30 Questions
According to the principles, what should the company have to ensure integrity, transparency, and proper governance?
A strong and effective internal control system
What is the measure of the Board's effectiveness according to Principle 6?
Through an assessment process
What is the relationship that the Board should endeavor to exercise on all corporate affairs?
An objective and independent judgment
What should the company establish according to Principle 8?
Corporate disclosure policies
What should the company respect according to Principle 14?
The rights of stakeholders established by law, by contractual relations and through voluntary commitments
What should stakeholders have the opportunity to obtain according to the principles?
Prompt effective redress for the violation of their rights
What is a major issue in the Philippines' natural resource governance?
Poor value realization and revenue management
What is the last step in the process of risk management?
Identification of ways to reduce those risks
What is a publicly listed company?
A corporation whose ownership is distributed amongst general public shareholders
What is risk avoidance in risk management?
Performing an activity that could carry risk
What is the primary responsibility of the board according to Principle 1?
To foster the long-term success of the corporation
What is a major challenge in conducting business in the Philippines, according to customs administration?
Irregular bribes and payments
What is the purpose of setting up board committees according to Principle 3?
To support the effective performance of the board's functions
What is the purpose of establishing standards for the selection of an external auditor according to Principle 9?
To strengthen the external auditor's independence and enhance audit quality
What is the first step in the process of risk management?
Establishing the context
What is the main reason for identifying potential risks?
To determine the expected likelihood and consequences
What type of issues should be disclosed according to Principle 10?
Material and reportable non-financial and sustainability issues
What is the purpose of maintaining a comprehensive communication channel according to Principle 11?
To facilitate informed decision-making by investors, stakeholders and other interested users
What is the primary focus of the distributive justice approach?
Preventing arbitrary treatment of people based on certain characteristics
Which of the following is a characteristic of corruption?
Abuse of entrusted power for private profit
What is a common issue in the public services land administration?
Corruption and arbitrariness in the application of the law
What is the primary concern of procedural justice?
Fair administration of rules and laws
What is a common issue in the judicial system?
The rich and powerful influencing proceedings
What is a common issue in the police force?
Engaging in corruption, extortion, and local rackets
What do Capital Adequacy Ratios measure?
The adequacy of a financial institution's capital relative to its risk exposure
What is the main difference between Business Risk and Financial Risk?
Business Risk is related to the firm's operations, while Financial Risk is related to the firm's financing
What is the purpose of using derivatives, such as options and futures, in a firm's operations?
To increase the return to the common shareholders
What is the relationship between Operating Leverage and Business Risk?
Operating Leverage increases Business Risk
What is the Coefficient of Variation used to measure?
The risk of an investment relative to its expected return
What is the main difference between Operating Leverage and Financial Leverage?
Operating Leverage is related to the firm's operations, while Financial Leverage is related to the firm's financing
This quiz covers the principles and responsibilities of the board of directors in publicly listed companies in the Philippines, focusing on corporate governance and long-term success.
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