Accounting Multiple Choice Question – 25 April 2025

The following statements have been made about the definition of corporate governance set out in the OECD’s Principles of Corporate Governance.

Statement 1 – The practices and procedures for trying to ensure that a company is run in such a way that it achieves its objectives.

Statement 2 – A set of relationships between a company’s management, its board, its shareholders and other stakeholders.

Do these statements match the definition?

Select ONE answer:

1. Statement 1 – Yes, Matches and Statement 2 – No, does not match
2. Statement 1 – No, does not match and Statement 2 – Yes, Matches
3. Statement 1 – Yes, Matches and Statement 2 – Yes, Matches
4. Statement 1 – No, does not match and Statement 2 – No, does not match

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct == > No and Yes
3. Not correct
4. Not correct

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