CBS CBS Corporate Governance & Ethics 3

Question 1

A conflict of interest in corporate governance arises when:

Accepted Answer

A director's personal interests could compromise their duty to the company

Answer

A board member disagrees with management

Answer

Two board committees have overlapping responsibilities

Answer

Shareholders vote against a board nominee

Question 2

Say-on-pay policies in U.S. corporate governance give shareholders the right to:

Accepted Answer

Vote on executive compensation packages (advisory)

Answer

Set individual executive salaries

Answer

Veto any board appointment

Answer

Demand access to company financial records

Question 3

Which governance practice ensures that no single individual has control over all key financial decisions?

Accepted Answer

Separation of duties

Answer

Succession planning

Answer

Executive coaching

Answer

Performance benchmarking

Question 4

Stakeholder theory, as opposed to shareholder theory, argues that corporations should:

Accepted Answer

Balance the interests of employees, customers, communities, and shareholders

Answer

Focus exclusively on maximizing stock price

Answer

Minimize regulatory compliance costs

Answer

Prioritize short-term earnings above all else

Question 5

An ethics hotline (helpline) in a corporation is primarily used to:

Accepted Answer

Allow anonymous reporting of potential ethical violations

Answer

Field customer service complaints

Answer

Communicate internal HR policies

Answer

Handle investor relations inquiries

Question 6

Which governance body is directly elected by shareholders and is responsible for hiring and overseeing the CEO?

Accepted Answer

Board of Directors

Answer

Executive committee

Answer

Management team

Answer

Audit committee