All of the following practices constitute good corporate governance, EXCEPT:()
A. the firm’s financial, operating, and governance activities are reported to shareholders in a fair, accurate, and timely manner, and management acts independent of the board of directors.
B. the firm’s financial, operating, and governance activities are reported to shareholders in a fair, accurate, and timely manner, and the board of directors protects shareholder interests.
C. there are proper procedures and controls coveting management’s day-to-day operations and the firm acts lawfully in dealings with shareholders.
Which of the following statement concerning about the arithmetic mean is FALSE()
A. It is less than or equal to the geometric mean.
B. It is a commonly used measure of central tendency.
C. It is equal to the median and mode in symmetric distributions.
One of the key differences between the decisions to add labor or capital to the production process is that the returns to labor:()
A. are relatively immediate, but those to capital may be years into the future so they must be evaluated as future values.
B. must be projected into the future and evaluated as present values, while returns to capital can be evaluated immediately based upon market interest rates.
C. are relatively immediate, but those to capital may be years into the future so they must be evaluated as present values.
Joe Robison, CFA is an investment manager with full responsibility for the Gemstone Corporation relationship. During the past 12 months Joe has used 75% of the client brokerage of Gemstone to execute the Company’s stock trades and to directly assist in the investment decision process of Gemstone: Joe has independently obtained best price and execution for all of Gemstone’s stock trades. The remaining 25% of the client brokerage has been used to purchase bookshelves and computer chairs for Joe’s investment firm’s library. Which of the following is the most accurate statement pertaining to Joe’s use of the above soft dollars ()
A. Joe has properly used Gemstone’s client brokerage since he obtained best price and execution for all of the stock trades.
B. The 75 % of the client brokerage used by Joe was in full compliance with the Soft Dollar standard. The remaining 25% use of Gemstone’s client brokerage should be disallowed since it did not directly assist Joe in the investment decision process of Gemstone.
C. Joe’s use of soft dollars for Gemstone was proper since the client brokerage is the property of the investment firm and can be allocated per the direction of the investment manager.