Corporate Governance and Strategic Planning & Formulas

Which is the correct definition of corporate governance?

• A set of relationships between management, its board, shareholders & other stakeholders; a system for protecting the interests of the owners (shareholders) of a company

• A section of government which is set up to advice businesses on how they operate.

• A form of strategic planning by public limited companies to ensure profitability

What is the formula for Inventory Turnover?

• Average Inventory/Cost of Sales

• Cost of Sales/Average Inventory

• Average Inventory/Revenue x 100

• Revenue/Average Inventory X 100

What is meant by a Non-Executive Director?

• These are directors that are not involved in, and have no responsibilities for the daily management of the business

• These are directors that are involved in the day to day management of the business

What is stage 3 of the strategic drift model called?

• Flux

• Incremental Change

• Strategic Drift

• Transformational Change

What is the term given to a strategy that was unplanned and emerges in response to unexpected opportunities or threats?

• Planned Strategy

• Unplanned Strategy

• Emergent Strategy

• Incremental Strategy

Gearing is considered to be "low" if it's below what percentage?

• 60%

• 70%

• 50%

• 40%

A business such as Unilever, whose well-known brands have long, slow life-cycles, will do best with an ‘Emergent’ strategy

• True

• False

In which business form is divorce of ownership and control most likely to occur?

• Sole Trader

• Partnership

• Ltd

• Plc

What is the correct formula for ROCE?

• (Operating Profit/NCL + Total Equity) X100

• (Operating Profit/NCL + CL)X100

• (NCL/Capital Employed)X100

• (NCL/NCL+Total Equity)X100

The formula for Break Even is

Fixed Costs/Contribution per unit X 100

• True

• False