11 Questions
Which principle of effective corporate governance does NOT respond positively to the question about safeguarding integrity in financial reporting?
Accountability
Which aspect is NOT positively answered by the principle of 'transparency and full disclosure' according to the text?
Promoting objective, ethical, and responsible decision making
Which is NOT a question positively answered by the principle of 'accountability' for effective governance?
Ensuring an appropriate range and risk of expertise diversity
Which principle advocates for solid foundations for management oversight according to the text?
Transparency and full disclosure
Which aspect is NOT positively answered by the basic principle of 'transparency and full disclosure' in corporate governance?
Building long-term sustainable growth in shareholders’ value
Which question is NOT answered positively by the principle of 'accountability' in effective governance?
Ensuring an appropriate mix of board membership
Which measure is effective in upholding the rights of shareholders according to the text?
Establishing an audit committee
What is a recommended action for a business firm to safeguard integrity in financial reporting?
Requesting the external auditor to attend the annual general meeting
Which action is NOT recommended for a business firm to safeguard integrity in financial reporting?
Hiring an external auditor with no experience
How can the rights of shareholders be upheld effectively according to the text?
Encouraging active participation at general meetings
Which action is essential for promoting effective communication with shareholders?
Designing and disclosing a communications strategy
Study Notes
Effective Corporate Governance
- The principle of 'fairness' does not respond positively to the question about safeguarding integrity in financial reporting.
Transparency and Full Disclosure
- The aspect of safeguarding integrity in financial reporting is not positively answered by this principle.
- This principle does not answer questions related to safeguarding integrity in financial reporting.
Accountability
- The question of safeguarding integrity in financial reporting is not answered positively by this principle.
- Accountability does not address the question of safeguarding integrity in financial reporting.
Management Oversight
- The principle that advocates for solid foundations for management oversight is 'responsibility'.
Safeguarding Integrity in Financial Reporting
- The basic principle of 'transparency and full disclosure' does not positively answer the question of safeguarding integrity in financial reporting.
- To safeguard integrity in financial reporting, a recommended action for a business firm is to ensure transparency and accountability.
- An action not recommended for a business firm to safeguard integrity in financial reporting is a lack of transparency and accountability.
Upholding Shareholders' Rights
- Effective measures for upholding the rights of shareholders include ensuring transparency and accountability.
- To uphold the rights of shareholders, a recommended action is to promote effective communication with them.
- Effective communication with shareholders is essential for promoting effective corporate governance.
Test your knowledge on corporate governance principles with this multiple-choice quiz. Analyze each question carefully to select the correct answer. Submit your answers as per the instructions provided.
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