Philippine Corporate Governance for Publicly Listed Companies
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Questions and Answers

According to the principles, what should the company have to ensure integrity, transparency, and proper governance?

  • A strong and effective human resource system
  • A strong and effective internal control system (correct)
  • A strong and effective financial management system
  • A strong and effective marketing strategy

    • What is the measure of the Board's effectiveness according to Principle 6?

  • Through the company's financial performance
  • Through the CEO's approval
  • Through an assessment process (correct)
  • Through the shareholders' feedback

    • What is the relationship that the Board should endeavor to exercise on all corporate affairs?

  • A partial and discriminatory judgment
  • A biased and dependent judgment
  • A subjective and emotional judgment
  • An objective and independent judgment (correct)

    • What should the company establish according to Principle 8?

    <p>Corporate disclosure policies</p> Signup and view all the answers

    What should the company respect according to Principle 14?

    <p>The rights of stakeholders established by law, by contractual relations and through voluntary commitments</p> Signup and view all the answers

    What should stakeholders have the opportunity to obtain according to the principles?

    <p>Prompt effective redress for the violation of their rights</p> Signup and view all the answers

    What is a major issue in the Philippines' natural resource governance?

    <p>Poor value realization and revenue management</p> Signup and view all the answers

    What is the last step in the process of risk management?

    <p>Identification of ways to reduce those risks</p> Signup and view all the answers

    What is a publicly listed company?

    <p>A corporation whose ownership is distributed amongst general public shareholders</p> Signup and view all the answers

    What is risk avoidance in risk management?

    <p>Performing an activity that could carry risk</p> Signup and view all the answers

    What is the primary responsibility of the board according to Principle 1?

    <p>To foster the long-term success of the corporation</p> Signup and view all the answers

    What is a major challenge in conducting business in the Philippines, according to customs administration?

    <p>Irregular bribes and payments</p> Signup and view all the answers

    What is the purpose of setting up board committees according to Principle 3?

    <p>To support the effective performance of the board's functions</p> Signup and view all the answers

    What is the purpose of establishing standards for the selection of an external auditor according to Principle 9?

    <p>To strengthen the external auditor's independence and enhance audit quality</p> Signup and view all the answers

    What is the first step in the process of risk management?

    <p>Establishing the context</p> Signup and view all the answers

    What is the main reason for identifying potential risks?

    <p>To determine the expected likelihood and consequences</p> Signup and view all the answers

    What type of issues should be disclosed according to Principle 10?

    <p>Material and reportable non-financial and sustainability issues</p> Signup and view all the answers

    What is the purpose of maintaining a comprehensive communication channel according to Principle 11?

    <p>To facilitate informed decision-making by investors, stakeholders and other interested users</p> Signup and view all the answers

    What is the primary focus of the distributive justice approach?

    <p>Preventing arbitrary treatment of people based on certain characteristics</p> Signup and view all the answers

    Which of the following is a characteristic of corruption?

    <p>Abuse of entrusted power for private profit</p> Signup and view all the answers

    What is a common issue in the public services land administration?

    <p>Corruption and arbitrariness in the application of the law</p> Signup and view all the answers

    What is the primary concern of procedural justice?

    <p>Fair administration of rules and laws</p> Signup and view all the answers

    What is a common issue in the judicial system?

    <p>The rich and powerful influencing proceedings</p> Signup and view all the answers

    What is a common issue in the police force?

    <p>Engaging in corruption, extortion, and local rackets</p> Signup and view all the answers

    What do Capital Adequacy Ratios measure?

    <p>The adequacy of a financial institution's capital relative to its risk exposure</p> Signup and view all the answers

    What is the main difference between Business Risk and Financial Risk?

    <p>Business Risk is related to the firm's operations, while Financial Risk is related to the firm's financing</p> Signup and view all the answers

    What is the purpose of using derivatives, such as options and futures, in a firm's operations?

    <p>To increase the return to the common shareholders</p> Signup and view all the answers

    What is the relationship between Operating Leverage and Business Risk?

    <p>Operating Leverage increases Business Risk</p> Signup and view all the answers

    What is the Coefficient of Variation used to measure?

    <p>The risk of an investment relative to its expected return</p> Signup and view all the answers

    What is the main difference between Operating Leverage and Financial Leverage?

    <p>Operating Leverage is related to the firm's operations, while Financial Leverage is related to the firm's financing</p> Signup and view all the answers

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