QUESTION 1

What action sets up future board members for success?

	a.	choosing members that will avoid entry shock
	b.	choosing employees that meet board diversity needs
	c.	choosing popular figures who will draw attention to the company
	d.	choosing well qualified members with diverse perspectives

QUESTION 2

When a board suffers from board bias, it can favor ______.

	a.	supporting unqualified employees
	b.	quick solutions to long-term problems
	c.	decisions that need more scrutiny
	d.	marketing campaigns that target their demographics

QUESTION 3

Which is one of the reasons for the gender gap in board membership?

	a.	Business schools discriminate against women seeking MBAs.
	b.	Women have only recently begun to serve as corporate executives.
	c.	Boards of directors tend to prefer the business experience of men.
	d.	Few businesses currently allow women in positions of leadership.

QUESTION 4

A benefit plan where employees are provided with ownership shares of a company is known as ______.

	a.	the peoples benefits plan
	b.	nationalized industry
	c.	employee stock ownership (ESOP)
	d.	cooperative

QUESTION 5

Which actions led to the passage of the Sarbanes-Oxley Act of 2002?

	a.	Savings and loan companies were operating unregulated.
	b.	Corporate boards were violating financial best practices.
	c.	Companies were going bankrupt at an alarming rate.
	d.	Banks couldnt guarantee they had their customers money.

QUESTION 6

What is the defining feature of public corporations?

	a.	They are owned by taxpayers.
	b.	Their shares are sold on public exchanges.
	c.	They have public financial records.
	d.	Their finances can be audited at any time.

QUESTION 7

When a board member works for a company that benefits from their membership on another companys board, they are engaged in a(n) ______.

	a.	conflict of interest
	b.	multi-level marketing initiative
	c.	mutual benefit agreement
	d.	insider trading scheme

QUESTION 8

When a CEO places their friends on their companys board, they can risk ______.

	a.	aversion to business risks
	b.	negligence
	c.	company morale
	d.	a lack of accountability

QUESTION 9

One of the best ways for a company to address the needs of stakeholders is to ______.

	a.	lower wages
	b.	increase resource allocation
	c.	create value for customers
	d.	rebrand ones image

QUESTION 10

Corporate governance structures rely on the transparency, accountability, and honesty of ______ in order to maintain ethical standards.

	a.	stakeholders
	b.	board members
	c.	customers
	d.	shareholders

QUESTION 11

Which is an example of a golden parachute?

	a.	A CEO receives a large performance bonus when the company does well.
	b.	An employee receives a new benefits package that includes a company car.
	c.	A CEO has a contract noting a six-figure payout if they are laid off.
	d.	An employee receives a bump in pay and a job title change when promoted.

QUESTION 12

Maximizing profits can blind managers to ______ costs.

	a.	long-term board satisfaction
	b.	long-term financial and reputational
	c.	short-term employee and resource
	d.	short-term shareholder satisfaction

QUESTION 13

Early businesses were almost entirely run by their owners who determined ______ singlehandedly.

	a.	the employee benefits
	b.	the companys best interests
	c.	which regulations to follow
	d.	employee compensation

QUESTION 14

Which regulatory body was created to monitor the auditing profession?

	a.	Department of the Treasury
	b.	Public Company Accounting Oversight Board
	c.	Securities and Exchange Committee
	d.	Consumer Protection Agency

QUESTION 15

The governing board of a company should include members who are racially, economically, and ideologically diverse as well those of diverse genders.

True

False

QUESTION 16

Why was the Public Company Accounting Oversight Board created?

	a.	implement federal auditing policies
	b.	regulate the previously self-regulating auditing profession
	c.	increase the ethical standards of corporations
	d.	examine auditing best practices

QUESTION 17

If you were a board member of a company and urged the company to become more environmentally conscious in its business practices, you would be operating under the ______ conception of social responsibility.

	a.	consequentialist
	b.	virtuous
	c.	broad
	d.	narrow

QUESTION 18

ESOPs provide employees with more benefits and also increase ______.

	a.	production timelines
	b.	company profits
	c.	ethical standards
	d.	staff longevity

QUESTION 19

If a CEO wants to make their company more environmentally-oriented and increase accountability for business practices, what action should be taken?

	a.	seek B Corp certification
	b.	provide employees with free Sierra Club membership
	c.	sponsor Earth Day events
	d.	make a donation to the World Wildlife Fund

QUESTION 20

Certified B Corps receive a tax break due to their certification.

True

False