Which of the Following Was Not a Finding of the Cadbury

question 42

Multiple Choice

Which of the following was not a finding of the Cadbury Commission?

• A) Audit and compensation committees should be made up entirely of independent directors or, at least, have a majority of them.
• B) Auditors should be rotated, and there should be fuller disclosure of non-audit work.
• C) The CEO should not be chairman of the board, and at the very least there should be a lead independent director with similar agenda-setting powers.
• D) The CEO and the CFO should personally attest to the accuracy of the financial statements presented to shareholders.

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Definitions:

External Locus

A belief system where individuals perceive their successes or failures as being influenced by external forces or events beyond their control.

Fatalistic Attitude

A mindset or belief that events are predetermined to happen and cannot be changed by the individual, leading to a sense of powerlessness.

Good Luck

A favorable or beneficial circumstance that happens by chance, often considered an element of success not attributable to one's actions.

Halo Effect

A cognitive bias where the perception of one positive quality in a person leads to the unjustified extension of positive evaluation to other qualities.