examquestionsforcfaprepfrom.doc

Exam questions for CFA? Prep from Kaplan Schweser’s CFA study curriculum linked to Ross, Westerfield, and Jordan Fundamentals of Corporate Finance, 9e Practice Questions for the CFA? Exams have been provided by Kaplan Schweser, a global leader in online, in-class, and self-study CFA education. Learn more at Note: These questions were selected by the authors as relevant to the chapter material. Because Schweser’s material is delivered in an online format, it exports in a way that selects “A” as the correct answer for every problem, so you may need to modify the order of the answers depending on how you use the material. Chapter 1: Introduction to Corporate Finance 1.) Question ID#: 97622 agency relationships / corp governance Which of the following statements regarding corporate governance practices is least accurate? A) Corporate governance is not as important for firms with largely dispersed minority shareholders. B) Good corporate governance practices ensure that the firm’s financial and operating activities are reported to shareholders in a verifiable manner. C) Corporate governance is the system of internal controls/procedures by which firms are managed. The correct answer was A. Good corporate governance practices are extremely important in the case of firms with largely dispersed minority shareholders. Both remaining statements are accurate. 2.) Question ID#: 97621 agency relationships / corp governance Corporate governance is the set of internal controls, processes and procedures defining how a firm is managed. Which of the following statements concerning corporate governance is least accurate? A) Good corporate governance means that the board can work effectively with management. B) Good corporate governance dictates that the firm’s financial, operating and governance activities are reported to stakeholders in a fair, accurate and timely manner. C) Corporate governance defines the appropriate rights, roles and