Corporate Finance - Corporate Finance Section 1

Avatto>>CFA Level 1>>PRACTICE QUESTIONS>>Corporate Finance>>Corporate Finance Section 1

16. Which committee is responsible for a company’s code of ethics and conflict of interest policy?

  • Option : B
  • Explanation : The governance committee is responsible for a company’s code of ethics and conflict of interest policy.
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17. Which of the following is a mechanism to protect the rights of creditors?

  • Option : C
  • Explanation : Collateral to secure a debt is used to protect creditors.
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19. Which of the following committees is most likely responsible for establishing criteria for appointment of board of directors and search process?

  • Option : A
  • Explanation : The nomination committee establishes criteria for the board of directors and the search process.
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