Corporate governance

1. What is the primary objective of corporate governance?

• Maximize shareholder wealth

• Enhance the company's public image

• Ensure transparency and accountability in management

• Increase the company's profitability

Which of the following is NOT a principle of corporate governance?

• Accountability

• Transparency

• Fairness

• Profit Maximization

The term "agency problem" in corporate governance refers to:

• A conflict between the board of directors and shareholders

• A conflict of interest between management and shareholders

• A disagreement between different stakeholders

• The external regulatory bodies interfering in company operations

Which of the following is typically responsible for setting the company's corporate governance policies?

• Shareholders

• The CEO

• The Board of Directors

• The Board of Directors

What is the role of independent directors in corporate governance?**

• To represent the interests of the shareholders

• ) To run the day-to-day operations of the company

• To manage the company’s finances

• To ensure the company complies with all laws

What is "shareholder activism" in the context of corporate governance?

• When shareholders work with management to improve company performance

• When shareholders actively campaign to change company policies or leadership

• When shareholders sell their shares to protest poor performance

• When shareholders remain passive in decision-making

Which global organization has created widely recognized principles of corporate governance?

• The World Trade Organization (WTO)

• The International Monetary Fund (IMF)

• The Organization for Economic Co-operation and Development (OECD)

• The United Nations (UN)

Which of the following best explains the term "transparency" in corporate governance?

• Making all information available to the public

• Ensuring decisions are made behind closed doors

• Providing clear, accurate, and timely information to stakeholders

• Reducing costs to increase profitability

What does the term "dual-class share structure" in corporate governance mean?

• Different classes of shares have the same voting rights

• All shareholders have equal voting power regardless of shares owned

• A system where some shares have more voting power than others

• Shareholders are allowed to vote twice in decision-making

Which of the following best describes a "stakeholder" in corporate governance?

• Only the shareholders of the company

• Any party affected by the actions of the company

• Only the employees and suppliers

• ) Only the government and regulatory bodies