CBS CBS Corporate Governance & Ethics

Question 1

Which governance model separates the roles of CEO and Board Chair to reduce conflicts of interest?

Accepted Answer

Dual leadership structure

Answer

Unitary board model

Answer

Stewardship model

Answer

Agency theory model

Question 2

A company's code of ethics primarily serves to:

Accepted Answer

Guide employee behavior and decision-making aligned with organizational values

Answer

Maximize short-term shareholder profits

Answer

Establish legal immunity for executives

Answer

Replace government regulations

Question 3

Which U.S. legislation significantly strengthened corporate governance requirements for publicly traded companies after major accounting scandals?

Accepted Answer

Sarbanes-Oxley Act

Answer

Sherman Antitrust Act

Answer

Dodd-Frank Act

Answer

Securities Exchange Act of 1934

Question 4

In agency theory, who is the 'principal' in the relationship between shareholders and management?

Accepted Answer

The shareholders

Answer

The CEO

Answer

The Board of Directors

Answer

The CFO

Question 5

A whistleblower policy in corporate governance is designed to:

Accepted Answer

Encourage reporting of unethical conduct without fear of retaliation

Answer

Penalize employees who report misconduct

Answer

Monitor competitor activities

Answer

Control marketing communications

Question 6

Which concept refers to a company's obligation to consider the interests of all stakeholders, not just shareholders?

Accepted Answer

Corporate Social Responsibility (CSR)

Answer

Shareholder primacy

Answer

Fiduciary duty

Answer

Profit maximization