Governing the Corporation Globally Flashcard-11

Front

Which of the following is true regarding CEO duality? From an agency theory standpoint, if the board is to supervise agents such as the CEO, it seems imperative that the board be chaired by the same individual., In US firms with CEO duality, the trend now is to appoint a lead independent director, who chairs the sessions held by outside directors that do not involve company executives., A corporation led by two top leaders—a board chairperson and a CEO—will at least have unity of command and experience less top-level conflict., Firms in the UK are more likely to combine the two top jobs than are firms based on the US.

Back

In US firms with CEO duality, the trend now is to appoint a lead independent director, who chairs the sessions held by outside directors that do not involve company executives.

Front

Family ownership and control of large firms may:

Back

lead to destruction of value as a result of conflict.

Front

The service aspect of the role that boards of directors perform is to:

Back

advise the CEO.

Front

In light of industry-based considerations, governance practices need to:

Back

create a fit with the nature of the firm’s industry.

Front

The primary reason that agency problems persist is:

Back

information asymmetries.

Front

In corporate governance, most small shareholders:

Back

prefer to free ride and hope other shareholders monitor manager behavior.

Front

In recent years, which of the following is one of the factors that has led to the increased prevalence of shareholder capitalism?
Options:
The global concentration of best practices,
The impact of globalization,
The decline of capitalism,
The rise of CEO duality

Back

The impact of globalization.

Front

Managers from a controlling family who divert resources from the firm for family or personal use have engaged in: stewardship, expropriation, CEO duality, cross-listing.

Back

expropriation.

Front

In recent years, CEO duality has:

Back

become a less common practice among firms around the world.

Front

Approximately 80 percent of which of the following has diffused ownership?
Start-up firms, Family-owned firms, State-owned firms, Listed US firms

Back

Listed US firms