36. The use of majority voting as opposed to cumulative voting substantially reduces the ability and influence of shareholders over who is actually elected to the board

marks:1

TRUE

FALSE

37. Investors should rely on which of the following to make rational, informed investment decisions?

marks:1

Accurate financial statements and reports.

Former employees.

Internet “blogs” and message boards.

Insider information

38. Shareholders own corporations and the ______________ is elected to make business decisions on behalf of shareholders.

marks:1

Chief executive officer.

Board of directors.

Chief compliance officer.

Legal counsel.

39. The CEO, as representative of investors, has direct authority and responsibility to govern business affairs and is accountable to investors for the company’s strategic performance

marks:1

TRUE

FALSE

40. Risk management assessment and internal controls play an important role in the success of private companies and NPOs

marks:1

TRUE

FALSE