Loma 291 Module 1 Study Guide Rated A+

Hi. We've met before. I'm Chief Executive Officer of Forthright Financial. I chair the human resources committee and sit on the risk committee. a. Inside director b. Outside director {Ans: A. - Grace is an inside director because she holds a position within Forthright Financial.}In the three lines of defense risk management model, members of a company's risk committee are on the a. first line of defense b. second line of defense c. third line of defense {Ans: B. - The risk committee is part of internal monitoring and oversight, which make up the second line of defense.}Many financial services companies combine two or more approaches to organizational structure. a. True b. False {Ans: A.- This is true. For example, a company might be organized by product, with each product line division organized by territory.}Board transactions {Ans: A board's decisions—called policy decisions—give broad guidance to management. Typical policy-making responsibilities of Forthright's board of directors include Authorizing a major business transaction, such as a merger Declaring a dividend payable to owners Setting a major company policy Operating permanent committees of the board Evaluating the company's operating results Appointing executives Setting compensation, including incentives, for executive officers}Select each