Prevent conflicts of interest between two groups

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Corporate governance is the process by which a firm is run and controlled by its managers and board of directors. Typically, the firm's board of directors is responsible for ensuring the firm is acting in the best interest of its shareholders; however, there are instances when outside agencies need to step in to make sure shareholders aren't being misled by the firm.

In 2002, the SEC imposed new rules to prevent conflicts of interest between which two groups?

a. Analysts and the firm that employs them

b.Analysts and firms they are analyzing

c. Analysts and shareholders

d. Analysts and the SEC

True or False: A firm functioning inefficiently might be targeted in an acquisition to provide synergistic benefits to the acquiring firm.

a. True

b. False

Reference no: EM133253301

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