CFA Practice Question

There are 233 practice questions for this study session.

CFA Practice Question

Which of the following statements indicate a problem that an effective corporate governance system would mitigate or eliminate?
A. To maintain a certain level of continuity and skill on the board, no board member should be removed from the board under any circumstances.
B. A majority of the board is independent.
C. The board reports on their activities to shareholders once a year.
Explanation: Shareholders should be able to vote to remove a board member under certain circumstances. Besides, corporate governance best practices generally support the annual election of board members as being in the best interest of investors.

User Contributed Comments 5

User Comment
bahodir A question about answer B.
Shouldn't all of the board be independent?
addidas No. That's not required.
superjam its not a problem in any case
Cesarnew 3/4 should be independent
dream007 Didn't really understand the question but I picked A because it was the odd one out of all the options...:)
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