Introduction to Corporate Governance and Other ESG Considerations

Question 1

A  \_\_\_\_\_\_\_\_ (also known as an agency relationship) is created 
when a principal hires an agent to perform a particular task or service.

Answer 1

principal–agent relationship

Question 2

What is straight voting?

Answer 2

One vote, one share

Question 3

_________ enables each shareholder to accumulate and
vote all his or her shares for a single candidate in an election involving more than
one director

Answer 3

Cumulative

voting (as opposed to straight voting)

Question 4

Some companies have \_\_\_\_\_\_\_\_\_
whereby directors are typically divided into three classes that are elected separately 
in consecutive years—that is, one class every year.

Answer 4

staggered boards

Question 5

Managerial teams can also be displaced through a ________, which involves shareholders selling their interests directly to the group
seeking to gain control

Answer 5

tender offer

Question 6

______ into individual stock valuation is the explicit inclusion of ESG
factors into traditional financial analysis of individual stocks

Answer 6

Full integration

Question 7

_______ is the use of certain investment strategies or products to
change specific aggregate ESG characteristics of a fund or investment portfolio to a
desired level

Answer 7

Overlay/portfolio tilt