WorksheetsTHEORIES OF CORPORATE GOVERNANCE
Total questions: 15
Worksheet time: 8mins
Principles of Corporate Governance have become reference documents for all stakeholders around the world.
TRUE
FALSE
We need corporate governance theories to ____________ the value for shareholders by ensuring good social and environmental performances.
maximizing
minimizing
Which of the following regarding agency theory is correct?
Agency theory only applies to large entities
Agents act in the best interest of the principal
Agents are assumed to be in a position of power
Agency theory defines the relationship between agents and directors
Principals cannot adequately monitor the actions taken by the agent
TRUE
FALSE
Stakeholder theory plays an important role in corporate governance and can serve the company to balance various groups' benefits
TRUE
FALSE
What is one of the approaches under stakeholder theory that have been applied by Johnson & Johnson company?
Engaging with a broad range of shareholder groups
Engaging with stakeholder in similar ways
Integrating stockholder engagement outcomes
Engagement on sustainability reporting
Which type of stakeholder mentioned by Rodriguez et al., (2002) reflect some formal contract with the business/organization?
Consubstantial stakeholder
Contractual stakeholder
Contextual stakeholder
1. Political Theory refers to political influence in the governance structure of companies
TRUE
FALSE
Politicians help to get more external information in the market to make better decision making. This statement refers to
Stewardship Theory
Stakeholder Theory
Transaction Cost Theory
Political Theory
What is the main role of the steward?
protects and maximizes shareholders' wealth
take ownership of their jobs and work at them diligently
creates wealth for its stakeholders
providing access to resources needed by the firm
Create a structure between managers and owners to create harmonization which is an advantage to ___________ theory.
Agency
Stakeholder
Stewardship
Resource Dependency
What are the examples of resources in resource dependency theory?
information
skills
legitimacy
All answer are correct
How many categories of director in resource dependency theory?
4
3
2
1
What is the transaction cost?
a. firm lower their costs or expenses via market transaction
b. firm control supply chain to achieve best price
c. firm make the product themselves
d. All answers above
firm lower their costs or expenses via market transaction
firm control supply chain to achieve best price
firm make the product themselves
All answers are correct
Which company uses transaction cost theory?
Johnson & Johnson company
Coca-cola Company
Petronas Nasional Berhad
All answers are correct
