Question

Assuming you want to invest in a particular company, which of the following would you consider...

Assuming you want to invest in a particular company, which of the following would you consider a corporate governance red flag? (you may choose more than one answer)

a.

CEO has the majority of the voting right
b.

Board of directors has 9 members, 7 of which are independent members
c.

The firm one class of shares with one share one vote right
d.

the company has a classified board
e.

CEO of the firm is also the chairman of the board
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
e.

CEO of the firm is also the chairman of the board

Financial experts agree that CEOs of high-growth companies shouldn’t have the same person serving as CEO, especially for high-growth companies.

The main benefit in separating the two roles is that it distinctly separates the roles of the board and management. The separation also allows each person to devote the proper time to their role. Since the board of directors is tasked with evaluating the CEO and senior executives and setting their pay, separating the CEO and the Chairman of the Board roles eliminates potential conflicts of interest.

PLEASE APPRECIATE THE ANSWER

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following is not a characteristic of a Board of Directors that usually leads...
Which of the following is not a characteristic of a Board of Directors that usually leads to effective corporate governance.    Board members are compensated appropriately (not too high, and some compensation is linked to company’s performance). The board has a majority of inside management who have a deep understanding of the company. The board is not too large. The CEO is not also the chairman of the board and does not have undue influence over the nominating committee None of...
Which one of the following statements is TRUE? a. Frequently, large boards of directors are less...
Which one of the following statements is TRUE? a. Frequently, large boards of directors are less effective than small boards of directors. b. Since outside directors have no other connection with the firm, they are indebted to the CEO for putting them on the board. c. The more members of a board of directors, the better its function. d. A company whose board members are elected in staggered terms is said to be an interlocking board of directors. e. A...
Which of the following is NOT a concern specific to the effectiveness of the board of...
Which of the following is NOT a concern specific to the effectiveness of the board of directors? a. The election mechanisms in place such as the use of a classified board or the use of a non-cumulative voting system. b. The number of insiders and outsiders on the board of directors. c. Board members’ compensation. d. The number of outside blockholders. e. Whether the firm has a “dual CEO”.
You are an audit manager of PY and have been assigned to the audit of TT...
You are an audit manager of PY and have been assigned to the audit of TT Co (TT), a company which is planning to list on a stock exchange within six months. The listing rules of the stock exchange require compliance with corporate governance principles, and the directors are unsure whether they are following best practices in relation to this. They have asked the audit engagement partner for their view on this matter. TT’s board is comprised of six executive...
Sax Co. sells insurance, and it has recently become a listed company. In accordance with corporate...
Sax Co. sells insurance, and it has recently become a listed company. In accordance with corporate governance guidelines, the finance director of Sax is reviewing the company’s corporate governance practices. Bill Bassoon is the chair of Sax. Bill vacated the CEO position last year to become the chair of the board, and a new CEO has not yet been found. Bill is unsure if Sax needs more non-executive directors. There are currently six members on the board, which consists of...
The board of directors for a particular company consists of 10 members, 6 of whom are...
The board of directors for a particular company consists of 10 members, 6 of whom are loyal to the current company president and 4 of whom want to fire the president. Suppose the chair of the board (who is a loyal supporter of the current president) suggests to randomly select 4 other board members to serve on a committee to decide the president’s fate. Find the probability for the first 3 questions and explain your answer for the fourth question....
The Government has recently launched a new and innovative transport system in the country, which is...
The Government has recently launched a new and innovative transport system in the country, which is managed by the Metro Express Co Ltd. The CEO of the company is aware That a big Challenge lies ahead in managing d new company and to run it efficiently. The Chairperson of the Board of Directors has stated, at the first meeting, that "Managing an organisation requires Various skills and the ability to organise various resources. All these tasks must be executed with...
Everson Importers has 1,500 shares of common stock outstanding of which Dino owns 500 shares. The...
Everson Importers has 1,500 shares of common stock outstanding of which Dino owns 500 shares. The company has 3 open seats on the board of directors. Dino wishes to be elected to the board but realizes that no one else will vote for him. To guarantee his election, Dino will have to own ___ of 1,500 plus 1 of the shares if the firm uses voting versus owning ___ of 1,500 plus 1 of the shares if the firm uses...
Question 14 After successfully completing your corporate finance class, you feel the next challenge ahead is...
Question 14 After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Marine Enterprises. Unfortunately, you will be the only individual voting for you. If Marine Enterprises has 350,000 shares outstanding and the stock currently sells for $52, which of the following scenarios would be the least expensive in order for you to buy a seat on the board? Group of answer choices Only one open seat; Voting...
Select the statement that is untrue. The following factors in ASIC v Adler were taken into...
Select the statement that is untrue. The following factors in ASIC v Adler were taken into account when the court disqualified him as a director: a.Loss suffered by the shareholders. b.Dishonest conduct; c.Abuse of trust; d.His negotiation skills as a director; e.Loss suffered by the company; 1 points   QUESTION 2 Select the statement that is untrue. Remedies for breach of fiduciary duty are: a.Recission of contract. b.Constructive trust; c.Account for profits; d.Equitable compensation; e.Dejunction; 1 points   QUESTION 3 Are directors...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT