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Question 1

Institutional investors are sometimes referred to as:

Wall Street investors

Question 2

In response to concerns about the lack of transparency in financial accounting, Congress passed a new law called the:

Sarbanes-Oxley Act

Question 3

In 2010, median compensation for directors at the largest U.S. corporations was (rounded to the nearest $10):


Question 4

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

Question 5

The mission of the Securities and Exchange Commission (SEC) is to:

Protect Shareholders’ rights may sure that stock markets are run fairly

Question 6

Which if the following is not a legal right of stockholders?

To vote on who will become chief executive officer (CEO).

Question 7

Corporate governance involves the exercise of control over a company’s:

Entire operations

Question 8

How are directors (members of corporate boards) selected?

Shareholders elect the directors from a list candidates

Question 9

The directors of a company are a central factor in corporate governance because they:

Exercise warm or legal authority over company policy

Question 10

The Securities and Exchange Commission outlaws:

Any manipulative or deceptive device used to trade stocks

Question 11

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.

Question 12

The board committee that administers and approves salaries and benefits of high-level managers in a company is called the:

Compensation committee

Question 13

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

Question 14

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

Question 15

Which of the following is not an argument for high executive compensation?

Inflated executive pay helps U.S. firms compete with foreign rivals

Question 16

The law requiring that toys and infant products be tested before sale is called the:

Consumer Product Safety Improvement Act

Question 17

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:


Question 18

In some cases, businesses have banded together to agree on how they will treat their customers. This is called:

Voluntary industry codes of conduct

Question 19

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

Question 20

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

Question 21

In the United States, which of the following agencies enforces the laws prohibiting deceptive advertising?

Federal Trade Commission

Question 22

Manufacturers making false or misleading claims about a competitor’s product is:

Illegal and unethical

Question 23

When businesses adopt voluntary policies for protecting the privacy of individuals’ information disclosed during electronic transactions, this is called:

Industrial self-regulation

Question 24

A prime social responsibility of business is to safeguard consumers:

While continuing to supply them with goods and services they want.

Question 25

Online shoppers have always been concerned that:

Information they reveal in the course of a sales transaction might be misused.

Question 26

Advertising that is targeted to particular customers, based on their observed online behavior, is called:

Behavioral advertising

Question 27

Consumers have become more dependent on businesses for product quality because:

The complexity of products makes choices complicated for customers

Question 28

Which organization brings together 300 nonprofit groups to espouse the consumer viewpoint?

Consumer Federation of America

Question 29

Which of the following is not a goal of consumer protection laws?

Facilitate consumers’ getting extended credit when making purchases

Question 30

One alternative to product liability lawsuits is called:

Alternative dispute resolution


Available solutions

    Question 1 Institutional investors are sometimes referred to as: Wall Street investors Question 2 In response to concerns about the lack of transparency in financial accounting, Congress passed a new law called the: Sarbanes

    Submitted on: 01 Dec, 2015 10:19:02 This tutorial has not been purchased yet .