Corp Goverance Quiz a go go

CFA Level II
#1

OK, here’s one for you. I am concerned about mgmnt’s ability to receive excessive compensation, I’m worried about them taking too many risky off-balance sheet obligations, and I’m worried about them entering into bad, wealth-destroying transactions. I’m concerned about all these following risks except: 1) asset risk 2) liability risk 3) accounting risk 4) Strategic policy risk

#2

asset risk - Risk that they will use airplanes and stuff :-/

#3

A

#4

dude. you’re level 3. drop some knowledge on us. how do we pass this thing. what were you scoring on your schweser tests… COME ON!!! but to the question: i thought it was 2, liability risk.

#5

C nothing in there about misleading financial statements or incomplete financial data. off-balance sheet obs are an liability risk, not an accounting risk. I think. edit: liability risk, not asset risk in above explaination.

#6

…are you SUUUUURRRREEEEE???

#7

Try B.

#8

What? I’m level 3? How’d I get to be level 3 already without taking the level 2 exam?

#9

i’m sure.

#10

oh i said 2, but i meant b. i’m talking about comp sci kid.

#11

Bud Fox takes it. As he said, there’s nothing in there about incorrect, fraudulent, or late financial statements, i.e. accounting risk.

#12

crap. the 4th is Financial Disclosure risk and not accting risk.

#13

Smarshy Wrote: ------------------------------------------------------- > OK, here’s one for you. > > I am concerned about mgmnt’s ability to receive > excessive compensation. asset risk. I’m worried about them > taking too many risky off-balance sheet > obligations liability risk. and I’m worried about them entering > into bad, wealth-destroying transactions. > stratergic policy risk > I’m concerned about all these following risks > except: > > 1) asset risk > 2) liability risk > 3) accounting risk > 4) Strategic policy risk So only thing missing is accounting risk which is misstate FSA etc I think.

#14

i’m retarded. i read the question incorrectly. but i would have gotten it wrong anyway, so i’m doubly stupid.

#15

Well done Disptra for going the extra mile

#16

cfasf1 Wrote: ------------------------------------------------------- > i’m retarded. i read the question incorrectly. but > i would have gotten it wrong anyway, so i’m doubly > stupid. I made the same mistake, which is why I posted the question. So I’m retarded too. Want to trade helmets?

#17

Whats Asset Risk then?

#18

i actually thought asset risk is when you use corporate property :-/ i guess excsessive compensation falls there. At L3 we also get tested on corp gov but from other perspective! GL guys

#19

risk of mangers draining your assets (i.e high pay)

#20

lot of room on the short yellow bus to the testing site. hop on.