Choose wisely. There is only one correct answer to each question.
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1.
In terms of financial transparency, investors should prefer companies that _______.
Disclose the minimum information, plus useful information that helps investors understand the business. Certainly every company should disclose all the information required by the SEC and other regulators. Above and beyond that, we think investors should favor companies that are forthright about their businesses, in good times and bad, and provide information that helps investors understand operations.
2.
To learn about a prospective company, stock analysts might interview _______.
All of the above. An analyst might interview all of them, and others as well, such as suppliers.
3.
Whom does the board of directors of a company represent?
The shareholders. The board is elected by the shareholders and technically represents them.
4.
Investors should look for companies that _______.
Have set clear goals for measuring progress. Good measurement is good management.
5.
A companys board of directors represents its management.
False. The board represents the shareholders and their interests.
