Accounting Multiple Choice Question – 16 May 2025

According to the UK Corporate Governance Code, a company should seek to improve corporate governance by ensuring that?

Select ONE answer:

1. The chairman and chief executive are the same individual to avoid confusion over who has responsibility for running the company
2. The chairman and chief executive are different individuals to prevent one person having too much power within the company
3. The chairman and chief executive are different individuals in case one dies or becomes incapacitated due to ill health
4. The company chairman does not take up outside directorships

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 == > A company should seek to improve corporate governance by ensuring that the chairman and chief executive are different individuals to prevent one person from having unfettered powers of decision in line with main principle A2 (leadership: division of responsibilities) of the Code.
3. Not correct
4. Not correct

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