Quiz Ch 12 – T/F Shareholder Oversight and Independent Auditors
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
True or false: Shareholders often turn to independent auditors to assess their managers’ performance.
True or false: Shareholders often turn to independent auditors to assess their managers’ performance.
True or false: Small shareholders typically initiate proxy contests when a company is underperforming.
True or false: Typically, top management employs spreadsheet programs to assess all capital budgeting projects before reaching decisions.
True or false: Stock option grants are deemed more suitable as compensation for lower-level managers compared to their appropriateness for higher-level managers.
True or false: Tax advantages in the United States encourage the use of stock option grants, rather than salary increments, as a means to reward good performance by CEOs in large firms.
True or false: If Walker Publishing Company is contemplating the release of a new finance text with projected revenues that include some revenue redirected from another of Walker’s books, the lost sales on the older book should be regarded as a sunk cost and therefore not factored into the analysis for the new book.
Which group or entities hold the primary responsibility for monitoring a firm?
Which of the subsequent principles is TRUE in the context of capital budgeting analysis?
How is the average length of unemployment categorized in economic indicators?