A little spoiler. It is in 2006 test CFAI test. So I studied this. You will get it right now.
Which is not a requirement of an effective corp governance policy: A. Defining the rights of shareholders relative to bondholders, suppliers, customers, and employees. B. Outlining specific responsibilities toward stakeholders that managers and directors must fulfill. C. Separating the roles of chairman and chief executive officer. D. Specifying how mangers and directors will be held accountable for meeting their responsibilities.
A
C? - not required, but i think it’s best practice. man, i’m really bad at these.
I would say C as well… lets see if I can go 0/2
I think A. All of the others are strong corporate governance policies. A seems a little off-topic.
C
cfasf1, Chadtap, and NVC were correct. Separating the roles of CEO and Chairman are of best practices, but not required.
god i hate this wording - effective corp governance policy would seem to me to be saying what is required to be at highest level… so c would be in imo. a?
C. When i first saw this, it really pissed me off. I mean, first they tell us all about how it’s so important. Then they tick us by telling us it’s not required? Enjoy the power you have to make me miserable now, CFA people. I won’t be yours to kick around forever.
and protecting shareholder rights from suppliers seems kind of iffy, too.
if you remember these two you will get most of corp. gov. stuff correct: Corporate governance has two major objectives: 1.Eliminate or reduce conflicts of interest. (this covers a lot) 2.Use the company’s assets in a manner consistent with the best interests of investors and other stakeholders.