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:

United States Postal Service

The federal agency that provides postal and mail services in the United States, overseeing the delivery and collection of mail and parcels.

Consumer Protection

Laws and regulations designed to ensure the rights of consumers are protected and to ensure fair trade, competition, and accurate information in the marketplace.

Federal Trade Commission

A U.S. federal agency tasked with protecting consumers and promoting competition by preventing anticompetitive, deceptive, and unfair business practices.

Consumer Movement

A social and economic movement that promotes the rights and powers of consumers in relation to the sale and purchase of goods and services.