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

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Definitions:

Fixed Assets

Long-term tangible assets that are used in the operating activities of a business and are not expected to be consumed or converted into cash in the short term.

Equity Shares

Shares of stock that represent ownership in a company, entitling the shareholder to a portion of the corporation's profits and assets.

Rights Offering

A method by which a company raises additional capital by giving existing shareholders the right to purchase additional shares at a predetermined price, often at a discount to the market price.

Market Price

The current trading rate for services or assets in the market.