题目
BU.231.720.51.FA25 Final Exam- Requires Respondus LockDown Browser
单项选择题
Background: Shelley Newcome is the new CEO for a publicly traded financial services company, Asset Management Co. (AMC). Newcome is new to the corporate governance requirements of a publicly traded company; she previously worked for a family office that invested in private equity. At her first board meeting, the company's first in six months, she asks a director what the objectives of corporate governance should be. The director tells her that the most important objective he can think of is to eliminate or mitigate conflicts of interest among stakeholders. One of Newcome's first steps as CEO is to fly to New York City to address a group of Wall Street analysts. Newcome is happy to discover that AMC provides her, and other senior management, with a company jet to attend such meetings. At the opening of the meeting, Newcome is surprised to hear that most of the analysts are extremely interested in learning about AMC's corporate governance system. One analyst indicates that he has studied several of AMC's competitors and found that they share a set of critical and core attributes. The analyst goes on to note that, like its competitors, AMC has included in its corporate governance system the following attributes: (a) the rights of shareholders and other core stakeholders are clearly delineated; (b) there is complete transparency and accuracy in disclosures regarding operations, performance, risk, and financial position, and identifiable and measurable accountabilities for the performance of responsibilities are in place. The analyst also says that to verify that the board is meeting its major objectives, he has looked at AMC’s conflicts of interest and has one more area to review. Newcome then asks the analyst why his corporate governance evaluation of AMC is so important. The analyst responds by saying that his decision whether to invest in AMC and ultimately the long run performance of the company are dependent on the quality of AMC’s managers’ decisions and the skills they use in applying sound management practices. Closing the meeting, Newcome is delayed by on analyst who complains about the difficulties of flying these days and he has to get to the airport hours ahead of time. The analyst goes on to say that he reviewed AMC regulatory filings and was happy to see that the company does not spend money on frivolous perquisites like executive jets. Question: Which of the following would best complete the objectives of corporate governance for the CEO?
选项
A.Clearly defining governance responsibilities for both managers and directors
B.Evaluating the quality of corporate governance of a company prior to investing in or working for it.
C.Establishing clear lines of responsibility and a strong system of accountability and performance measurement in all phases of a company’s operations.
D.Ensuring that assets of the company are used efficiently and productively and in the best interests of investors and stakeholders
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标准答案
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思路分析
First, let’s restate the scenario in our own words to ensure we’re evaluating the options against the intended goals of corporate governance for a publicly traded company.
Option 1: Clearly defining governance responsibilities for both managers and directors. This is important, because clarity of roles helps prevent overlaps and gaps, but on its own it doesn’t guarantee performance measurement or accountability across all phases of operations. It’s a necessary piece, yet incomplete as a sole objective.
Option 2: ......Login to view full explanation登录即可查看完整答案
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类似问题
Regarding corporate governance, select the correct statement
Background: Shelley Newcome is the new CEO for a publicly traded financial services company, Asset Management Co. (AMC). Newcome is new to the corporate governance requirements of a publicly traded company; she previously worked for a family office that invested in private equity. At her first board meeting, the company's first in six months, she asks a director what the objectives of corporate governance should be. The director tells her that the most important objective he can think of is to eliminate or mitigate conflicts of interest among stakeholders. One of Newcome's first steps as CEO is to fly to New York City to address a group of Wall Street analysts. Newcome is happy to discover that AMC provides her, and other senior management, with a company jet to attend such meetings. At the opening of the meeting, Newcome is surprised to hear that most of the analysts are extremely interested in learning about AMC's corporate governance system. One analyst indicates that he has studied several of AMC's competitors and found that they share a set of critical and core attributes. The analyst goes on to note that, like its competitors, AMC has included in its corporate governance system the following attributes: (a) the rights of shareholders and other core stakeholders are clearly delineated; (b) there is complete transparency and accuracy in disclosures regarding operations, performance, risk, and financial position, and identifiable and measurable accountabilities for the performance of responsibilities are in place. The analyst also says that to verify that the board is meeting its major objectives, he has looked at AMC’s conflicts of interest and has one more area to review. Newcome then asks the analyst why his corporate governance evaluation of AMC is so important. The analyst responds by saying that his decision whether to invest in AMC and ultimately the long run performance of the company are dependent on the quality of AMC’s managers’ decisions and the skills they use in applying sound management practices. Closing the meeting, Newcome is delayed by on analyst who complains about the difficulties of flying these days and he has to get to the airport hours ahead of time. The analyst goes on to say that he reviewed AMC regulatory filings and was happy to see that the company does not spend money on frivolous perquisites like executive jets. Question: Which of the following is a core attribute that the Wall Street analyst left out of his analysis of AMC?
