1.Which of the following is not one of the responsibilities of the audit committee?

Select one:

a. Oversee financial reporting disclosure

b. The creation and implementation of accounting principles

c. Monitoring risk

d. Hiring the external auditor

2.Which of the following is the major problem with long-term incentive plans?

Select one:

a. Executives are motivated to invest more in R and D

b. None of the above

c. Executives are motivated to take more risks

d. Stock prices are more volatile

3.Which of the following is not one of the risk oversight responsibilities of the Board?

Select one:

a. Evaluating the company's strategy and business model given the firm's risk tolerance

b. Determining if management has developed the necessary internal controls to ensure risk management remains effective

c. Evaluating the risks associated with new projects of the company.

d. Determining the risk profile of the company

4.The ratio of the firms market assets to total assets is:

Select one:

a. Family ownership stake

b. Return on assets

c. Tobin's q

d. Non family block-holder ownership

5.In mergers and acquisitions, who normally comes out with more value?

Select one:

a. The target company

b. Both companies receive substantial benefit

c. The acquiring company

d. Neither company

Answer rating: 100% (QA)

Answer 1 Which of the following is not one of the responsibil... View the full answer