Question

1. In 2013, median compensation for directors at the largest U.S. corporations was around:

a. $150,000.

b. $240,000.

c. $550,000.

d. $1,200,000.

2. It is the responsibility of the board of directors and its audit committee to engage an independent accounting firm to audit the financial statements prepared by management.

a. true

b. false

3. The Organization for Economic Cooperation and Development (OECD), representing 34 nations, issued a revised set of principles of corporate governance to serve as a benchmark for companies and policymakers worldwide.

a. true

b. false

4. The two main types of investors that own shares of stock in U.S. corporations are individuals and institutions.

a. true

b. false

5. In 2014, of the following nations, the fastest growing stock market was in:

a. United States.

b. Japan.

c. India.

d. Indonesia.

6. Boards of directors in the United States are required to staff their compensation committees exclusively with outside directors.

a. true

b. false

Answer 1

Ans 1: b. $240,000

Ans 2: a. true

Ans 3: b. false

Ans 4: a. true

Ans 5: c. India

Ans 6: a. true