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1

If a Board of Directors has an outside director as Chair, this director has the responsibility to ensure that the nominating committee for Board membership finds appropriate people for membership.
A)True
B)False
2

Selection of the CEO is a major responsibility of the Board of Directors.
A)True
B)False
3

In most of the larger U.S. corporations, the CEO is also the Chair of the Board of Directors.
A)True
B)False
4

The compensation of CEO's in Europe is higher than the pay of top executives in the U.S.
A)True
B)False
5

The members of Boards of Directors in the U.S. are accountable to the stockholders of the corporation.
A)True
B)False
6

The overall control of the activities of a corporation is known as:
A)corporate governance.
B)corporate charter.
C)CalPERS.
D)all of the above
7

The legal authority of corporate managers and directors to function in conformity to corporate governance is known as:
A)the CalPERS guidelines.
B)the corporate charter.
C)compensation.
D)government.
8

On a Board of Directors, managers of the corporation who sit on the Board are called _____ directors, while Board members who do not work for the corporation are called _____ directors.
A)outside; inside
B)inside; outside
C)lateral; vertical
D)horizontal; vertical
9

In German companies, where there is a supervisory board and also a lower management board, this is called:
A)the CalPERS effect.
B)disparate treatment.
C)disparate effect.
D)two-tier boards.
10

According to the Business Roundtable, corporate Boards of Directors should:
A)review the major strategies and plans of the corporation.
B)give advice to top management.
C)select the CEO.
D)all of the above
11

Which of the following is a guideline from CalPERS for corporate boards?
A)Independent directors should meet periodically without the CEO being present.
B)No director can be a consultant to the company.
C)The board should review the CEO's performance on a regular basis.
D)All of the above.
12

Which of the following is a guideline from CalPERS for corporate boards?
A)The board should consider tenure rules.
B)The board should consider having different people in the position of CEO and Chair of the Board.
C)The board should set guidelines on the number of other boards on which a director may sit.
D)All of the above
13

Which of the following would be an effective criterion for boards to use in evaluating the performance of the CEO?
A)The board should develop a clear job description of the CEO's position.
B)The board should evaluate the performance of the CEO annually.
C)The performance of the CEO should be evaluated against the goals set for the company.
D)All of the above
14

Which of the following would be a good way for a board to evaluate its own performance?
A)A survey of outside directors
B)The full board can discuss specific issues
C)An outside consultant can conduct a survey
D)All of the above
15

Which of the following is an important area for a board's self-evaluation?
A)The quality of the board's discussions
B)The board's evaluations of the CEO
C)The compensation of the directors
D)All of the above





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