Corporate Governance
Exam Answer Key
Course Introduction
Corporate Governance explores the systems, principles, and processes by which corporations are directed and controlled. This course examines the roles and responsibilities of the board of directors, management, shareholders, and other stakeholders in promoting ethical decision-making, accountability, and transparency. Students will analyze the impact of corporate governance structures on organizational performance, risk management, and compliance, with attention to legal and regulatory frameworks across various jurisdictions. Case studies and contemporary issues, such as executive compensation, shareholder activism, and sustainability, are integrated to provide a comprehensive understanding of effective governance practices in today's dynamic business environment.
Recommended Textbook
Business Its Legal Ethical and Global Environment 11th Edition by Marianne
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20 Chapters
2727 Verified Questions
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Page 2
M. Jennings
Chapter 1: Introduction to Law
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) Zoning is an example of private law.
A)True
B)False Answer: False
Q2) Which of the following is \(\underline{\text{not}}\) part of the United States Code?
A)1933 Securities Act
B)Sherman Act
C)Equal Employment Opportunity Act
D)Uniform Commercial Code
E)All of the above are part of the United States Code. Answer: D
Q3) There are no criminal laws at the federal level.
A)True
B)False Answer: False
Q4) The U.S.Constitution does not apply to the states.
A)True
B)False Answer: False
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Chapter 2: Business Ethics and Social Responsibility
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131 Verified Questions
131 Flashcards
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Sample Questions
Q1) Compliance with the law meets all ethical standards.
A)True
B)False
Answer: False
Q2) In the Parable of the Sadhu:
A)the lesson of personal values vs.organizational or group values is drawn.
B)the lesson that the rules of business prevail over personal values is drawn.
C)the lesson of survival of the fittest is given.
D)the lesson of "every man for himself" is critical for business survival.
Answer: A
Q3) Trust is not critical to investment or economic success.
A)True
B)False
Answer: False
Q4) The Corruptions Perceptions Index compiled by Transparency International:
A)shows that all countries' governments are corrupt.
B)shows a correlation between corruption and the lack of economic development.
C)shows corruption is acceptable in most countries.
D)none of the above
Answer: B
Page 4
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Chapter 3: The Judicial System
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137 Verified Questions
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Sample Questions
Q1) Which of the following is true?
A)The suit cannot be brought in federal district court because the case does not meet the requirements for federal jurisdiction.
B)The suit can only be brought in state court because it does not involve a federal question.
C)The suit should be dismissed because the claim is far-fetched.
D)The suit can be brought in federal district court.
Answer: D
Q2) The principle of stare decisis requires that all similar cases be decided the same way.
A)True
B)False
Answer: False
Q3) An en banc hearing is one in which all the judges participate.
A)True
B)False
Answer: True
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Chapter 4: Managing Disputes: Alternative Dispute
Resolution and Litigation Strategies
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148 Verified Questions
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Sample Questions
Q1) A jury selection firm working for a plaintiff in a slip-and-fall case culled through the jurors' Facebook pages and found that one of the jurors had dated the plaintiff.Which of the following is correct about the plaintiff's rights during jury selection?
A)The juror can be removed for cause.
B)Lawyers are not permitted to use information placed on Facebook for purposes of striking jurors.
C)The juror cannot be removed for cause, but the plaintiff's lawyer could use a peremptory challenge.
D)The juror can be struck with a peremptory challenge, but the lawyer will have to give a reason.
Q2) A prima facie case:
A)is one that has met the elements of proof.
B)is one that is dismissed following a motion for a directed verdict.
C)is a term that applies in criminal law only.
D)both a and c
Q3) The plaintiff is the only party in a suit who can counterclaim.
A)True
B)False
Q4) Describe the role of jury selection consultants.
Page 6
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Chapter 5: Business and the Constitution
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Sample Questions
Q1) State and local governments can exercise eminent domain under the Kelo decision:
A)only when there is a clear public purpose use proposed for the land being taken.
B)if there is a plan for economic development or revitalization.
C)only if the land will be used by another public entity.
D)both a and c
Q2) The rights of land owners in eminent domain are protected by the:
A)First Amendment.
B)Fifth Amendment.
C)Fourteenth Amendment.
D)Fourth Amendment.
Q3) In supremacy clause cases,legislative intent of Congress is examined.
