Reference no: EM132222939
1. The main reason for greater efficiency and wealth creating power stems from the shareholders' rolls as:
a) residual risk bearers
b) potential scapegoats
c) residual tranche payees
d) potential debt collectors
2. Shareholders provide a critical resource needed by business organizations, namely capital.
a) True
b) False
3. Employees, customers, suppliers, shareholders, and stockholders are all considered:
a) cooperatives
b) directors
c) stakeholders
d) auditors
4. Management decision making is a ____________ form of protection than legally enforceable contracts or legal rules.
a) stronger
b) weaker
5. Corporate decision making is more efficient and effective when management has:
a) a single, clearly defined objective
b) Multiple objectives to spread the risk over several opportunities
6. Which of the following is NOT one of the various provisions the Sarbanes-Oxley Act of 2002 addresses?
a) financial reporting
b) employee hiring structure
c) corporate management
d) criminal law
7. Directors, executives, and the CEO play a critical role in ensuring corporate accountability.
a) True
b) False