31.Under compensation packages, if the executive has acted unethically or violated a non-compete clause or manipulated the financial statements, the Board will reclaim compensation that should not have been awarded previously. This is also known as:

Select one:

a. Stock ownership guidelines

b. Contractual agreements

c. Clawbacks and deferred payments

d. None of the above

32.Which of the following is not a reason why the ratio of CEO pay to average employee pay is not a reputable figure?

Select one:

a. Difficult to compare ratio across companies

b. Difficult to accurately calculate

c. Difficult to explain

d. Difficult to interpret

33.Which background is most prominent among CEOs?

Select one:

a. Finance

b. Consulting

c. Operation

d. Law

34.Which of the following about "hedging" is false?

Select one:

a. Hedging unwinds equity incentives that the board presumably intended to align the interests of management with those of shareholders

b. As with hedging transactions, pledging might be more tax efficient than an outright sale

c. Allowing an executive to hedge is costly to the company

d. Most companies allow executives to hedge

35.Examples of how a firms assets might be more valuable to an acquirer than the company as a free-standing entity include:

Select one:

a. All of the above

b. Financial synergies

c. Change in ownership

d. Diversification

Answer rating: 100% (QA)

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