Michael has been asked to prepare a presentation for the company directors on good corporate governance.Which one of the following is he likely to exclude from his presentation?
A. Risk management
B. Internal controls
C. Maximizing shareholder wealth
D. Accountability to stakeholders
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The tasks of which body include: monitoring the chief executive officer, formulating strategy, and ensuring that there is effective communication of the strategic plan?
A. The audit committee
B. The Public Oversight Board
C. The board of directors
D. The nomination committee
Which of the following would not be included in the principles of Corporate Social Responsibility? ?
A. Human rights
B. Employee welfare
C. Professional ethics
D. Support for local suppliers
In most countries, what is the usual purpose of codes of practice on corporate governance?
A. To establish legally binding requirements to which all companies must adhere
B. To set down detailed rules to regulate the ways in which companies must operate
C. To provide guidance on the standards of the best practice that companies should adopt
D. To provide a comprehensive framework for management and administration
The agency problem refers to which of the following situations?
A. Shareholders acting in their own short-term interests rather than the long-term interests of the company
B. A vocal minority of shareholders expecting the directors to act as their agents and pay substantial dividends
Companies reliant upon substantial government contracts such that they are effectively agents of the government
D. The directors acting in their own interests rather than the shareholders’ interests