Issues Involved Regarding How a Board of Directors Can Be
Issues involved regarding how a board of directors can be established so as to be most effective include:
a. The insider/outsider mix.
b. CEO duality.
c. Board Interlocks.
d. The Role of Boards of Directors.
e. All of the above.
Boards of directors perform all of the following except:
c. Resource acquisition functions.
d. A through C above.
e. Day to day operations.
Which of the following make up a governance package?
a. Internal Mechanisms + External Mechanisms.
b. Carrots to motivate managers such as stock options.
c. Sticks that may result in CEO and top management team turnover.
d. The Market for Corporate Control.
e. The Market for Private Equity.
Three decades of privatization suggest all of the following except:
a. Privatization to insiders helps improve the performance of small firms.
b. In large corporations privatization to insiders, without external governance pressures, is hardly conducive for needed restructuring.
c. Outside ownership and control, preferably by blockholders, funds, foreigners, and/ or banks, are more likely to facilitate restructuring.
d. Such outside ownership and control does not happen frequently because incumbent managers do not necessarily welcome such outside "intrusion."
e. When outside investors such as institutional investors do come in, they fail to assert their power.