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Questions and Answers
What is the main difference between prescriptive and non-prescriptive approaches to corporate governance?
What is the main difference between prescriptive and non-prescriptive approaches to corporate governance?
- Prescriptive approach is only applicable to large companies while non-prescriptive approach is applicable to small companies
- Prescriptive approach requires actual disclosure and justification of CG practices while non-prescriptive approach sets standards of desirable practices for disclosure of compliance
- Prescriptive approach sets standards of desirable practices for disclosure of compliance while non-prescriptive approach requires actual disclosure and justification of CG practices (correct)
- Prescriptive approach and non-prescriptive approach are the same
What is the hybrid approach to corporate governance adopted by Malaysia?
What is the hybrid approach to corporate governance adopted by Malaysia?
- A prescriptive approach that requires companies to comply with specific standards of CG practices
- A non-prescriptive approach that allows companies to determine their own CG practices without justification
- A hybrid approach that combines prescriptive and non-prescriptive approaches
- An apply or explain approach that allows companies to deviate from CG practices but explain them in their annual report (correct)
What is the purpose of the Sarbanes-Oxley Act 2002 in the U.S.?
What is the purpose of the Sarbanes-Oxley Act 2002 in the U.S.?
- To require companies to disclose their CG practices without justification
- To set specific standards for companies to follow in their CG practices (correct)
- To encourage companies to comply with the spirit of the law in their CG practices
- To provide flexibility for companies to determine their own CG practices
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Description
"Corporate Governance: Prescriptive vs Non-Prescriptive Practices Quiz" - Test your knowledge on the different approaches to corporate governance. Learn about the benefits and drawbacks of prescriptive standards versus non-prescriptive practices. Explore the key regulations and acts that shape corporate governance, including the Sarbanes-Oxley Act 200
