Financial Planning II 2.02

Which involves a set of relationships between a company's management, its board, its shareholders, and other stakeholders?

• company culture

• corporate dynamics

• corporate governance

• corporate infrastructure

A responsibility of a board of directors involves planning expenses vs. revenue and using these numbers to create a projected financial blueprint for the company. This activity is referred to as:

• debating

• budgeting

• asset management

• strategic marketing

The fundamental legal duty requiring a board member to participate actively in making decisions on behalf of the organization and to exercise his or her best judgment while doing so is referred to as:

• care

• loyalty

• reliability

• obedience

Which principle of corporate governance protects shareholders' rights and makes sure the business treats all shareholders equitably?

• accountability

• fairness

• independence

• transparency

A fundamental challenge faced by many board members is failing to possess a strong understanding of the:

• corporate culture

• corporate governance

• fellow board members

• roles and responsibilities

What are the four principles of corporate governance?

• accountability, fairness, transparency, and profitability

• accountability, fairness, profitability, and independence

• accountability, fairness, transparency, and independence

• accountability, profitability, transparency, and independence

Members of a board of directors should refrain from all involvement in any way with a business competitor. This is necessary to avoid:

• a law suit

• business losses

• a conflict of interest

• friction within the board

The fundamental legal duty requiring a board member to put the interests of the organization before their personal and professional interests when acting on behalf of the organization in a decision-making capacity is the duty of:

• care

• loyalty

• obedience

• reliability

The fundamental legal duty which requires a board member to bear the legal responsibility of ensuring the organization complies with all applicable federal, state, and local laws and adheres to the company mission is referred to as the duty of:

• care

• loyalty

• reliability

• obedience