Institutional investors are sometimes referred to as:
Wall Street investors
In response to concerns about the lack of transparency in financial accounting, Congress passed a new law called the:
In 2010, median compensation for directors at the largest U.S. corporations was (rounded to the nearest $10):
The main reason that American executives are paid so much is:
Ans: Pay is set by the Compensation Committee of the board, largely comprised of other CEOs who have an interest in pushing compensation up
The mission of the Securities and Exchange Commission (SEC) is to:
Protect Shareholders’ rights may sure that stock markets are run fairly
Which if the following is not a legal right of stockholders?
To vote on who will become chief executive officer (CEO).
Corporate governance involves the exercise of control over a company’s:
How are directors (members of corporate boards) selected?
Shareholders elect the directors from a list candidates
The directors of a company are a central factor in corporate governance because they:
Exercise warm or legal authority over company policy
The Securities and Exchange Commission outlaws:
Any manipulative or deceptive device used to trade stocks
Which of the following is not a function of board committees?
The finance committee words closely with the human resources department to find employee salaries.
The board committee that administers and approves salaries and benefits of high-level managers in a company is called the:
Which of the following arguments opposes the idea of high executive pay?
High salaries divert resources that could be used to invest in the business
The activism of institutional investors in other countries has been spearheaded by:
U.S.-based pensions and mutual funds that in recent years acquired large stakes in foreign countries
Which of the following is not an argument for high executive compensation?
Inflated executive pay helps U.S. firms compete with foreign rivals
The law requiring that toys and infant products be tested before sale is called the:
Consumer Product Safety Improvement Act
An identifying marker placed on a user’s computer hard drive during visits in order to identify the user during each subsequent visit and to build profiles of their behavior over time is called a:
In some cases, businesses have banded together to agree on how they will treat their customers. This is called:
Voluntary industry codes of conduct
The act that requires lenders to inform borrowers of the annual rate of interest to be charged, plus related fees and services charges is called:
The Truth in Lending Act
Which of the following limits the collection of information online from and about children under the age of 13?
The Children's Online Privacy Protection Act
In the United States, which of the following agencies enforces the laws prohibiting deceptive advertising?
Federal Trade Commission
Manufacturers making false or misleading claims about a competitor’s product is:
Illegal and unethical
When businesses adopt voluntary policies for protecting the privacy of individuals’ information disclosed during electronic transactions, this is called:
A prime social responsibility of business is to safeguard consumers:
While continuing to supply them with goods and services they want.
Online shoppers have always been concerned that:
Information they reveal in the course of a sales transaction might be misused.
Advertising that is targeted to particular customers, based on their observed online behavior, is called:
Consumers have become more dependent on businesses for product quality because:
The complexity of products makes choices complicated for customers
Which organization brings together 300 nonprofit groups to espouse the consumer viewpoint?
Consumer Federation of America
Which of the following is not a goal of consumer protection laws?
Facilitate consumers’ getting extended credit when making purchases
One alternative to product liability lawsuits is called:
Alternative dispute resolution