Tag: Ethical Guidance

Big Staffie plc is considering the company’s systems of risk management and internal control.

Under the requirements of the UK Corporate Governance Code, who is responsible for maintenance of sound risk management and internal control systems?

Select ONE answer:

1. Just the executive directors
2. Just the non-executive directors
3. The entire board of directors
4. The audit committee

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 3

1. Not correct
2. Not correct
3. Correct == > The entire board is responsible: main principle C2 (accountability: risk management and internal control) of the Code.
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Little Staffie plc is a small listed company outside the FTSE 350.

Consequently, the company?

Select ONE answer:

1. Must comply with all the requirements of the UK Corporate Governance Code
2. Is governed by other corporate governance regulations than the UK Corporate Governance
3. Can be flexible in how it applies the UK Corporate Governance Code
4. Is not affected by the requirements of the UK Corporate Governance Code

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 3

1. Not correct
2. Not correct
3. Correct == > The company can be flexible in how it applies the UK Corporate Governance Code. Non-FTSE 350 companies may depart even from the main principles in particular circumstances provided their non-compliance is explained (1). The company will be expected to adhere to the requirements of the Code by virtue of being listed (2) and (4).
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Big Staffie plc is planning its forthcoming annual general meeting.

As part of this process the chairman of the company should arrange for which, if any, of the following committees to be represented by their chairman at the meeting?

Select ONE answer:

1. Audit
2. Audit and Remuneration
3. Audit, Remuneration and Nomination
4. None of these

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 3

1. Not correct
2. Not correct
3. Correct == > This is set out in provisions supporting main principle E2 (relations with shareholders – constructive use of the AGM) of the Code.
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

The board of directors of Big Staffie plc is currently considering the membership of its remuneration committee.

In this regard, which of the following statements is true?

Select ONE answer:

1. The chairman must be one of the members of the remuneration committee
2. The chairman may be both a member and chair of the remuneration committee
3. The chairman may be a member but cannot chair the remuneration committee
4. The chairman cannot be a member of the remuneration committee

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 3

1. Not correct
2. Not correct
3. Correct == > This is set out in provisions supporting main principle D2 (remuneration: procedure) of the Code.
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.