Research, Such as the Study by Fich and Shivdasani, Has

question 1

Multiple Choice

Research, such as the study by Fich and Shivdasani, has shown that companies that have over half of the outside directors sitting on three or more boards have which of the following?

• A) Better financial performance but not better governance
• B) Better governance but not better financial performance
• C) Better governance and better financial performance
• D) Neither better governance nor better financial performance

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Definitions:

Credit

The provision of resources (such as money) by one party to another party where the second party does not reimburse the first party immediately, but promises either to repay or return those resources at a later date.

Transposition Error

A common accounting mistake where numbers are mistakenly reordered, leading to inaccurate data entry.

Trial Balance

A worksheet used in accounting that compiles all ledger balances into matching total amounts in debit and credit columns.

Debit Totals

An aggregate amount of all debits recorded in an accounting period, indicating resources used or expenses.