Prescriptive vs Non-Prescriptive Corporate Governance Quiz

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

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)

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