Analysis Intermediate: Weighing Management Quality

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1.
Another term for fiduciary responsibility, according to Philip Fisher, is trusteeship.
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True. Fisher described the qualities he looks for in managers as trusteeship.
2.
How much money the company pays its CEO and top management is _______.
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An important sign of how the company has set up its incentive system. The compensation of top corporate officers is a touchy subject, mostly because a lot of corporate officers are paid a great deal of money. We dont have any hard and fast rules for determining how much is "too much," but at the extremes, executive pay can eat up a significant chunk of corporate profits, which eats directly into shareholder returns.
3.
A stock analyst might interview a companys customers to get a sense of whether the company would be a good investment.
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True. An analyst might interview customers, typically larger institutional ones.
4.
A companys board of directors represents its management.
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False. The board represents the shareholders and their interests.
5.
Whom does the board of directors of a company represent?
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The shareholders. The board is elected by the shareholders and technically represents them.