Financial Literacy Quiz

People or entities who have a financial interest in a business or can be monetarily affected by the decisions of a business are referred to as:

• mediation experts.

• inquisitive agents.

• stakeholders.

• consultants.

Mechanisms put in place to make sure corporate governance will be effective are referred to as:

Vic's Vinyl Flooring creates its own corporate policies and procedures and controls all levels of the business. This helps it to avoid disasters before they occur and is known as:

• corporate bylaws

• corporate welfare

• corporate takeover

• corporate governance

The policies and procedures used by the board of directors or owner to manage a corporation are known as:

• corporate bylaws.

• corporate welfare.

• corporate takeover.

• corporate governance.

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

• company culture

• corporate

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

What are the four principles of corporate governance?

• accountability, fairness, transparency, and profitability

• accountability, fairness, profitability, and independence

• accountability, fairness, transparency, and independence

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

• corporate culture

• corporate governance

• fellow board members

• roles and responsibilities