SAPP CFA CI 3

How many Learning Outcomes in Module 3?

• 1

• 2

• 3

• 4

Which of the following stakeholders are most likely to demand high-
er returns and risk premiums when faced with greater information asymme- try due to the greater potential conflicts of interest?

• 1. Directors and managers

• 1. Suppliers and customers

• 1. Shareholders and lenders

Which of the following best describes shareholder activists? Share- holder activists:

• 1. help stabilize a company’s strategic direction

• 1. have little effect on the company’s long-term investors

• 1. are unlikely to alter the composition of a company’s shareholder base

Which committee is compensation under?

• Audit Committee

• Remuneration Committee

• Nominating/ Governance Committee

"Shareholders are persuaded to vote for a group seeking a controlling position on the company’s BOD" is about?

• Proxy fight

• Tender offer

• Hostile takeover