6.Family management of a company usually only adds value when which of the following occurs?

Select one:

a. Descendant serves as Chairman

b. Founder serves as CEO

c. Descendant serves as CEO

d. None of the above

7.Which of the following is not a factor that a credit rating firm takes into account when does the assessment to a firm?

Select one:

a. All of the above

b. Audit quality

c. Anti-takeover protection

d. Bankruptcy

e. Compensation structure

8.According to the text, what does an external audit assess on publicly reported financial statements?

Select one:

a. Relevance and reliability

b. Validity and relevance

c. Validity and reliability

d. Investor risk and validity

9.In which of the following models of CEO succession does the company develop a forward-looking profile that lays out the skills and experiences of the next CEO based on the future needs of the company?

Select one:

a. External Candidate

b. President and/or CEO

c. Horse Race Model

d. Inside-Outside Model

10.Which of the following is a characteristic of a firm most likely to get acquired?

Select one:

a. Strong cash flows

b. All of the above

c. Low debt levels

d. Fundamentally weak performance

Answer rating: 100% (QA)

6 Option A is correct Descendant serves as Chairman Because Chairman guide ... View the full answer