26.Which of the following identifies the objectives of a business and is the first step in developing corporate strategy?

Select one:

a. Risk statement

b. Business model

c. Economic plan

d. Business plan

e. Mission statement

27.Which of the following statements concerning external block-holder is incorrect?

Select one:

a. CEO compensation is lower among firms in which an external shareholder owns at least 5 percent of the company

b. The presence of external block-holders can improve firm performance

c. The external block-holders might be better monitors of managerial performance and compensation

d. Companies with an external block-holder on the board of directors are more likely to be the target of a successful acquisition

28.The following agency problems occur in different scenarios. All are correct except:

Select one:

a. Type III: Family firms with a family CEO but no control-enhancing mechanisms. These do not have either agency problem.

b. Type II: Family firms with control enhancing mechanisms but no family CEO. These firms might have no agency problems

c. Type IV: Non-family firms that may have Agency Problem I but not Agency Problem II

d. Type I: Family firms with control-enhancing mechanisms (dual-share classes, pyramids, cross-holdings, or voting agreements)

29.Corporate governance index:

Select one:

a. Aggregates several input variables into several different metrics

b. Aggregates one input variable into several different matrices

c. Aggregates several input variables into a single metric

d. None of the above

30.Under which act are companies required to develop, implement and disclose a clawback policy?

Select one:

a. The Millennium Act

b. Sarbanes-Oxley Act

c. Securities and Exchange Act of 1933

d. Dodd-Frank Financial Reporting Reform Act

Answer rating: 100% (QA)

26 Option E is correct Mission statement Mission is first st... View the full answer