To encourage Executive Directors to operate in the best interests of the shareholders, they could?
A. be given a high basic salary
B. receive share options based on both individual and company’s performance
C. be entitled to large payment upon resignation or termination
D. be asked to attend AGMs
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Corporate Social Responsibility refers to the idea that a company should?
A. play an active part in the social life of the local neighborhood
B. be sensitive to the needs of all stakeholders
C. be alert to the social needs of all employees
D. act responsibly in relation to shareholders’ overall needs – not just their financial needs
Modern view on Corporate Social Responsibility is:
A. it is a way to further a company’s business and attract additional shareholders
B. it is necessary to reduce product liability claims
C. a company must give part of its profit to charity
D. social responsibility is incompatible with the objective of maximizing shareholder’s wealth
Which one of the following is not an aim of internal controls?
A. To enable the organization to respond appropriately to business, operational and financial risks
B. To eliminate the possibility of impacts from poor judgement and human error
C. To help ensure the quality of internal and external reporting
D. To help ensure compliance with applicable laws and regulations
Which of the following statements about external auditors is not correct?
A. External auditors are appointed by the shareholders of a company
B. The primary responsibility of external auditors is to investigate financial irregularities and report them to shareholders
C. External auditors may rely on the work of internal auditors, if they first assess its worth
D. External auditors are concerned with the financial records and statements of the organization
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