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1

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

Answer

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Question 2

5 out of 5 points

Correct

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

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Question 3

0 out of 5 points

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

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Question 4

5 out of 5 points

Correct

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

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Question 5

0 out of 5 points

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

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Question 6

5 out of 5 points

Correct

The activism of institutional investors in other
countries has been spearheaded by:

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Question 7

5 out of 5 points

Correct

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

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Question 8

0 out of 5 points

Which of the following is a key feature of
effective boards of directors?

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Question 9

0 out of 5 points

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

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Question 10

5 out of 5 points

Correct

A reason for institutions becoming more assertive
in promoting the interests of their member investors is:

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Question 11

5 out of 5 points

Correct

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

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Question 12

0 out of 5 points

Institutional investors are sometimes referred to
as:

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Question 13

5 out of 5 points

Correct

Which of the following is not a function of board
committees?

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Question 14

5 out of 5 points

Correct

How are directors (members of corporate boards)
selected?

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Question 15

5 out of 5 points

Correct

Which of the following arguments opposes the idea
of high executive pay?

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Question 16

5 out of 5 points

Correct

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

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Question 17

5 out of 5 points

Correct

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

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Question 18

5 out of 5 points

Correct

Online shoppers have always been concerned that:

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Question 19

5 out of 5 points

Correct

Which of the following limits the collection of
information online from and about children under the age of 13?

Answer

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Question 20

5 out of 5 points

Correct

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

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Question 21

5 out of 5 points

Correct

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:

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Question 22

5 out of 5 points

Correct

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:

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Question 23

0 out of 5 points

Under what legal doctrine does a firm bear legal
responsibility for injuries caused by something it made or sold, whether or
not it was negligent or breached a warranty?

Answer

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Question 24

5 out of 5 points

Correct

Businesses can take a number of measures to
respond voluntarily to consumer demands. Which of the following is an
example of such a measure?

Answer

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Question 25

0 out of 5 points

Under proposals to establish uniform federal
standards for determining liability:

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Question 26

5 out of 5 points

Correct

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

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Question 27

5 out of 5 points

Correct

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

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Question 28

5 out of 5 points

Correct

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

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Question 29

0 out of 5 points

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

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Question 30

5 out of 5 points

Correct

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

Answer