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CFA Level I — Corporate Issuers: 85 practice questions

85 original CFA Level I questions on Corporate Issuers, each with an explanation and its source. Topics: Organizational Forms, Stakeholders, Governance and ESG, Working Capital and Liquidity, Capital Investments and Capital Allocation, Capital Structure and Business Models. One free sample is below; the rest of the questions are available with a paid plan.

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One Corporate Issuers question with explanations

Open a question, choose an answer in your head, then open the explanation.

Q1 Organizational Forms, Stakeholders, Governance and ESG(企業形態・ステークホルダー・ガバナンス・ESG)Organizational Forms, Stakeholders, Governance and ESG

Which of the following is most likely an example of a principal–agent conflict between managers and shareholders?

  1. A CEO pursues a large acquisition mainly to increase the size of the firm and her own compensation.
  2. The company issues bonds that contain restrictive covenants.
  3. Shareholders vote at the annual meeting to appoint the external auditor.
Show the answer and explanation

Answer: A. Empire building—growing the firm for managers' benefit (pay, prestige) rather than for value creation—is a classic manager–shareholder agency conflict.

Sources: CFA Institute, 2026 Level I Topic Outlines (Learning Outcome Statements), Corporate Issuers, Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits

That's the free sample. The rest of the questions are available with a paid plan.

That's the free sample. The rest is available with a plan.

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Topics in Corporate Issuers

  • Organizational Forms, Stakeholders, Governance and ESG(企業形態・ステークホルダー・ガバナンス・ESG)Organizational Forms, Stakeholders, Governance and ESG 27
  • Working Capital and Liquidity(運転資本と流動性)Working Capital and Liquidity 16
  • Capital Investments and Capital Allocation(資本投資と資本配分)Capital Investments and Capital Allocation 23
  • Capital Structure and Business Models(資本構成とビジネスモデル)Capital Structure and Business Models 19

FAQ

Are these CFA Level 1 Corporate Issuers questions free?

The sample question on this page is free to read, with the answer and sources. The full set of 85 Corporate Issuers questions is in the paid plans.

Are these the exam body's own questions?

No. Every question is original and written by Sakakikaen Co., Ltd. examplat is not affiliated with or endorsed by the organisation that runs CFA Level I. Check its website for the current syllabus.