Identify the wrong statement about Shareholders and their impact to corporate objectives: a. The voting power of the shareholders is equal to the percentage of shares they own b. None of these c. Shareholders receive the appreciation of the company's value d. The board of directors' makeup is voted by shareholders of the compdny

Identify the wrong statement about Shareholders and their impact to corporate objectives: a. The voting power of the shareholders is equal to the percentage of shares they own b. None of these c. Shareholders receive the appreciation of the company's value d. The board of directors' makeup is voted by shareholders of the compdny

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Which of the following actions would the Board of Directors have to have a shareholder vote in order to enact? A. Hiring a new CEO B. Approving CEO Compensation over $1M C. Selling the company to a holding company D. Purchasing a company as a subsidiary
Which of the following is true? 1. Shareholder activism requires the investors to exercise their voting rights. 2. Agency problem arises if the management does not hold the majority share in the firm (i.e., more than 50%). 3. Stock options and performance plans are examples of external market forces. 4. Agency costs are borne by all the stakeholders, including the shareholders.
Why the corporate social responsibility activities have negative implication on the accounting valuation of a company? O a. CSR activities are done at the cost of the company. O b. CSR activities are done for the benefit of the community. O C. CSR activities are done for the benefit of the company. O d. CSR activities are done at the cost of the community. 8:44 AM
Which of the following are in keeping with Corporate Governance? a Shareholders own the company B. Board of Directors own the company C. CEO and top management own the company D. Answers a and b E. Answers a and c
Corporate management and the Board of Directors fulfil a vital role to ensure good corporate governance within a company. Which of the reasons, listed below, has been a major contributing factor to corporate governance scandals? Question 16 options: Changes to government regulations regarding public reporting and disclosure Shareholders have dumped the company's stock Unclear separation of ownership and management Maximizing current share holder value tends to focus on the value near term
Two important issues in corporate governance are (1) the rules that cover the board's ability to fire the CEO and (2) the rules that cover the CEO's ability to remove members of the board. True or False
With respect to the shareholder/manager relationship, which of the following statements is FALSE? a. The managerial salary package should include an incentive component b. Executive stock options do not have expiration dates and are held in perpetuity c. Executive stock options tend to be issued out-of-money d. Performance shares can be used to align manager/shareholder interests
Many codes of corporate governance require companies to report the distribution of major shareholding and any board of directors’ interests. Discuss the importance of such reporting.
Which of the following are in keeping with Corporate Governance? a Shareholders run the company on a short term basis B Board of Directors run the company on a short term basis C. CEO and top management run the company on a short term basis D. Answers a and b E. Answers a and c
1. Many businesses are set up as limited companies. These are owned by shareholders and run by the board of directors. Which of the following are disadvantages of limited company status? a) The impression of a soundly based business organisation (though incorporation does not guarantee reliability or respectability) b) Easier to raise capital c) Must comply with legal and regulatory requirements d) Shareholders’ liability for any losses is limited to the amount of their investment in the company 1.1 A loan repayment to a bank would be recorded in the nominal ledger as: a) Dr Bank Cr Capital b) Dr Loan Cr Bank c) Dr Loan Cr Bank d) Dr Bank Cr Reserves
which of the following is a control right? shareholders right to elect the members of the board of directors and to receive the remaining liquidated value of assets shareholders rights to receive the remaining liquidated value of assets shareholders right to elect the members of the board of directors bondholders right to receive interest payments
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

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