Mid Exam Corporate Governance Even 24/25

The following statement regarding the meaning of CG is inaccurate:

• Organizational systems and tools to ensure the interests of various parties

• A process by which companies are directed and controlled

• Internal control (Board of Commissioners) and market mechanisms (market)

• Emphasizes direction and evaluation

CG maintains harmonious relations between, except:

• Investors and managers in a corporation in a market-based economy

• Goals of shareholders, managers, BoD and employees

• Economic and social goals

• Individual goals and shared goals

Conflicts of interest in companies are psychologically based on the assumption that humans are opportunistic. The definition of opportunistic is:

• Taking advantage of opportunities with an emphasis on exploiting mutual interests

• Egoism imposes one's interests

• Obtaining an advantage from a particular situation/position at the expense of another party

• Prioritize materialistic goals in various project implementation

Agency problems are described below, except

• The relationship between shareholders and management who have their interests

• Self-interested human behaviour, which underlies the principle of individualism

• Organizations as legal persons whose job is to satisfy the interests of their owners

• Agency problems that arise due to the expansion of the principal's duties

Statements related to the stakeholder perspective, except

• Increasing the prosperity of stakeholders at large scale

• Corporations as 'social entities' are aware of their social responsibilities

• The implementation of business ethics concerns corporate relationships with other parties

• Management consideration of shareholder interests in decision-making

CG practices in various countries accommodate:

• Suitability to the specific environmental context of each country

• It is the same because it is guided by 'one size fits all.'

• It is different because it adheres to the principle 'One size does not fit all.'

• By the context and dynamics of political and cultural aspects in each country

CG system in Anglo-Saxon countries, except:

• The primary control of corporations is based on market mechanisms (market-oriented).

• Diffuse corporate ownership and strengthened supremacy of shareholder value

• CG pattern 'comply or explain.'

• One-tier board model

Description of resource dependence theory, except:

• Efforts to monitor agents because they have better expertise and information

• Organizational limitations that cause dependence on the resource needs or resources of other parties

• Organizational sustainability is obtained from efforts to maintain resources from other organizations in the industry

• Prioritize management's role in negotiating dependencies on resource needs

Statements related to contingency theory, except

• Limiting company risk based on efficient transaction costs

• The best way to manage a company is based on the environmental characteristics of each organization

• Organizational responses differ according to their respective structures and conditions

• Deriving agency theory, transaction cost economics, and resource dependence theory

The implementation of CG in Indonesia is characterized by the following except:

• Private or go-public companies, regulated and owned by the founding family

• The market mechanism as a management control effort can be relied upon

• High trust in external sources of financing through bank loans

• Check and balance through the active role of the board of directors