Question

The main reason for greater efficiency and wealth creating power stems from the shareholders' rolls as:

		a)residual risk bearers
		b)potential scapegoats
		c)residual tranche payees
		d)potential debt collectors

QUESTION 5

Shareholders provide a critical resource needed by business organizations, namely capital.

		a)True
		b)False

QUESTION 6

Employees, customers, suppliers, shareholders, and stockholders are all considered:

		a)cooperatives
		b)directors
		c)stakeholders
		d)auditors

QUESTION 7

Management decision making is a ____________ form of protection than legally enforceable contracts or legal rules.

		a)stronger
		b)weaker

QUESTION 8

Corporate decision making is more efficient and effective when management has:

		a)a single, clearly defined objective
		b)Multiple objectives to spread the risk over several opportunities

QUESTION 9

Which of the following is NOT one of the various provisions the Sarbanes-Oxley Act of 2002 addresses?

		a)financial reporting
		b)employee hiring structure
		c)corporate management
		d)criminal law

QUESTION 10

Directors, executives, and the CEO play a critical role in ensuring corporate accountability.

		a)True
		b)False

Answer 1

4.

A

Shareholders play a role of residual risk bearers.

5.

True

Shareholders own shares and provide capital that is used to conduct necessary business activities.

6.

C

Stakeholders is a term collectively used for all the parties who are directly or indirectly affected by the decisions taken up by the companies.

7.

B

It is a weaker form, than that of legally binding contracts.

8.

A

Objectives should be clearly defined to make the decision making to become efficient.

9.

B

It is not covered under the act. The mentioned act is about bringing in corporate governance, financial and accounting reporting, setting up responsibilities and enforcing criminal liability if anyone found guilty and held accountable for the same.

10.

True

CEO, director and executives form the senior most management team and this is the team that brings willingness to implement corporate governance and related responsibilities.