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LOS a, (Part 1): Explain corporate governance.
Q1. Which of the following statements regarding effective corporate governance systems is least accurate?
A) The primary responsibilities of a corporate board of directors are to institute corporate values and establish long-term strategic objectives that are in the best interests of shareholders.
B) A corporate governance system must be continuously monitored because of changes in management and the board of directors.
C) A comprehensive list of corporate governance best practices can be applied effectively to any corporation worldwide to strengthen the company’s corporate governance structure.
Q2. Chen Michiba is an Executive Vice President with the Sakai Corporation. Michiba is concerned that Sakai does not have an effective corporate governance system in place and drafts a memo to the company’s senior management team detailing a potential structure for an improved system. Michiba starts his memo by listing the two key objectives of corporate governance:
Objective 1: Establish clear lines of responsibility and a system of accountability and performance measurement in all phases of a company’s operations.
Objective 2: Ensure that all legal and regulatory requirements are met and complied with fully and in a timely fashion.
Michiba is:
A) correct with respect to Objective 1, but incorrect with respect to Objective 2.
B) correct with respect to both Objectives.
C) incorrect with respect to both Objectives.
Q3. Corporate governance is defined as:
A) the system in a corporate structure that insures fairness and equitable treatment in all dealings between managers, directors, and shareholders.
B) the system of principles, policies, procedures, and clearly defined responsibilities and accountabilities used by stakeholders to overcome conflicts of interest inherent in the corporate form.
C) a system designed to insure that a corporation’s business is conducted in an ethical, fair, and professional manner.
Q4. Which of the following best describes the importance of a corporate governance system? A strong corporate governance system:
A) maximizes shareholder value.
B) gives the firm the ability to attract and fairly compensate qualified managers to ensure that assets of the company are used efficiently and productively.
C) is essential for companies to operate efficiently, while the lack of an effective corporate governance system can threaten the very existence of a firm.
[此贴子已经被作者于2009-3-3 14:17:17编辑过] | 
发表于 2009-3-3 14:14
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