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

Corporate Finance MCQ - Corporate Finance Section 1

21 The risk committee is least likely to:

Monitoring investment is the responsibility of the investment committee.

22 Which of the following is a form of shareholder activism?

Proposing shareholder resolutions is a form of shareholder activism.

23 Persuading shareholders to vote for a group seeking a controlling position in a company is known as a:

In a proxy contest, shareholders are persuaded to vote for a group seeking a controlling position on a company’s board of directors.

24 Which of the following is not a risk of poor corporate governance?

Effective corporate governance ensures control at all corporate levels which can help identify and manage risks at an early stage.

25 A poor corporate governance structure is most likely to:

Poor corporate governance can hinder a company's ability to meet its debt obligations and therefore increase its cost of debt.

Your Progress

0%

Start Practising!

You've answered 0 of 62 questions in this topic.

Practice Spotlight

Build momentum in Corporate Finance Section 1

Start with a short question set, review every explanation, and revisit difficult questions before moving ahead.

Day 10 / 10

Global Spotlight

Challenge Your Accuracy

Strong work at 0% accuracy. Attempt the hardest Corporate Finance Section 1 questions and explain why every incorrect option is wrong.

Day 3 / 10

Question Spotlight

Question:

Which of the following can create a divorce between ownership and voting control?

A. A skewed shareholding structure where one shareholder owns majority of the company's shares.
B. Dual class of shares with different voting rights.
C. Equal voting power of all outstanding shares.

Correct answer: B

Explanation:

Dual share classes with different voting rights can create a divorce between ownership and voting control.

Click to view the complete question details

Day 10 / 10 Open this question

Community Insight

Based on 280 saved attempts

Most Attempted TopicCorporate Finance Section 1
Most Challenging TopicCorporate Finance Section 2
Average Accuracy95%

Featured Question

(Based on recent community answers)

Q. #237970% Incorrect

Which of the following is the most appropriate definition of corporate governance?

Try This Question →

This Week's Challenge

Complete 20 questions. Community average: 10.0 this week.

0 / 20 Start Challenge →

Why Practice with Avatto?

High Quality MCQsExam-focused questions with accurate answers

Detailed ExplanationsStep-by-step explanations to enhance learning

Latest Exam PatternBased on updated syllabus and pattern

Performance AnalyticsTrack performance and improve weak areas

100% Free PracticePractice unlimited questions for free

Forgot your password?

I agree with the Terms.