Tag: Ethics

Different corporate governance systems have emerged across the world reflecting the different systems by which companies are managed and controlled.

These management differences are often reflected in different board structures.

The following statements have been made about the structure of a board of directors.

Statement 1 – In the UK and Germany there is a unitary board of directors’ system.

Statement 2 – A two-tier system comprises a management board and a supervisory board.

Are these statements true or false?

Select ONE answer:

1. Statement 1 – True and Statement 2 – False
2. Statement 1 – False and Statement 2 – True
3. Statement 1 – True and Statement 2 – True
4. Statement 1 – False and Statement 2 – False

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 == > False and True
3. Not correct
4. Not correct

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

The directors of Big Staffie plc state in the company’s annual report that their adherence to the requirements of the UK Corporate Governance Code is driven by their belief that the aim of corporate governance is the nurturing of enterprise while ensuring accountability in the exercise of power and the patronage of firms.

It is clear from this that the directors of Big Staffie plc have adopted?

Select ONE answer:

1. The corporate perspective on corporate governance
2. The public policy perspective on corporate governance
3. The legal perspective on corporate governance
4. The stakeholder perspective on corporate governance

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 == > This definition of the aim of corporate governance is the broadest possible perspective – the public policy perspective.
3. Not correct
4. Not correct

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

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

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

The agency problem is a driving force behind the growing importance attached to sound corporate governance.

In this context, the ‘principal’ is?

Select ONE answer:

1. The body of customers
2. The body of shareholders
3. The body of managers
4. The company

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 == > The separation of ownership and control creates a situation where managers act as the agents of owners (shareholders), who are, therefore, the principals.
3. Not correct
4. Not correct

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

In both bank-based and market-based financial systems, financial intermediation is of increasing importance due to its ability to address the market imperfection of?

Select ONE answer:

1. Monopoly
2. Asymmetric information
3. Trade barriers
4. Tariffs and quotas

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 == > Financial intermediation overcomes the problem of asymmetric information associated with direct financing.
3. Not correct
4. Not correct

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