Parties having the tendency to take on risks because the cost is not felt by

Parties having the tendency to take on risks because

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Parties having the tendency to take on risks because the cost is not felt by the party taking the risk Question 1 The principal-agent problem can result in which of the following negative outcomes? A potential for moral hazard Question 3 What form of compensation structure should be expected to reduce agency conflict? Compensation in the form of profit sharing Question 4 Performance-related pay will tend to the principal agent problem. Solution: reduce/decrease Question 6 Which is  not  an example of the principal-agent problem? The relationship between the CEO and managers Question 8 What item below is a potential outcome when a CEO is acting in the best interest of shareholders? CEO maintaining low amounts of cash which will provide dependence on capital markets Question 1 Sarbanes-Oxley applies to all  companies and acts to improve transparency and  accountability. decrease public
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Question 2 Which characteristics are  not  necessary for a Board member to be considered independent? Not currently employed at your firm Question 3 If a CEO willfully submits a wrong certification they can face all of the following except? Fine can be up to $1 million Question 4 Which is  not  a common Board committee? None of the above Question 5 Which of the following is least likely to be a governance issue?  Community relations Debt contract negotiations Question 4 Which is  NOT  an outcome of Sarbanes Oxley? Top management is no longer required to certify information Question 5 An independent audit committee will   a corporate governance policy. Question 6 Which is  not  allowed an exemption from registration requirements? Offerings to public at large Question 7 Which is  not  an issue linked to Dodd-Frank Reform? Public policy consultants Question 8 Which of the following are  not  tasked to the new Consumer Financial Protection Bureau (CFPB)? Reducing incentives for bankers that trade in stocks improve
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