Corporate Governance 2

According to our presentation, what can poor corporate governance lead to?

• Flailing Economy

• Firings

• Financial difficulties

• New Boardmembers

What is the biggest difference between a Board of Directors and Audit Committee?

• Number of people

• Pay scale

• Age requirements

• One has independent or outside directors

The purpose of a Corporate Governance Committee is to monitor the ___________________ of the corporation and oversee ____________ with the company's internal code of ethics.

• financial statements / rules

• ethical performance / compliance

• office rules / interviews

• external communication / misconduct

A stakeholder is someone who ________________.

• wants to see the company's bottom line.

• answers to the board of directors.

• has a vested interest in a company's success.

• is hired to do a specific job.

Corporate governance can involve merging the roles of ______ and the ______.

• CFO / President

• COO / Vice President

• President / Vice President

• CEO / Chairman of the Board

One advantage of merging positions in a corporate governance is:

• It saves on salaries for the company

• Board had the luxury of hearing from someone who is in touch with the inner workings of the organization.

• Employees have less conflict in the departments due to the consolidation of power.

• All of the above

Effective corporate governance included all of the following EXCEPT:

• Accoutability

• Fairness

• Effectiveness

• Residual Income

Having a checklist and mechanisms in place is a sure-fire way to ensure good corporate governance.

• True

• False

A fiduciary responsibility certification is required to handle money for companies and/or private accounts.

• True

• False

It is mentioned in one of the presentation slides that ______ is a safeguard to ensure fiduciary responsibility.

• Audits

• Personal reports

• End-of-year financial ledgers

• A presidential system