A)True
B)False
Q4) For state regulation of interstate commerce to be constitutional:
A)the state's purpose must be to protect the public's health and safety.
B)the state cannot place an undue burden on interstate commerce.
C)either a or b
D)both a and b
Q5) Discuss the ruling and the importance of Citizens United.
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Chapter 6: Administrative Law
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Sample Questions
Q1) Choose the one with the correct ordering of rulemaking functions from among the following:
A)enabling statute, comment period, studies of issues, promulgation
B)enabling statute, studies of issues, promulgation, comment period
C)enabling statute, studies of issues, comment period, promulgation
D)None of the above is in correct order.
Q2) The Federal Register Act is part of the Administrative Procedures Act.
A)True
B)False
Q3) Because of Earl Devaney's ethical stances as Inspector General for the Department of Interior he has never held another position with the federal government.
A)True
B)False
Q4) The Federal Privacy Act:
A)is the same as the Regulatory Flexibility Act.
B)does not apply to medical and employment histories.
C)is part of the Administrative Procedures Act.
D)applies to all law enforcement information exchanges.
Q5) Name the three government publications covered under the Federal Register Act.
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Chapter 7: International Law
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Sample Questions
Q1) The Foreign Corrupt Practices Act does not apply to U.S.citizens when they are working in other countries.
A)True
B)False
Q2) Which of the following is covered under the FCPA's prohibitions?
A)obtaining business
B)retaining business
C)directing business
D)all of the above
Q3) Under the doctrine of sovereign immunity,commercial transactions cannot be regulated.
A)True
B)False
Q4) Which of the following sets limits on removal of profits from a country?
A)expropriation
B)forum non conveniens
C)repatriation
D)sovereign immunity
Q5) Why are pirates so difficult to prosecute?
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Chapter 8: Business Crime
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Sample Questions
Q1) Bernie Ebbers,the former CEO of WorldCom,on trial for securities fraud and other crimes,offered as his defense that he did not know what his officers were doing.
A)Ebbers' defense is a valid one because there is no intent.
B)Ebbers' defense is a valid one because there is no actus reus.
C)Ebbers can be held liable for the actions of employees.
D)both a and b
Q2) Wiring money to terrorist groups is not a violation of the USA Patriot Act.
A)True
B)False
Q3) Plea bargaining is done only before the arraignment.
A)True
B)False
Q4) Under Sarbanes-Oxley,auditors must retain their work papers:
A)for one year.
B)for three years.
C)for five years.
D)until they no longer represent a client.
Q5) Discuss the procedural changes made as a result of Arizona v.Gant.
Q6) Explain the changes Sarbanes-Oxley made to criminal laws.
Page 10
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Chapter 9: Business Torts
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Sample Questions
Q1) Opinion commentary is not defamation.
A)True
B)False
Q2) The "bystander effect" is an exception to contributory negligence liability.
A)True
B)False
Q3) Cynthia Fromm and Delores Rankin left after their fall semester finals for a four-day skiing trip in Northern Arizona.During their return drive,they hit a severe snowstorm and were having difficulty with directions.They took a wrong turn onto a road that is closed during the winter months and is not plowed.The winter barricades for the road were not yet in place.Fromm and Rankin were soon stuck in the snow.They remained in their vehicle for 11 days until they were rescued by snowmobilers.Both had severe frostbite.Fromm lost both feet.Rankin lost all of her toes.Both filed suit against the state of Arizona for its failure to put up barricades in a timely fashion.Should the state be held liable?
Q4) Testimony in a court room is not privileged for purposes of defamation actions.
A)True
B)False
Q5) Discuss why whistle-blowers should receive some kind of protection from defamation claims.
Page 11
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Chapter 10: Environmental Regulation and Sustainability
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119 Flashcards
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Sample Questions
Q1) Ralph Watkins owns a large home on a two-acre lot in Tempe,Arizona.Watkins has much of the lot covered with tiff grass and is meticulous about mowing the lawn.Watkins piles the grass clippings near his back fence and removes them on a semiannual basis.The clippings attract crickets,rodents,scorpions,and other forms of desert life.Watkins' neighbor,Vern Brown,has noted that the various forms of desert life scale the wall and invade his property.Brown has worked with his exterminator but his exterminator has told him that the grass clippings must go before the bugs will go.Brown:
A)could clean up the pile and recover from Watkins under CERCLA.
