Tag: Management

Identify which of the following statements concerning the requirements of the UK Corporate Governance Code is true?

Select ONE answer:

1. Non-executive directors of FTSE 350 companies, once appointed, only need to be submitted for re-election every three years
2. The board’s responsibility to present a fair, balanced and understandable assessment of company performance extends to interim reports as well as to annual financial statements
3. Directors’ service contracts should not exceed three years
4. The annual report should state the company’s business model but its strategy for delivering the objectives of the company may remain confidential

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 == > True – This is in the principles supporting main principle C1 (accountability: financial and business reporting).
3. Not correct
4. Not correct

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

The UK Corporate Governance Code contains principles for the level and make-up of directors’ remuneration.

A consultant has made the following statements about these principles.

Statement 1 – Design remuneration to promote the long-term success of the company

Statement 2 – Establish a formal and transparent procedure for developing policy on executive remuneration and for fixing the remuneration packages of individual directors

Statement 3 – Obtain the auditor’s approval of the remuneration set

Which statements are true?

Select ONE answer:

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3

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 1

1. Correct == > True True False
2. Not correct
3. Not correct
4. Not correct

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

The performance of Betty in her role as an executive director of Big Staffie plc for the past year is due to be evaluated in line with the requirements of the UK Corporate Governance Code.

This means that her performance will be judged in terms of?

Select ONE answer:

1. Her effectiveness of contribution and time commitment to the role
2. Her time commitment to the role only
3. Her effectiveness of contribution only
4. Neither 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 1

1. Correct == > This is set out in principles supporting main principle B6 (effectiveness: evaluation) of the Code.
2. Not correct
3. Not correct
4. Not correct

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

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

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