1. Which protected group has the largest representation on boards of directors?

A. women

B. African Americans

C. Latino(a)s

D. Asian Pacific Islanders

2. This provision of the DoddFrank Act required firms to hold shareholder votes on executive pay at least once every three years.

A. clawback

B. pay-for-performance

C. proxy access.

D. say-on-pay

3. What is another term for the shareholders of a firm?

A. investors

B. stockholders

C. owners

D. All of these choices are correct.

4. Which statement below is true about shareholders?

A. They are the legal owners of business corporations.

B. They own equal shares of company assets.

C. They are nonmarket stakeholders in the company.

D. They have no stake in how well the company performs.

5. Corporate boards are accurately characterized by which statement?

A. Corporate boards average between 9 and 11 members.

B. Less than half of the members are outside directors.

C. Board members are also called directors.

D. High-tech boards tend to be larger than average.

5. When activist shareholders seek to promote social, environmental, and good corporate governance, it is called

A. social investment.

B. socially responsible investment.

C. sustainable, responsible, and impact investment.

D. All of these choices are correct.

6. An argument that opposes the idea of high executive pay is

A. high salaries provide an incentive for innovation and risk taking.

B. not many individuals are capable of running today's large, complex organizations.

C. top athletes and entertainers make a lot of money, so top executives should, too.

D. high salaries divert resources that could be used to invest in the business.

7. An argument in support of high executive compensation is

A. inflated executive pay helps U.S. firms compete with foreign rivals.

B. the high pay causes resentment by talented middle managers.

C. high salaries provide an incentive for innovation and risk-taking.

D. there is currently a surplus of qualified executive candidates.

8. How are board members (directors) selected?

A. Shareholders elect the directors from a list of candidates.

B. The companys CEO appoints the directors.

C. The nominating committee elects the directors.

D. Investors with the greatest ownership in the company become directors.

9. In what way did the Wynn Resorts board of directors contribute to the ongoing problem of sexual misconduct in the workplace, as described in the case Corporate Governance and Executive Misconduct at Wynn Resorts?

A. The entire board continually defended Wynns high CEO compensation package.

B. Nine of the 10 members were outside directors, and Wynn was chairman of the board.

C. Many of the board members were friendly with Wynn and almost always voted in his favor.

D. The company was given an F grade in corporate governance by a proxy advisory firm.