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WorksheetsTopic 4 - DPB3043
Total questions: 10
Worksheet time: 4mins
Name
Class
Date
1.
The following defining Corporate Governance
a)
Corporate mainly refers to large corporations, i.e. public listed corporations/companies (PLCs).<br />
b)
‘Governance comes from the Greek word gubernare, which means “to steer”’ (Tricker, 1984).<br />
c)
Corporate governance (CG) refers to how a board of directors steers a corporation on behalf of its shareholders.<br />
d)
Corporate governance (CG) refers to how a board of directors steers a corporation on behalf of its stakeholders.<br />
2.
Which statement are TRUE regarding Corporate Governance
a)
PLCs have many shareholders – impossible to run the business on their own <br />
b)
PLCs have to delegate the stakeholders to run the business
c)
In private firms, owners manage their own firm – goals of owners are the same as the goals of firm
d)
In PLCs, owners delegate power to professional managers to manage firms – goals of managers might not be in line with goals of owners
3.
Public Corporation Structure include
a)
Shareholders
b)
Board of Directors
c)
Stakeholders
d)
Management
4.
Theories of Corporate Governance include
a)
Shareholder Theory
b)
Agency Theory
c)
Social Instituion Theory
d)
Property Rights Theory
5.
The objectives of Corporate Governance Mechanisms
a)
To monitor activities and behaviour of controllers to align their interest with those of shareholders and to protect welfare of stakeholders
b)
To ensure board of directors fulfill fiduciary duty
c)
To contribute to improve corporate performance and to create long-term shareholder value
d)
Profit making is still the main objective, but controllers should not achieve this by ignoring the welfare of stakeholders
6.
The board of directors enjoy independence from influence and control of professional managers. This is achieved by:<br />
a)
Chairman should be an dependent director
b)
Leadership structure: different individuals holding Chairman and CEO posts, which will prevent unfettered powers in one person<br />
c)
Appointing sufficient number of independent directors<br />
d)
The board of directors should also establish dependent board committees
7.
Corporate Governance Mechanisms include
a)
Internal Audit
b)
External Audit
c)
Regulation
d)
Shareholder Activism
8.
Ethical Issues in Corporate Governance
a)
Insufficient number of independent directors
b)
Financial manipulation
c)
Excessive business risk taking, lack of risk control
d)
Poor communication of information
9.
Excessive remuneration; reward not based on performance refers to<br />
a)
Financial manipulation
b)
Excessive business risk taking, lack of risk control
c)
Poor communication of information
d)
Inflated directors remuneration<br />
10.
‘The process and structure used to direct and manage business and affairs of the company towards enhancing business prosperity and corporate accountability with the ultimate objective of realizing long term shareholder value, whilst taking into account the interests of other stakeholders.’ refers to__<br />
a)
New Economic Policy in 1971, followed by privatization of key state companies.
b)
The Malaysian Code on Corporate Governance (2000)
c)
Corporate Governance Mechanisms
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