Sometimes you just need a break from the numbers. How is the L2 gang doing today?
Sunil Reddy is an analyst for Worldwide Financial Services. Reddy thinks that Worldwide’s procedures for analyzing companies for inclusion in client portfolios would be more robust if it included a review of the company’s board of directors. Reddy prepares a list of five items concerning the board of directors that analysts should assess: Item 1: Frequency of separate sessions for independent directors. Item 2: Use of independent legal counsel as opposed to company in-house counsel. Item 3: Composition of the nominating committee. Item 4: Composition of the compensation committee. Item 5: Whether the board has staggered or annual elections. Which of the items on Reddy’s list are attributes of a board of directors that are important for an analyst to assess? A) Items 1, 3, and 5 only. B) Items 2, 3, and 4 only. C) All five items.
I got fed up with this private equity BS and moved onto commodities to save my sanity. Will try and polish alts off tonight so I can spend the rest of the week with quant… no break from the numbers for me!! 
When I need some easy reading I turn to ethics (or just post more on AF!)
Gotta be C
Sounds like C to me!
count me in on the C-train
Hopefully finishing up Equity section by tomorrow. Porter’s five forces are giving me headache.
I got killed on porter, industry analysis and stuff… outright killed. Wish you ready my FBook status. lol
C it is.
Porter and industry analysis stuff are all qualitative and comprehension. Looks like there aren’t short cut here except keep doing problems.
Glad that we have the option “C: Any one is correct”. You select this, you feel happy about it that you got a Q right, but when you read the answer description you know that you chose this for an all-together wrong (contrarian) reason. haha - but a point is a point is a point! - i’ll take it on the real-exam.
Pre-offer defense mechanisms to avoid a hostile takeover include poison pills, poison puts, reincorporating in a state with restrictive takeover laws, staggered board elections, restricted voting rights, supermajority voting, fair price amendments, and golden parachutes. Post-offer defense mechanisms to avoid a hostile takeover include the “just say no” defense, litigation, greenmail, share repurchases, leveraged recapitalizations, the “crown jewel” defense, the “Pac man” defense, and finding a white knight or white squire.
That corporate governance question won’t be something that show up on the test I think, the questions in CFAI are wayyy harder than that