Pre Exam CICC Day 13

What are the best ways to mitigate against the risk of sudden loss of managers who are essential to operations

• Succession planning and business interruption insurance

• Corporate governance and key person insurance

• Succession planning and corporate governance

• Succession planning and key person insurance

What term best describes the set of processes, customs, policies, laws and institutions that determine how a business is directed, administered or controlled?

• Position overload

• Corporate governance

• Succession planning

• Market overcapacity

For what business is key person insurance likely least critical?

• Small business

• Middle-market business

• Hospital

• Sole trader

Businesses should clarify and make public the roles and responsibilities of the board and management to provide shareholders with a level of accountability. What principle of corporate governance does this address?

• Interests of other stakeholders

• Integrity and ethical behaviour

• Disclosure and transparency

• Role and responsibilities of the board

Which are the commonly accepted principles in a market-oriented corporate governance model?

I. Integrity and ethical behaviour

II. Role and responsibilities of the board

III. Disclosure and transparency

IV. Regulatory responsibility

• II and III only

• I, III and IV only

• I, II, III and IV

• I, II and III only

Which are the common levels of oversight in the corporate governance process?

I. Shareholders

II. Board of directors

III. Lenders

IV. Executive management

• III and IV only

• I, III and IV only

• I, II and IV only

• II and III only

What is a corporate governance structure intended to facilitate?

• Employee and customer engagement of management

• Inputs of regulators into the objectives and goals of business entities

• Ability of regulators to monitor the social responsibility of management and the board of directors

• Establishment of business objectives and monitoring and achievement of those objectives

For what business is key person insurance likely most critical?

• Publicly traded company

• University

• Sole trader

• Hospital

What typically causes position overload?

• An unexpected downturn in business

• An organizational restructure

• Insufficient management debt

• Competitive pressures from others in the industry

Identify one of the five management responsibilities

• Market search

• Administration

• Competitive intelligence

• Production