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WorksheetsCorporate Governance
Total questions: 10
Worksheet time: 8mins
Why is corporate governance required?
To increase the company's market share
To comply with international business standards
To bridge the gap between ownership and control
To ensure the company's profits are maximized
What does corporate governance seek to ensure?
That all employees receive bonuses
That the company has a global presence
That shareholders' objectives are prioritized
That directors' personal objectives are met
What is a common structure for corporate governance boards?
Single executive board
Unitary board structure
Dual management system
Multi-tier system
What approach does the Sarbanes-Oxley Act represent?
Rules-based approach
Voluntary code
Principles-based approach
Flexible approach
What is required from companies under a 'comply or explain' basis?
To follow all government regulations without exception
To comply with international standards only
To disclose non-compliance and provide explanations
To ensure 100% compliance with corporate governance codes
What is the role of non-executive directors (NEDs) on the board?
To oversee the company's marketing efforts
To execute the company's business strategies
To represent the needs of the shareholders
To manage day-to-day operations
Why should the roles of chairperson and CEO be separate?
To increase the company's profitability
To reduce the workload on the CEO
To prevent a concentration of power
To comply with international laws
What is the purpose of the audit committee?
To manage the company's investments
To oversee marketing strategies
To review financial statements and audits
To design new products
What does the nomination committee focus on?
Board composition and director nominations
Corporate social responsibility initiatives
Annual financial targets
Employee salaries
What is a key principle of best practice in corporate governance?
Eliminating the need for audit committees
Ensuring at least half the board is made up of NEDs
Having a majority of executive directors on the board
Merging the roles of CEO and chairperson
