Terms in this set (32) Corporate governance is all of the following EXCEPT a. mechanisms used to determine and control the strategic direction and performance of organizations. b. a means to establish and maintain harmony between owners and top managers whose interests may conflict.
Corporate governance mechanisms sometimes fail to monitor and control top managers' decisions. c. Corporate governance mechanisms can be in conflict with one another. d. Corporate governance is best achieved with a board of directors with strong ties to management.
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Which of the following is true concerning corporate governance? Corporate governance provides rules for making decisions on corporate affairs.
The correct answer is D) Its sole objective is to maximize the value of the company in the short-term. The purpose of corporate governance is not restricted to the short term. In fact, most of its objectives are long-term. All the other options fall under the umbrella of this concept.
Which of the following is true of the "comply or explain" approach to corporate governance? It gave companies the flexibility to comply with its governance standards or justify why they didn't in their corporate documents.
Which of the following best defines the concept of corporate governance? The system of principles, policies, and procedures used to manage and control the activities of a corporation.
The correct answer is a. It refers to the manner in which an entity is managed and governed.
It gives ultimate responsibility to the Board of Directors. Corporate Governance has a broad scope. It includes both social and institutional aspects. Corporate Governance encourages a trustworthy, moral as well as ethical environment.
Which of the following is true of the "comply or explain" approach to corporate governance? It gave companies the flexibility to comply with the governance standards or justify why they didn't in their corporate documents.
Which of the following is true of managers in an organization with good corporate governance? They should fulfill a fiduciary responsibility to the owners.
The correct answer is B. Review the company's regulatory filings and financial information provided to shareholders. Most of the regulatory filings and financial information offered to the shareholders are not used in investment analysis.
The 4 Principles of Corporate Governance. Four principles lie at the heart of good corporate governance. Accountability, transparency, fairness and responsibility all impact the decisions board members make.
Answer (a) is correct because the separation of ownership and management creates an agency problem in that management may not act in the best interest of the shareholders.
Seven Characteristics of Corporate GovernanceDiscipline. Corporate discipline is a commitment by a company's senior management to adhere to behavior that is universally recognized and accepted to be correct and proper. ... Transparency. ... Independence. ... Accountability. ... Responsibility. ... Fairness. ... Social responsibility.
Q.Which of the following is not the act of Corporate Governance?B.Protecting the interest of employeesC.Fudging of AccountsD.Paying Taxes to the GovernmentAnswer» c. Fudging of Accounts1 more row
Which of the following is NOT true about the members of the board of directors in a public stock company? They are not responsible to shareholders.
The answer is b. The stockholders, themselves, do not have the right to declare dividends to be paid to the common stockholders; the Board of Directors has the right to declare and pay dividends to the common stockholders.
Examples of good corporate governance practices include: Calculation of the company's carbon footprint; Respect for human rights in the company; Transparency of executive salaries; Implementation of a code of conduct for employees.
C. They are often used to mean the same thing. D. The term "valu es" refers to religious judgments, while the term "morals" refer to coded behavior. C.
The descriptive dimension of business ethics evaluat es the degree to which the observed customs, attitudes, and rules within a business are ethical. B. Business ethics should ideally not reflect the ethical concepts of the society within which an organization functions.
A. A question of someone's personal character, his or her integrity, is not one of the basic categories of ethics.
d. the United States requires that other nations adopt its governance practices.
d. risk managers will not find a new top management position if they should be dismissed.