B)could report Watkins for violating the Solid Waste Disposal Act.
C)could seek an injunction against Watkins on the basis of nuisance.
D)would not have a nuisance claim since he is the only one who is affected.
Q2) Violations of the Clean Air Act:
A)carry civil and criminal penalties.
B)carry only civil penalties.
C)can be remedied only by a suit brought by another citizen.
D)are handled by the Justice Department.
Q3) Private citizens may not bring suit under federal environmental legislation.
A)True
B)False
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Chapter 11: Contracts and Sales: Introduction and Formation
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157 Flashcards
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Sample Questions
Q1) Contracts for the sale of land must be in writing to be enforceable.
A)True
B)False
Q2) Name the statutes that affect contract formation in cyberspace.
Q3) Which of the following contract subject matters must be evidenced by a writing to be enforceable under the statute of frauds?
A)a contract for the sale of an easement for $75
B)a contract for the sale of a computer monitor for $220
C)a contract for consulting for 6 months @ $10,000 per month plus expenses
D)All of the above must be in writing.
Q4) Which is \(\underline{\text{not}}\) a requirement for a merchant's confirmation memorandum?
A)evidenced by a record
B)signed by both parties
C)underlying oral agreement
D)none of the above
Q5) Predatory lending involves high interest rates and title loans.
A)True
B)False
Q6) Is there a contract? Page 13
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Chapter 12: Contracts and Sales: Performance,Remedies,and
Collection
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156 Verified Questions
156 Flashcards
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Sample Questions
Q1) Covenants not to compete are valid only in sales of a business.
A)True
B)False
Q2) In a relationship of dependence,the failure to deal fairly can result in liability for the party controlling the contract term.
A)True
B)False
Q3) Incidental damages are the costs of being compensated and are nonrecoverable. A)True
B)False
Q4) All contracts have conditions for performance.
A)True
B)False
Q5) The Fair Debt Collections Practices Act applies only to consumer credit collection.
A)True
B)False
Q6) Duress requires proof of physical force.
A)True
B)False
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Chapter 13: Product Advertising and Liability
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Sample Questions
Q1) The Listeria found in Blue Bell ice cream is an example of:
A)a breach of the implied warranty of merchantability.
B)a breach of the implied warranty of fitness for a particular purpose.
C)not a breach of warranty because Listeria is naturally occurring.
D)a case of negligence.
Q2) Discuss why the Consumer Product Safety Improvement Act included rules for resellers of certain types of products.
Q3) The term "AS THEY STAND" serves to disclaim:
A)the implied warranty of merchantability.
B)the implied warranty of fitness for a particular purpose.
C)both a and b
D)none of the above unless it is in writing
Q4) A children's Halloween make-up kit states that it is "non-toxic." Several children developed severe rashes and eye infections following use of the product on Halloween.Does the manufacturer have any liability?
Q5) The Consumer Product Safety Improvement Act of 2008 includes rules covering the resale of goods such as in a garage sale.
A)True
B)False
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Chapter 14: Business Competition: Antitrust
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Sample Questions
Q1) Which of the following arrangements is subject to the rule of reason test?
A)sole outlets and exclusive distributorships
B)resale price maintenance
C)tying
D)All of the above are under the rule of reason test.
Q2) Greg Rafft,president of the Tricounty Brokerage Association,addressed the members at a luncheon meeting.He suggested that the association purchase two of the area's top three title insurance firms.Are there any antitrust problems with such an acquisition?
Q3) Phillip Esten operates a mail store in which he offers various services such as packaging items for shipment,delivering items to overnight services,and a fax machine.Esten has been charging $2.00 per page for the fax service,but a new store has opened in a nearby shopping center that is charging $1.00 per page.Esten lowers his price to $.50 per page,knowing this charge will not always cover his cost.Esten's actions:
A)constitute predatory pricing and are a violation of the Robinson-Patman Act.
B)constitute meeting the competition.
C)constitute resale price maintenance violations.
D)none of the above
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Chapter 15: Business and Intellectual Property Law
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Sample Questions
Q1) Misappropriation is the conversion of a trade secret.
