meo 1

Which is NOT TRUE about the needs for corporate governance?

• To avoid mismanagement

• To enable companies operate more efficiently, to improve access to capital, mitigate risk and safeguard stakeholders

• To increase the accountability of your company and to avoid massive disasters before they occur

• To analyze of an organization's operations and maintenance of systems of internal controls can help detect and prevent various forms of fraud and other accounting irregularities

Who runs the company operations for large companies?

• Shareholders

• Board of Directors

• External auditors

• Stakeholders

Which is the BEST definition for Corporate Governance?

• A system of law and sound approaches by which corporations are directed and controlled focusing on the internal and external corporate structures with the intention of monitoring the actions of management and directors and thereby mitigating agency risks which may stem from the misdeeds of corporate officers

• A part of regulatory and market mechanisms, the roles and relationships between a company's management, its board directors, its shareholders and other stakeholders, and the goals for which the corporation is governed

• Essentially involves balancing the interests of a company's many stakeholders, such as shareholders, senior management executives, customers, suppliers, financiers, the government, and the community

• Refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders' desires

The Purpose of a Public Company is to

• Maximize profits

• Satisfy all stakeholders equally

• Perpetuate the corporation

• None of the above

The purpose of a privately-owned company is to:

• Maximize shareholder value

• Maximize executive income

• Whatever the owners want it to be

• None of the above

Key players in good corporate governance are

• Directors and management of corporation

• Audit committee members

• Internal and External auditors

• Shareholders

Corporate governance is most often viewed as both the structure and the relationships which determine corporate direction and performance

• TRUE

• FALSE

Corporate governance does not have any impact on the share price.

• TRUE

• FALSE

The Board of Directors (BoD) remains in effective control of the affairs of the company at all times

• TRUE

• FALSE

A board of directors (BOD) is an elected group of individuals that represent shareholders.

• TRUE

• FALSE