Question 1

There are dangers associated with excessive governance as it causes managers to be overly cautious,more risk adverse,and diminishes innovation.

Accepted Answer

Excessive governance can stifle innovation and creativity as managers become more concerned with avoiding risks and following strict protocols. This can lead to missed opportunities and a lack of innovation within the organization.

Question 2

How does the creation of restricted shares contradict the tenant that ownership in a corporation implies control?

Accepted Answer

The answer of How does the creation of restricted shares...

Question 3

Directors have become overseers of CSR and ethical conduct.

Accepted Answer

With the increasing emphasis on corporate social responsibility and ethical conduct, directors have increasingly become responsible for overseeing and guiding their organization's policies and initiatives in this area.

Question 4

Lawyers who are directors of a corporation are considered independent.

Accepted Answer

Lawyers who are directors of a corporation are not considered independent as they are closely associated with the corporation and may have professional and financial interests that conflict with the interests of other shareholders.

Question 5

Describe the structure of a board of directors.

Accepted Answer

The answer of Describe the structure of a board of...

Question 6

Corporate governance practices have come under increasing scrutiny and owners pressure the corporation's main governing body,the board of directors,to address corporate responsibility and sustainability challenges.

Accepted Answer

This statement is true. Corporate governance practices have indeed come under increasing scrutiny, and owners are putting pressure on the board of directors to address corporate responsibility and sustainability challenges.

Question 7

The CEO pay ratio is the ratio of the compensation of the corporation's chief executive officer (CEO)to the median compensation of its employees.

Accepted Answer

The CEO pay ratio is the ratio of CEO compensation to median employee compensation.

Question 8

An audit committee comprises members of the board of directors and oversees the internal and external accounting auditing function to ensure that financial statements accurately and appropriately represent the condition of the corporation and that regulated disclosures are made.

Accepted Answer

This statement accurately describes the purpose and function of an audit committee.

Question 9

The role of a board member is to monitor and evaluate the corporation's activities and performance.

Accepted Answer

The role of a board member is to provide oversight and guidance to the management of a corporation, including monitoring and evaluating the corporation's activities and performance.

Question 10

Is there a requirement insofar as the number of independent directors is concerned when forming a Board of Directors for a Canadian corporation? Explain.

Accepted Answer

The answer of Is there a requirement insofar as the...

Question 11

Evaluate the following statement: Ownership of one share means one vote.

Accepted Answer

The answer of Evaluate the following statement: Ownership of one...

Question 12

About 20 percent of the directors of Canada's largest corporations are women.

Accepted Answer

This statement is true, as of 2021 approximately 20 percent of the directors of Canada's largest corporations are women. However, there is still a significant gender disparity in corporate leadership positions.

Question 13

Describe two self-regulatory agencies and organizations.

Accepted Answer

The answer of Describe two self-regulatory agencies and organizations....

Question 14

Most boards comprise 50 to 100 members who serve on various committees.

Accepted Answer

Most boards, especially in corporate settings, are much smaller, typically ranging from 3 to 31 members, to allow for more effective governance and decision-making.

Question 15

How has Mountain Equipment Co-op implemented ethics and integrity into their business model?

Accepted Answer

The answer of How has Mountain Equipment Co-op implemented ethics...

Question 16

When,and under what circumstances,did corporate governance become an issue with the media?

Accepted Answer

The answer of When,and under what circumstances,did corporate governance become...

Question 17

Corporate governance experts and regulatory bodies recommend that different persons occupy the positions and that an independent director act as chair.

Accepted Answer

This statement is true. It is recommended that different individuals occupy the positions of CEO and chairperson, and that an independent director act as chair to ensure unbiased decision-making and accountability. This is considered good corporate governance practice.

Question 18

Securities regulation shields top executives of publicly traded corporations from having to disclose their compensation.

Accepted Answer

Securities regulation requires publicly traded corporations to disclose executive compensation in various forms, including salary, bonuses, stock options, and other benefits. This information is typically disclosed in annual proxy statements and other SEC filings.

Question 19

Compare and contrast passive stakeholders with active stakeholders.

Accepted Answer

The answer of Compare and contrast passive stakeholders with active...

Quiz 11: Responsible Ownership and Governance