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Multiple Choice Quiz
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1
A keiretsu is a network of companies organized around a major bank in which country?
A)China
B)Japan
C)Australia
D)France
2
Japanese system of corporate governance has the following advantages to outside investors:
A)Japanese manager's compensation is tied to shareholder returns
B)Corporate takeovers are very common
C)Japanese companies are usually very generous to dividends
D)It is easier to nominate and elect directors
3
A firm whose only assets are controlling blocks of shares is called:
A)A conglomerate
B)A holding company
C)A pyramid
D)A dual-class company
4
In which region are bank loans the highest percentage of GDP?
A)U.S.
B)UK
C)Europe
D)Japan
5
In which region are bank loans the lowest percentage of GDP?
A)U.S.
B)UK
C)Europe
D)Japan
6
A Korean conglomerate is called a:
A)Keiretsu
B)Chaebol
C)Industrial house
D)Conglomerate
7
The U.S. has a market-based financial system because
A)It has a large stock market
B)It has a large bond market
C)It has a large stock AND bond market
D)None of these options
8
Where are bank loans more important than bond markets?
A)In the U.S.
B)In the UK
C)In Asia
D)In both the UK and Asia
9
In the US and UK, managers are legally required to act in the interests of shareholders. This is called:
A)Fiduciary duty
B)Duty of care
C)Duty of loyalty
D)All of these options
10
Which of the following is not a financial advantage of a keiretsu?
A)Internal financing is available
B)Workouts can usually be arranged
C)Boards are typically very large
D)New management search costs are lower
11
What percent of all assets in Hong Kong are controlled by the top 10 families?
A)5%
B)13%
C)24%
D)32%
12
What percent of all assets in Indonesia are controlled by the top 10 families?
A)25%
B)33%
C)46%
D)58%
13
The management board in Germany is called the
A)Board of directors
B)Aufsichtsrat
C)Vorstand
D)Codetermination
14
The supervisory board in Germany is called the
A)Board of directors
B)Aufsichtsrat
C)Vorstand
D)Codetermination
15
Pyramid ownership structures are common in
A)The U.S.
B)Africa
C)Asia
D)Australia







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