Corporate Governance Part 1

What is corporate governance primarily concerned with?

• The marketing strategies of a company

• The structures and systems of control within a company

• The production processes of a company

• The technological advancements of a company

Who are considered stakeholders in corporate governance?

• Only the shareholders

• Only the board of directors

• Shareholders, management, employees, customers, suppliers, financiers, government, and the community

• Only the government and community

Why is corporate governance important for accountants?

• It helps them in marketing strategies

• It ensures they adhere to professional standards

• It allows them to avoid financial reporting

• It provides them with investment opportunities

What issue does corporate governance address regarding company ownership and control?

• The integration of technology in business

• The separation of ownership and control

• The expansion of global markets

• The reduction of production costs

Which technological development is mentioned as influencing the origins of corporate governance?

• The invention of the telephone

• The development of the Internet and World Wide Web

• The creation of the steam engine

• The discovery of electricity

What report in 1992 is noted as a factor in the development of corporate governance?

• The Cadbury Report

• The Smith Report

• The Johnson Report

• The Brown Report

Which act in the US was a response to major corporate failures and influenced corporate governance?

• The Dodd-Frank Act

• The Sarbanes-Oxley Act

• The Glass-Steagall Act

• The Gramm-Leach-Bliley Act

What global event in 2007/2008 is mentioned as impacting corporate governance?

• The dot-com bubble

• The global financial crisis

• The oil crisis

• The housing boom

What is the primary objective of sound corporate governance?

• To increase company profits

• To improve corporate performance and accountability

• To expand market share

• To reduce employee turnover

Which of the following is a supporting purpose of corporate governance?

• Ensure the board of directors is overpaid

• Make the board of directors responsible for managing risk

• Reduce the number of board meetings

• Limit external audits