Chapters 11 & 14
A reason for institutions becoming more executive in promoting the interests of their member investors is:
It is difficult for institutions to sell their holdings
• Institutional investors are sometimes referred to as:
Wall Street Investors
• Which of the following statements is not true with respect to acid rain?
o Acid rain occurs when carbon dioxide combines with water vapor in the atmosphere
• In the United States, the federal government regulates which of the following major areas of environmental protection?
o Air o Water o Land o All the above
• Which of the following is most advanced stage of corporate environmental responsibility?
o Clean technology stage
• Which of the following is true about corporate boards?
o Corporate boards average 12 members
• Which of the following is not a possible cost of environmental regulation?
o Corporate restructuring
• Investors may receive an economic benefits from the ownership of stock by receiving:
o Dividends o Capital gains o Both B and C, not A
• Being able to continue their activities indefinitely, without altering the carrying capacity of the earth's ecosystem, is a characteristic of:
o Ecologically sustainable organizations
• Which country has made the greatest progress in reducing its solid waste stream?
o Germany
• Which of the following arguments opposes the idea of high executive pay?
o High salaries divert resources that could be used to invest in the business
• Which of the following is a key feature of effective boards of directors?
o Hold regular meetings without the CEO present
• Which of the following is not an argument for high executive compensation?
o Inflated executive pay helps US firm compete with foreign rivals
• Which of the following is not true about water pollution?
o It can be caused by biodegradable products
• Which of the follow statements is true about the CERCLA?
o It established a fund supported primarily by a tax on the petroleum and chemical companies o The funds are collected are used to clean up sites where the original polluter cannot be identified o Both A and C, not B
• Which of the following is indicative of a firm in the pollution preventive stage of the corporate environmental responsibility model?
o Minimizing or eliminating waste before it is created
• Social investors seek to eliminate from their investment portfolios companies that:
o Pollute the environment o Discriminate against employees o Make dangerous products like tobacco or weapons o All the Above
• Environmental justice is a movement to:
o Prevent inequitable exposure to risk, such as from hazardous waste
• The mission of the SEC is to:
o Protect shareholders rights by making sure that stock markets are run fairly
• The activism of institutional investors in other countries has been spearheaded by:
o US based pension and mutual funds that in recent years acquired large stakes in foreign countries