- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 3. Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits
- Subject 2. Corporate Governance Mechanisms
CFA Practice Question
Which one of the following is least likely to be an ethical action by board members?
A. Aligning their interests to those of shareholders (for example, by being investors themselves).
B. Avoiding conflicts of interest with their positions as board members.
C. Having strong connections with the governments in the countries the company operates in.
Explanation: This might involve some kind of political favor that would not necessarily benefit the long-term interests of shareholders.
User Contributed Comments 2
User | Comment |
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kritan | it might involve political favours, or it might not. absolute nonsense question. |
ldfrench | Political favors are okay if you are the Governor of Illinois though. |