A)True
B)False
Q2) What of the following could be protected as a trade secret?
A)chemical formula
B)supply chain management system of a company
C)customer list
D)All of the above are examples of trade secrets.
Q3) Washington Redskins wide receiver Pierre Garçon discovered that FanDuel,a fantasy sports company,was using his name and that of other NFL players in its daily ads.Mr.Garçon says that FanDuel does not have proper licensing.What form of property is Mr.Garçon trying to protect?
A)trade secret
B)trade name
C)trade dress
D)trademark
E)b, c, and d
F)b and d
Q4) Discuss the potential penalties under the Industrial Espionage Act.
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Chapter 16: Management of Employee Conduct: Agency
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Sample Questions
Q1) The Uniform Unincorporated Nonprofit Association Act provides for limited liability of the members of a nonprofit organization that is not incorporated.
A)True
B)False
Q2) If the act of an agent is ratified:
A)there is retroactive authority for the act.
B)the principal has agreed to allow the agent to be liable.
C)the agent then has express authority for that act in the future.
D)none of the above
Q3) Implied authority is the extension of express authority by custom.
A)True
B)False
Q4) Which of the following is necessary to create an agency relationship?
A)consideration
B)an agent with contractual capacity
C)a ratification by the principal
D)none of the above
Q5) Discuss the requirements for ending an agency relationship.
Q6) What is the difference between implied authority and apparent authority?
Q7) Discuss the basic requirements for a non-compete agreement.
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Chapter 17: Governance and Structure: Forms of Doing Business
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Sample Questions
Q1) In a ratification by the board of a pre-incorporation contract involving the corporation,the promoter,and a third party:
A)the corporation is released from liability.
B)the promoter is released from liability.
C)the promoter is made secondarily liable.
D)none of the above
Q2) "Say on pay" gets its name from stakeholders getting to vote on executive compensation.
A)True
B)False
Q3) Members of limited liability companies have no right to vote on who should manage their companies.
A)True
B)False
Q4) Shareholders generally elect the officers of the corporation.
A)True
B)False
Q5) Any shareholder can demand access to the corporate books and records. A)True
B)False
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Chapter 18: Governance and Regulation: Securities Law
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Sample Questions
Q1) The 1933 Securities Act regulates primary offerings.
A)True
B)False
Q2) Corporation A merges with Corporation B and becomes Corporation B.The transaction is a:
A)merger.
B)consolidation.
C)tender offer.
D)none of the above
Q3) To qualify for an intrastate offering exemption,the shares must contain transfer restrictions.
A)True
B)False
Q4) Put the following steps in the securities registration process in chronological order.??Experts' opinions?Registration filing?Red herring prospectus?Tombstone ad?Offers to sell securities?Sale of securities?Registration approval
Q5) A company registered on the New York Stock Exchange must file a 10-Q report. A)True
B)False
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Chapter 19: Management of Employee Welfare
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Sample Questions
Q1) Employees are not required to give consent to employer access to their e-mails under the Stored Communications Act.
A)True
B)False
Q2) The Taft-Hartley Act includes the presidential power to invoke a "cooling-off period" in transportation strikes.
A)True
B)False
Q3) The employer practice of "Googling" job applicants is not prohibited by federal law.
A)True B)False
Q4) Unemployment benefits are administered by the federal government.
A)True B)False
Q5) Overtime pay is computed on a:
A)monthly basis.
B)daily basis.
C)weekly basis.
D)none of the above
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Chapter 20: Management: Employment Discrimination
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Sample Questions
Q1) Employee misconduct is a defense to discrimination charges even if the misconduct was not known at the time of the alleged discrimination.
A)True
B)False
Q2) Julie Jensen is an x-ray technician who works in a clinic that treats patients with back problems.All patients are x-rayed as a first step in their treatment plans.Julie is pregnant.The clinic does not allow patients or its employees who are pregnant to have or be around the x-ray room.Julie is given a back-office job that pays less for the period of her pregnancy.Which of the following statements is correct?
A)The clinic's policy violates Title VII.
B)The clinic's policy does not violate Title VII because there is a valid business reason for the clinic's actions.
C)The clinic's policy will not violate Title VII if it applied to men who are of child-rearing age.
D)none of the above
Q3) State agencies are covered under Title VII.
A)True
B)False
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