Background: Shelley Newcome is the new CEO for a publicly traded financial services company, Asset Management Co. (AMC). Newcome is new to the corporate governance requirements of a publicly traded company; she previously worked for a family office that invested in private equity. At her first board meeting, the company's first in six months, she asks a director what the objectives of corporate governance should be. The director tells her that the most important objective he can think of is to eliminate or mitigate conflicts of interest among stakeholders. One of Newcome's first steps as CEO is to fly to New York City to address a group of Wall Street analysts. Newcome is happy to discover that AMC provides her, and other senior management, with a company jet to attend such meetings. At the opening of the meeting, Newcome is surprised to hear that most of the analysts are extremely interested in learning about AMC's corporate governance system. One analyst indicates that he has studied several of AMC's competitors and found that they share a set of critical and core attributes. The analyst goes on to note that, like its competitors, AMC has included in its corporate governance system the following attributes: (a) the rights of shareholders and other core stakeholders are clearly delineated; (b) there is complete transparency and accuracy in disclosures regarding operations, performance, risk, and financial position, and identifiable and measurable accountabilities for the performance of responsibilities are in place. The analyst also says that to verify that the board is meeting its major objectives, he has looked at AMC’s conflicts of interest and has one more area to review. Newcome then asks the analyst why his corporate governance evaluation of AMC is so important. The analyst responds by saying that his decision whether to invest in AMC and ultimately the long run performance of the company are dependent on the quality of AMC’s managers’ decisions and the skills they use in applying sound management practices. Closing the meeting, Newcome is delayed by on analyst who complains about the difficulties of flying these days and he has to get to the airport hours ahead of time. The analyst goes on to say that he reviewed AMC regulatory filings and was happy to see that the company does not spend money on frivolous perquisites like executive jets. Question: Which of the following is an example of a corporate governance responsibility that AMCs board of directors has failed to meet?
Background: Shelley Newcome is the new CEO for a publicly traded financial services company, Asset Management Co. (AMC). Newcome is new to the corporate governance requirements of a publicly traded company; she previously worked for a family office that invested in private equity. At her first board meeting, the company's first in six months, she asks a director what the objectives of corporate governance should be. The director tells her that the most important objective he can think of is to eliminate or mitigate conflicts of interest among stakeholders. One of Newcome's first steps as CEO is to fly to New York City to address a group of Wall Street analysts. Newcome is happy to discover that AMC provides her, and other senior management, with a company jet to attend such meetings. At the opening of the meeting, Newcome is surprised to hear that most of the analysts are extremely interested in learning about AMC's corporate governance system. One analyst indicates that he has studied several of AMC's competitors and found that they share a set of critical and core attributes. The analyst goes on to note that, like its competitors, AMC has included in its corporate governance system the following attributes: (a) the rights of shareholders and other core stakeholders are clearly delineated; (b) there is complete transparency and accuracy in disclosures regarding operations, performance, risk, and financial position, and identifiable and measurable accountabilities for the performance of responsibilities are in place. The analyst also says that to verify that the board is meeting its major objectives, he has looked at AMC’s conflicts of interest and has one more area to review. Newcome then asks the analyst why his corporate governance evaluation of AMC is so important. The analyst responds by saying that his decision whether to invest in AMC and ultimately the long run performance of the company are dependent on the quality of AMC’s managers’ decisions and the skills they use in applying sound management practices. Closing the meeting, Newcome is delayed by on analyst who complains about the difficulties of flying these days and he has to get to the airport hours ahead of time. The analyst goes on to say that he reviewed AMC regulatory filings and was happy to see that the company does not spend money on frivolous perquisites like executive jets. Question: On the basis of the Wall Street analyst’s comments about AMC’s corporate governance system, which of the following would be most effective for AMC to attract investors’ interest?
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