CompuDream Ltd

question 28

Multiple Choice

CompuDream Ltd. has been led by its imaginative founder, Frank Foresee, for the past 15 years. Frank is thought to be one of the top corporate leaders of the day. Unfortunately, Frank has just discovered that he has terminal cancer. Does this information have to be disclosed?

• A) The information does not have to be disclosed until Frank dies.
• B) The information does not have to be disclosed until Frank is unable to make further contributions to the company.
• C) The information has to be disclosed fairly soon.
• D) The information has to be disclosed in the annual report.
• E) None of the responses are correct.

Learn the mechanisms through which shareholders can influence corporate governance, including voting rights and special meetings.

Understand the roles and distinctions between different types of directors and officers in a corporation.

Comprehend the process of director selection and the time frame for their service.

Describe how the number of corporate directors is determined and the significance of affiliated and unaffiliated directors.

---

Definitions:

Government Spending

Expenditures by government agencies on goods and services that influence the economy, including investments, social services, and defense.

Reserve Requirements

The minimum amount of funds that a bank is required to hold in reserve, determined by central banking authorities, to ensure that the institution remains liquid.

Monetary Control

Monetary Control involves the regulation of the money supply and interest rates by central banks to manage economic stability and growth.

Open Market Operations

The buying and selling of government securities by a central bank in order to control the money supply and influence interest rates.