All of the Following Are Principles of Good Organizational Governance

question 4

Multiple Choice

All of the following are principles of good organizational governance, as established by BusinessWeek, EXCEPT

• A) each director attends at least 75 percent of all meetings.
• B) the audit, compensation and nominating committees are made up solely of outside directors.
• C) each director owns a large equity stake in the company.
• D) at least three directors are current or former company executives.
• E) the CEO is not also the Chairperson of the Board.

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Definitions:

Probability Distribution

A probability distribution is a mathematical function that provides the probabilities of occurrence of different possible outcomes in an experiment.

Variability

The extent to which data points in a set differ from each other and from the mean of the set; a measure of dispersion or volatility.

Standard Deviation

A measure of the dispersion or variability of a set of data points around the mean, commonly used in finance to represent the volatility or risk associated with a particular investment.

Expected Return

A measure of the average likely profit or loss on an investment considering past performance or future forecasts.