Day: May 11, 2025

Accounting Multiple Choice Question – 11 May 2025

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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In seeking to address the problem of the separation of ownership and control, corporate governance attempts to align the interests of which ONE of the following stakeholders?

Select ONE answer:

  1. Employees
  2. Regulators
  3. Auditors
  4. Managers

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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct == > The separation of ownership and control refers to the classic ‘agency problem’, in which investors (shareholders) who own the company delegate to the managers (as agents) the responsibility for running the business for the ultimate benefit of the owners. Corporate governance is fundamentally concerned with ensuring that the managers act as the owners would want them to do.

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