标题: Reading 48: The Corporate ... LOS c习题精选 [打印本页]
作者: honeycfa 时间: 2010-4-21 13:33 标题: [2010]session 11-Reading 48: The Corporate ... LOS c习题精选
LOS c: Describe board independence and explain the importance of independent board members in corporate governance.
Which of the following statements related to corporate governance is least accurate?
|
A) |
Board members should not have any material relationships with the firm’s advisers, auditors, and their families. | |
|
B) |
It is desirable for the chairman of the board to be the firm’s current CEO or former CEO. | |
|
C) |
It is desirable for board members to have board experience with other boards. | |
The willingness of independent board members to express opinions that are not aligned with managements’ may be impaired when the chairman is the firm’s current CEO or a former CEO.
作者: honeycfa 时间: 2010-4-21 13:34
There are a lot of issues to consider in determining board independence. What would be the best definition of true “independence”? Independence, as it relates to board members, refers to:
|
A) |
the degree to which these persons are not biased or otherwise controlled by firm management or the outside audit group. | |
|
B) |
avoidance of material conflicts of interest. | |
|
C) |
the degree to which these persons are not biased or otherwise controlled by firm management or other groups which may have some degree of control over management. | |
Avoiding material conflicts of interest is important, but this is not a true definition of independence. Independent board members should be independent from the outside audit group, but this is not part of the actual definition. Benefiting management interests should not be a board priority.
| 欢迎光临 CFA论坛 (http://forum.theanalystspace.com/) |
Powered by Discuz! 7.2 |