ACCA109_Midterms

To encourage enhanced performance by the board and management, it is recommended that the following should be adopted except

• Distinguish between non-executive director’s remuneration from that of executives

• Disclosure of the process for performance evaluation of the board, it committees, individual directors and by executives.

• Establish policies on risks oversight and management

• A renumeration committee

Good governance means the process and institutions produce results that meet the needs of society while making the best use of resources at their disposal.

• Effectiveness & efficiency

• Responsiveness

• Participation

• Accountability

The basic principle of transparency and full disclosure for effective corporate governance responds positively to the following questions except

• Can and outsider meaningfully analyze the firm’s action and performance?

• Does the board of directors safeguard integrity in the financial reporting?

• Has the board built long-term sustainable growth in the shareholders’ value for the corporation?

• Does the board meet the information needs of investment communities?

The following questions indicate a firm’s conformance and compliance with corporate control except

• Does it promote objective, ethical and responsible decision making?

• Does it encourage enhanced performance?

• Does it recognize the legitimate interests of stakeholders?

• Does it recognize and manage risk?

The characteristic of good governance which requires that the institution and processes try to serve the needs of all stakeholders within a reasonable timeframe

• Effectiveness and efficiency

• Timeliness

• Responsiveness

• Accountability

Requires mediation of the different interest in society to reach a broad agreement on what is the best interest of the whole community.

• Consensus Oriented

• Equity and inclusiveness

• Participation

• Responsiveness

The basic principle of accountability for effective governance answers the following questions positively, except

• Does the board recognize and manage risk?

• Does the board lay solid foundations for management oversight?

• Does the board promote objective, ethical and responsible decision making?

• Does the composition mix of board membership ensure an appropriate range and risk of expertise, diversity, knowledge added value?

The audit committee is structured so that it is consists of the following except

• An independent chairperson who is not chairperson of the board

• At least three (3) members

• An employee with unquestionable integrity.

• Only non-executive or independent directors

. The main objective of corporate governance is to protect the long-term interest of the shareholders.

• Fair treatment and equitable treatment of shareholders

• Increase shareholders’ wealth

• Transparency and full disclosure

• Self-assessment

The main objective of corporate governance is to protect the long-term interest of the shareholders.

• Fair treatment and equitable treatment of shareholders

• Increase shareholders’ wealth

• Transparency and full disclosure

• Self-assessment