CFA Practice Question

CFA Practice Question

Which of the following is likely to be detrimental to good corporate governance of a firm?
A. The audit committee of the board is headed by the CFO.
B. The board members own equity of the firm.
C. The chairman of the board of directors does not work for the firm, or any of its clients or suppliers.
Explanation: Owning equity makes board members want the firm to do well. Independent directors are good for corporate governance. CFO heading the audit committee is less likely to make it independent.

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