Question: Which of the following statements is not true about stockholders?

Answer: They own equal shares of company assets.

Question: Which of the following is not true about institutional investors?

Answer: The proportion of institutional ownership of stock in the U.S. has declined slowly since the 1960s.

Question: Institutional investors are sometimes referred to as:

Answer: Wall Street investors.

Question: In 2008 and early 2009, share values declined sharply as the global economy fell into a severe recession. This type of stock market is referred to as a:

Answer: Bear market.

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

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

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

Answer: Entire operations.

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

Answer: Exercise formal legal authority over company policy.

Question: The paramount duty of the board of directors of a public corporation is to:

Answer: Select and oversee competent and ethical management to run the company.

Question: Which of the following is true about corporate boards?

Answer: Corporate boards average 12 members.

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

Answer: $212,510.