Question

Which of the following is one of the responsibilities that will affect boards of directors in the future?

Select one:

A. Boards will make more and more of the daily decisions in a company.

B. The selection of board members must become increasingly formalized, with less emphasis on personal networks and word of mouth.

C. Board members will be paid more compensation due to their increase in duties.

D. Serving on boards will require less of a commitment than in the past.

one of the reasons owners and managers differ in perspective is because of _____.

Select one:

a. Sarbanes-Oxley

b. info. Asymmetry

c. cognitive trending

d. all of these

which economist is interested in a bigger “G”?

Select one:

a. Smith

b. Keynes

c. Hayak

d. none of these

Answer 1

1) (a) Boards will make more and more of the daily decisions in a company.

Explanation - If the board member take decision on daily basis. It can effect the companies strategy and also it can demotivate the employee as they have to follow that decisions on daily basis. All the other options are correct. Which is helpful for the Board of directors.

2) (a) Sarbanes-Oxley

Explanation - Sarbanes-Oxley act in 2002 crack down the corporate fraud. In which it banned to give the loan to executives and give the jobsecurity to the whistleblower. Which can create a difference in perspective in owners and managers.

3) (c) Hayak

Explanation - Friedrich Hayek is a famous economist and political philosopher. He is interested in effects of Bigger G or Biggest government.