Question 1

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it. -Church groups are key members in the shareholder activist movement. One way that they gain access to corporate executives is by purchasing a small amount of stock and holding it a certain length of time (state laws usually dictate how much they need to buy and how long they need to hold it), which then allows them to introduce shareholder resolutions at stockholder meetings. Should small investors be able to wield influence like this, which arguably goes beyond their financial stake in the firm?

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Question 2

Provide a short answer to each of these questions. Be sure to fully explain your answer. -Describe how the separation of ownership and control came about.

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Question 3

Provide a short answer to each of these questions. Be sure to fully explain your answer. -Why is insider trading illegal and considered unethical? Isn't that exactly what financial markets are supposed to do--reward those who make good decisions?

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Question 4

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it. -Discuss the role of shareholder democracy in corporate governance.

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Question 5

Provide a short answer to each of these questions. Be sure to fully explain your answer. -Why are church groups particularly visible in the shareholder activist movement?

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Question 6

The fact that company information should be made at regular and frequent intervals and should contain information that might affect the investment decisions of shareholders is contained in the concept of

Accepted Answer

The concept of full disclosure and transparency both emphasize the need for companies to provide regular and frequent information that could impact shareholders' investment decisions. Therefore, the best choice is D, both full disclosure and transparency.

Question 7

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it. -Should directors be held personally liable in cases of corporate misconduct?

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Question 8

Provide a short answer to each of these questions. Be sure to fully explain your answer. -Why is the generous nature of CEO retirement packages particularly frustrating to the public?

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Question 9

Provide a short answer to each of these questions. Be sure to fully explain your answer. -List the reasons that good candidates for corporate board positions are hard to find.

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Question 10

Provide a short answer to each of these questions. Be sure to fully explain your answer. -What is the difference between an owner and an investor?

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Question 11

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it. -Forecast how society would change if business did lose its macro level of legitimacy.

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Question 12

Provide a short answer to each of these questions. Be sure to fully explain your answer. -What are the two main issues associated with CEO pay?

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Question 13

Provide a short answer to each of these questions. Be sure to fully explain your answer. -Why are inside directors seen as problematic in corporate governance?

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Question 14

One of the main ways in which shareholder activists communicate their concerns to management is through

Accepted Answer

Shareholder activists typically communicate their concerns to management through shareholder resolutions, which are proposals submitted by shareholders for a vote at a company's annual meeting. These resolutions can cover a wide range of topics, including board composition, executive compensation, environmental and social issues, and corporate governance practices. While the Internet, blogging, and advertisements in mass media outlets may also be used by shareholder activists to promote their cause and gain support, shareholder resolutions are the primary mechanism for communicating specific concerns directly to company management.

Question 15

Provide a short answer to each of these questions. Be sure to fully explain your answer. -What is the primary problem inherent in management control of the firm?

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Question 16

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it. -Explain Harry Markopolos' opinion regarding the SEC.

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Question 17

Provide a short answer to each of these questions. Be sure to fully explain your answer. -Summarize the responsibilities that corporations should have toward their shareholders.

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Question 18

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it. -The textbook mentions that business as a whole rarely, if ever, addresses the issue of legitimacy at the macro level. Imagine that the Chamber of Commerce approaches you to design a campaign to assure its legitimacy with the public. What kinds of issues would you address?

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Quiz 4: Corporate Governance: Foundational Issues.

Provide a short answer to each of these questions. Be sure to fully explain your answer. -Describe how the separation of ownership and control came about.

Provide a short answer to each of these questions. Be sure to fully explain your answer. -Why is insider trading illegal and considered unethical? Isn't that exactly what financial markets are supposed to do--reward those who make good decisions?

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it. -Discuss the role of shareholder democracy in corporate governance.

Provide a short answer to each of these questions. Be sure to fully explain your answer. -Why are church groups particularly visible in the shareholder activist movement?

The fact that company information should be made at regular and frequent intervals and should contain information that might affect the investment decisions of shareholders is contained in the concept of

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it. -Should directors be held personally liable in cases of corporate misconduct?

Provide a short answer to each of these questions. Be sure to fully explain your answer. -Why is the generous nature of CEO retirement packages particularly frustrating to the public?

Provide a short answer to each of these questions. Be sure to fully explain your answer. -List the reasons that good candidates for corporate board positions are hard to find.

Provide a short answer to each of these questions. Be sure to fully explain your answer. -What is the difference between an owner and an investor?

Provide a short answer to each of these questions. Be sure to fully explain your answer. -What are the two main issues associated with CEO pay?

Provide a short answer to each of these questions. Be sure to fully explain your answer. -Why are inside directors seen as problematic in corporate governance?

One of the main ways in which shareholder activists communicate their concerns to management is through

Provide a short answer to each of these questions. Be sure to fully explain your answer. -What is the primary problem inherent in management control of the firm?

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it. -Explain Harry Markopolos' opinion regarding the SEC.

Provide a short answer to each of these questions. Be sure to fully explain your answer. -Summarize the responsibilities that corporations should have toward their shareholders.