6.Which of the following is not likely to use non-financial performance measures?

Select one:

a. Companies in financial distress

b. Companies whose products are subject to short development cycles

c. Companies that are pursuing an "innovation" strategy

d. Companies in a highly regulated industry

7.Generally, who must approve equity-based compensation plans, such as stock options?

Select one:

a. The Compensation committee

b. The Board of Directors

c. Compensation Consultants

d. Shareholders

8.Why do boards sometimes prefer an external successor rather than an internal successor?

Select one:

a. The company lacks insiders with sufficient talent

b. External candidates are proven in terms of their ability to handle CEO-level responsibility

c. The company needs to change direction

d. The board is dissatisfied with recent performance

9.Qualitative factors considered when reviewing the audit committee includes:

Select one:

a. All of the above

b. CEO succession plan

c. Board performance analysis

d. Individual director performance reviews

10.Awarding stock options immediately before the release of unexpected positive news that is likely to drive up stock price is known as:

Select one:

a. Spring-loading

b. "Rope-a-doping"

c. Exercise Backdating

d. None of the above

e. Bullet-dodging

Answer rating: 100% (QA)

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