Podcast
Questions and Answers
Which of the following is not crucial to the integrity and efficiency of capital markets and economic growth?
Which of the following is not crucial to the integrity and efficiency of capital markets and economic growth?
Investors should rely on which of the following to make rational, informed investment decisions?
Investors should rely on which of the following to make rational, informed investment decisions?
Conflicts of interest among corporate governance participants are referred to as an:
Conflicts of interest among corporate governance participants are referred to as an:
The primary mission of a public company is to:
The primary mission of a public company is to:
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Congress passed the Sarbanes-Oxley Act of 2002 to:
Congress passed the Sarbanes-Oxley Act of 2002 to:
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Suppliers and customers reward good corporate performance by:
Suppliers and customers reward good corporate performance by:
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The primary stakeholders are:
The primary stakeholders are:
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Research suggests that firms with ____ perform better, especially when collaboration among top management team members is important.
Research suggests that firms with ____ perform better, especially when collaboration among top management team members is important.
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The separation between firm ownership and management creates a(n) ____ relationship.
The separation between firm ownership and management creates a(n) ____ relationship.
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Monitoring by shareholders is usually accomplished through:
Monitoring by shareholders is usually accomplished through:
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Executive compensation is a governance mechanism that seeks to align managers’ and owners’ interests through all of the following EXCEPT:
Executive compensation is a governance mechanism that seeks to align managers’ and owners’ interests through all of the following EXCEPT:
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Which of the following is not a responsibility of the audit committee?
Which of the following is not a responsibility of the audit committee?
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An independent director is expected to except:
An independent director is expected to except:
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__________ can be considered to be a high-level statement of corporate governance good practices and are applicable to all companies.
__________ can be considered to be a high-level statement of corporate governance good practices and are applicable to all companies.
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All of the following are Principles of Good Corporate Governance except:
All of the following are Principles of Good Corporate Governance except:
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Which of the following statements is true about ethical decision making in business?
Which of the following statements is true about ethical decision making in business?
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Which of the following statements is true about ethical decision making in business?
Which of the following statements is true about ethical decision making in business?
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Study Notes
Corporate Governance
- Integrity and efficiency of capital markets and economic growth depend on sustainability and financial health of public companies, public trust and investor confidence.
- Investors rely on accurate financial statements and reports to make informed investment decisions.
- Conflicts of interest among corporate governance participants are known as an agency problem.
- The primary mission of a public company is to create sustainable and enduring corporate value.
- The Sarbanes-Oxley Act of 2002 aimed to enhance investor protection and increase the workload of public company auditors.
- Suppliers and customers reward good corporate performance by actively and favorably doing business with the company.
- Shareholders, creditors, customers, and suppliers are considered primary stakeholders.
- Research suggests that firms with smaller pay gaps between the CEO and other top executives perform better.
- The separation between firm ownership and management creates an agency relationship.
- Monitoring by shareholders is typically done through the board of directors.
- Executive compensation aims to align managers’ and owners’ interests through bonuses, long-term incentives, and penalties for inadequate firm performance.
- Audit committee responsibilities include reviewing corporate reporting processes, overseeing relations with independent auditors, and monitoring management, but not management compensation.
- Independent directors are expected to apply expertise and skills in the corporation's best interest, respect collective board decisions, and act as a conduit between the board and the organization.
- Principles provide high-level statements of good corporate governance practices applicable to all companies.
Business Ethics
- Ethical decision-making in business is not limited to major corporate decisions and involves every employee.
- Business ethics cannot be fully covered by economic, legal, or company rules and regulations and relies on personal values and principles of individuals.
Risk Management & Internal Control
- [This section does not provide information on risk management or internal control].
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Description
Explore the fundamental concepts of corporate governance, including the importance of transparency, stakeholder roles, and the impact of legislation like the Sarbanes-Oxley Act. Understand how conflicts of interest and executive pay gaps can influence corporate performance and decision-making.
