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Question 1

In practice there are four principles of good corporate governance, which are:

Answer 1

1. Transparency
2. Accountability
3. Responsibility
4. Fairness

Question 2

__________in business is the basis for trust between a firm and its investors, customers, partners, and employees. Being transparent means being honest and open when communicating with stakeholders about matters related to the business

Answer 2

Transparency

Question 3

__________ __________refers to a publicly traded company’s performance in non-financial
areas such as social responsibility and sustainability

Answer 3

Corporate accountability

Question 4

_______ is to help protect the environment and to take care of the welfare of its stakeholders.

Answer 4

RESPONSIBILITY

Question 5

________in business refers to the value of treating people with a standard of performance that is consistent and equal based on company’s commitments. It-means giving customers a fair value for their money

Answer 5

Fairness

Question 6

______________ ____________is the
value delivered to the equity owners of a corporation due to management’s ability to increase sales, earnings, and free cash flow, which leads to an increase in dividends and capital gains for the shareholders.

Answer 6

Shareholder value

Question 7

is essentially the owner’s rights to the assets of the business. It’s what’s left over for the owner after subtracting all the liabilities from the assets.

Answer 7

Owner’s equity

Question 8

__________is, in a way, a higher bar than success. It means others look at you as a reliable resource and decision maker. It allows those who rely on you to know they can count on you, trust you, do business with you, and align with you.

Answer 8

Credibility

Question 9

Most people would say that corporate social responsibility is an _______ ________ concept which has been developed primarily in the UK and the USA.

Answer 9

Anglo - Saxon

Question 10

The _______ _______ of governance, however, is founded in the context of the family and the local community and is therefore the opposite of the Anglo Saxon model, being based on a bottom up philosophy rather than a hierarchical top down approach.

Answer 10

Latin Model

Question 11

The _________ _________ ________of governance is of course the dominant model throughout the world and, as a consequence, the concern with corporate social responsibility has spread to other systems of governance.

Answer 11

Anglo Saxon system

Question 12

Frequently, members of the boards of directors are _______________________– in interlocking relationships, which many
people see as posing a potential conflict of interest.

Answer 12

CEOs of
other corporations

Question 13

The ___________ ___ ___________ is nominally selected by and
responsible to the shareholders, but the articles of many
companies make it difficult for all but the largest shareholders
to have any influence over the makeup of the board.

Answer 13

board of directors

Question 14

There are 8 principles which underpin every system
of governance:

Answer 14

1, Transparency
2. Rule of Law
3. Participation
4. Responsiveness
5. Equity
6. Efficiency and Effectiveness
7. Sustainability
8. Accountability

Question 15

is of particular importance to
external users of such information as these
users lack the background details and
knowledge available to internal users of such
information.

Answer 15

Transparency

Question 16

It is apparent that good governance requires a fair
framework of rules of operation. Moreover these
rules must be enforced impartially, without
regard for power relationships

Answer 16

Rule of Law

Question 17

is of course desirable,
this is not an essential principle of good governance. The ability
of all to participate if so desired is however an essential
principle.

Answer 17

Participation

Question 18

implies that the governance
regulations enable the institutions and
processes of governance to be able to serve
all stakeholders within a reasonable
timeframe.

Answer 18

Responsiveness

Question 19

This principle involves ensuring that all members
of society feel that they have a stake in it and
do not feel excluded from the mainstream.

Answer 19

Equity

Question 20

____________ of course implies the transaction cost
minimisation whereas ____________ must be
interpreted in the context of achievement of the
desired purpose.

Answer 20

Efficiency and Effectiveness

Question 21

This of course requires a long-term perspective for
sustainable human development and how to achieve
the goals of such development

Answer 21

Sustainability

Question 22

is concerned with an organization recognizing that its
actions affect the external environment, and therefore assuming
responsibility for the effects of its actions.

Answer 22

Accountability

Question 23

describes governance as:
“the manner in which power is exercised in the
management of a country’s economic and
social resources for development”.

Answer 23

The Asian Development Bank (ADB)

Question 24

Similarly, the _____ ______refers to
governance as consisting of the traditions
and institutions by which authority in a
country is exercised.

Answer 24

World Bank

Question 25

________ _______________ is of course important in every sphere of society whether it be the corporate environment or general society or the political environment. Good governance can, for example, improve public faith and confidence in the political environment.

Answer 25

Good governance

Question 26

___________ in this context therefore is concerned with the resources of society as well as the resources of the organization. As far as stewardship of external environmental resources is concerned, then, the central tenet (principle or belief) of such stewardship is that of ensuring sustainability.

Answer 26

Stewardship

Question 27

___________is focused on the future and is concerned with ensuring that the choices of resource utilization in the future are not constrained by decisions taken in the present.

Answer 27

Sustainability is focused on the future and is concerned with ensuring that the choices of resource utilization in the future are not constrained by decisions taken in the present.

Question 28

is the dominant ideology of economic activity, and the argument of course is that transaction costs are lowered through this form of organization.

Answer 28

The free market

Question 29

__________ ____________ can be considered as an environment of trust, ethics, moral values and confidence – as a synergic effort of all the constituent parts – that is the stakeholders, including government, the general public etc., professional, service providers, and the corporate sector.

Answer 29

Corporate governance

Question 30

Often companies’ main target is to become _______ – while at the same time remaining sustainable – as a means to get competitive power.

Answer 30

Global

Question 31

Central to this _______ ________is a concern for the future which has become manifest through the term sustainability. This term sustainability has become ubiquitous (all-over) both within the discourse of globalization and within the discourse of corporate performance.

Answer 31

Social contract

Question 32

is of course a controversial issue and there are many definitions of what is meant by the term. At the broadest definitions sustainability is concerned with the effect which action taken in the present has upon the options available in the future.

Answer 32

Sustainability

Question 33

If resources are utilized in the present, then they are no longer available for use in the future, and this is of particular concern if the resources are ______ in quantity. Thus, raw materials such as coal, iron or oil are finite in quantity and once used are not available for future use.

Answer 33

finite

Question 34

The _____ has broad power to manage the corporation on a daily basis, but needs to get board approval for certain major actions, such as hiring his / her immediate subordinates, raising money, acquiring another company, major capital expansions, or other expensive projects.

Answer 34

CEO

Question 35

The _____ __ ______ is nominally selected by and responsible to the shareholders, but the articles of many companies make it difficult for all but the largest shareholders to have any influence over the makeup of the board.

Answer 35

board of directors

Question 36

Transparency in business is the basis for trust between a firm and its investors, customers, partners, and employees. Being transparent means being ______ and _______ when communicating with stakeholders about matters related to the business

Answer 36

Honest Open