16.Under a(n) __________, a CEO is entitled to additional compensation upon resignation or dismissal?

Select one:

a. Executive care package

b. Nondisclosure agreement

c. Employee contract

d. Severance package

17.Which of the following is not a takeover defense mechanism?

Select one:

a. Increasing amount of debt

b. Staggered board

c. Shareholder's rights plan

d. Dual-class shares

18.Which of the following most frequently results in a financial restatement?

Select one:

a. Tax accounting errors

b. Improper expense recognition

c. Improper revenue recognition

d. Misclassification of items

19.In 2010, Risk Metrics/ISS introduced a new system of governance ratings known as Governance Risk Indicators (GRID). The selected inputs are based in which of the following four broad areas?

Select one:

a. Charter/bylaws, board structure, standards of business conduct, shareholder rights

b. Audit, board structure, standards of business conduct, shareholder rights

c. Audit, shareholder rights, board structure and compensation

d. Charter/bylaws, code of ethics, standard business conduct, shareholder rights

20.How can executives NOT achieve diversification to limit his or her financial exposure to the company he or she oversees?

Select one:

a. Pledging shares as collateral for loans to purchase other assets

b. Selling company shares

c. Hedge ownership portion with financial positions

d. Buying shares with company resources