instead, shareholders are taxed on any dividends they receive.
Which of the following factors would weaken corporate governance? A.Ensuring that the rotation of directors is such that the average incumbency ensures that all diretors are appointed for a long period so as to enhance their familiarity with the company's policies and procedures B.Stipulating the maximum number of directorship a director can commit to C.Ensuring the CEO is not the chairman of the board of directors D.The appointment of independent directors to the audit committee
What are some factors that can increase the risk that a corporation does not have a corporate culture that supports ethical decision making? Please explain.
Independent directors are the agent and trustee of the company, their duties and responsibility towards the shareholder and other stake holders are akin to full time director , but there are few cases reported where the independent director had their personnel hidden interests in the company that jeopardize the general interest of the appointing independent director on board of company. Explain the responsibility of the independent directors toward shareholder and stakeholder. Explain your role in board meetings if you are appointed as an independent director of a company.
In a company, having one individual serve as both CEO and Chairman is a good idea. corporation can raise questions about the company's governance.T True FALSE.