Chapter 2

Question 1

Define corporate governance

Answer 1

High-level framework within which a company’s managerial decisions are made

Question 2

What are the aims of good corporate governance?

Answer 2

• Efficient management to meet stakeholder req

Question 3

How can companies be taxed on products?

Answer 3

• Realised capital gains with a relief on inflation
• Unrealised capital gains
• Investment income with relief on expenses
• Wealth tax on policy documents
• Policy proceeds

Question 4

List all the external environment considerations

Answer 4

• Leg+ Reg
• • Tax
• Accounting Standards.
• State benefits
• Risk management requirements, solvency requirements and capital adequacy.
• Climate change and other environmental issues.
• Demography.
• Cultural changes and trends.
• Technological change.
• Lifestyle Considerations.
• Competitive advantages.
• Marketability.
• Corporate governance.
• Internal practise and consistency.