In 2016,John Stumpf,CEO of Wells Fargo,was Forced to Resign After

question 11

Multiple Choice

In 2016,John Stumpf,CEO of Wells Fargo,was forced to resign after both stakeholder and government scrutiny of the practices of the firm.Firm management had instituted very aggressive sales goals for employees,leading employees to create sham accounts using the names and money of the real customers of the bank.This is an example of ________ corporate governance.

• A) sound
• B) controlled
• C) flawed
• D) guided

---

Definitions:

Public Trading Companies

Corporations whose shares are listed and traded on public stock exchanges, making their ownership publicly accessible.

Adequate Capital

Sufficient funds required by a business to finance its operations and meet its obligations without facing financial distress.

Bank Run

A situation where a large number of a bank's customers try to withdraw their deposits simultaneously because they believe the bank might fail.

Canadian Deposit Insurance Corporation (CDIC)

A federal crown corporation in Canada that provides deposit insurance to protect the deposits made by consumers in member financial institutions in case of their failure.