Because of Accounting Scandals, Several Methods Have Been Developed to Deal

question 13

Multiple Choice

Because of accounting scandals, several methods have been developed to deal with the issues of corporate governance and include all the following EXCEPT _____.

• A) The Board must select only SEC approved consultants
• B) Chairman of the Board position should be split from the CEO position
• C) The majority of members on the Board of Directors should be independent directors
• D) The Board of Directors must disclose whether it has adopted a code of ethics for the CEO and senior financial officers

Acknowledge the variability and unrepeatability issues in simulations that rely on random numbers.

Understand different types of simulation, including Monte Carlo, and their characteristics.

Recognize the advantages and disadvantages of simulation in solving complex problems.

Understand the application areas of simulation in business and operations.

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Definitions:

Mortgagor

A mortgagor is an individual or entity who borrows money to purchase property and pledges that property as security for the loan.

Mortgagee's Interest

The financial interest a lender has in the property serving as collateral for a loan until the mortgage is fully repaid.

Mortgagee's Claim

A claim made by the lender or mortgage holder for payment of the outstanding loan balance from the proceeds of a foreclosure sale.

Due On Sale Clause

A provision in a mortgage allowing the lender to demand full repayment if the property is sold.