Under TARP Provisions

question 68

Multiple Choice

Under TARP provisions:

• A) shareholders' approval on compensation packages recommended by the company's compensation committee is binding.
• B) if the board disregards the shareholders' vote on a recommended compensation package, the board is automatically in breach of its fiduciary duties to the company and the company's owners.
• C) the shareholders have no right to vote on compensation, so their approval or disapproval of the compensation committee's recommendation is not considered.
• D) shareholders have a nonbinding vote on any compensation plan recommended by the board of directors.

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Definitions:

Normative Ethics

A branch of ethics concerned with establishing how things should or ought to be, focusing on the establishment of moral standards that guide actions.

Ethical Relativism

The perspective that moral standards vary across cultures and individuals, and that there are no universal ethical truths.

Socially Defined Behaviour

Actions or behaviors that are shaped, influenced, or regulated by the societal norms and values of a community.

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