A company's board of directors should, at a minimum, adopt the provisions of SOX. Discuss three of the six established best practices that a board should also follow
The roles of CEO and board chairman should be separate to facilitate discussions without management being present.
The board should establish a code of ethical standards from which management and staff will take direction. At a minimum it should address outside employment conflicts, gifts that could be considered bribery, falsification of data, conflicts of interest, political contributions, confidentiality, honesty and membership on external boards.
Establishment of an independent audit committee that selects the independent auditor.
Compensation committees that evaluate management compensation schemes to ensure they create the desired incentives.
Nominating committees with a plan to maintain a fully staffed, capable board of directors. The committee must recognize the need for independent directors and have criteria for determining independence.
All committees of the board should have access to attorneys and consultants other than the corporation's normal counsel and consultants.
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When used appropriately, which power can motivate, but if used unethically or distributed based on favoritism, can lead to demoralization and apathy?
A. referent power B. expert power C. reward power D. legitimate power
Situational ethics encourages people to ________
A) create a personal code of ethics based on their family background B) make ethical decisions based upon the circumstances of a particular experience, not upon fixed laws C) evaluate how they can best meet their individual needs in any particular situation D) apply the basic values shared by all major religious traditions to a variety of situations E) have no interest in the moral consequences of their actions
The necessary sample size to determine the confidence interval for the mean will double when the required margin of error is reduced by half
Indicate whether the statement is true or false
Pine Creek Company is owned equally by Bob and his sister Samantha, each of whom own 1,000 shares in the company. On December 31, 20X3, Pine Creek redeemed 200 of Samantha's shares for $5,000,000 in a transaction treated as an exchange by Samantha. Pine Creek has current E&P of $10,000,000 and accumulated E&P of $30,000,000 (computed without regard to the stock redemption). Assuming Pine Creek did not make any dividend distributions during 20X3, by what amount does the company reduce its E&P because of the redemption?
What will be an ideal response?