Lesson 1 Flashcards
(81 cards)
1
Q
Process whereby elements in society weld power, authority and influence and enact policies and decision concerning public life and social upliftment
A
Governance
2
Q
What are the seven characteristics of government
A
Participation
Rule of law
transparency
responsiveness
consensus oriented
equity and inclusiveness
effectiveness
3
Q
Participation by man and woman through direct or legitimate institutions or representation
A
Participation
4
Q
Good governance requires legal frameworks that are enforced impartially, full protection of human rights particularly those of minorities
A
Rule of law
5
Q
Decisions that they’re enforcement should be done according to rules and regulations with information freely available
A
Transparency
6
Q
Institution should strive to serve the needs of all shareholders within a reasonable time frame
A
Responsiveness
7
Q
Mediation of different interests is crucial to reach a broad consensus on the best interest of our community radiation
A
Consensus oriented
8
Q
All members should feel included and have a stake on society with opportunities for the vulnerable to improve their wellbeing
A
Equity and inclusiveness
9
Q
process and institutions should produce results that meet the needs of society
A
Effectiveness
10
Q
A vital system for ensuring business around ethically efficiently and in the best interest of all those involved. It is a rule practices and process. Business corporations are directed and controlled.
A
Corporate governance
11
Q
What is the purpose of corporate governance
A
To facilitate effective entrepreneurial and prudent management that can deliver long-term success of the company
12
Q
What are the four basic objects of corporate governance
A
Fair and equitable treatment of shareholders
self-assessment
increase shareholders
transparency and full disclosure
13
Q
Ensure equitable and fair treatment of all shareholders of the company
A
Fair and equitable treatment of shareholders
14
Q
A
15
Q
Enables firms to assess their behaviors and actions before they are scrutinized by regulatory agency
A
Self-assessment
16
Q
Strong corporate governance leads to higher valuations and attract investors
A
Increase shareholders
17
Q
Ensuring transparency through the full disclosure of company transactions
A
Transparency and full disclosure
18
Q
What are the three basic principles of effective corporate governance
A
Transparency and full disclosure, accountability and corporate control
19
Q
Open communication and information sharing
A
Transparency and full disclosure
20
Q
Baking responsibility of for action and decisions
A
Accountability
21
Q
Ensuring the board is acting in the best interest of the company
A
Corporate control
22
Q
All of these are the important questions of transparency and full disclosure except:
✓ Does it safeguard integrity in financial reporting?
✓ Does the board meet the information needed of investment communities?
✓ Does it renumerate fairly and responsibly?
✓ Can an outsider meaningful analyze the organization’s action and performance?
A
Does it renumerate fairly and responsibly?
23
Q
A
24
Q
A
25
The following are the important questions of accountability except;
✓ Does it promotes objective ethical and responsible decision making
✓ Does it lay solid foundation of management of her side
✓ Does the board clarify its role and that of management
✓ Does it encourage enhance performance
Does it encourage enhance performance
26
The following are the important questions of corporate control except;
Does the board build long-term sustainable growth in shareholders value of the corporation
Does it make timely and balanced disclosure
Does it recognize and manage risk
Does it recognize the legitimate interest of shareholders
Does it make timely and balanced disclosure
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Provide effective oversight through the election of board members, approval of major incentives such as buying or selling stocks, annual reports on management compensation from the board
Shareholders
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The major representative of stockholders store that the organization is run accordingly to the organizations charter and that there is proper accountability
Bored of directors
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The same as the board role of the entire BOD
Non-executive or independent directors
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Operations and accountability manager, organizations effectively; provide accurate and timely reports to shareholders and the other stakeholders
Management
31
Provide oversight of the internal and external audit functions and the process of the process of preparing the annual financial statement as well as public reports on internal control
Audit committee of the board of directors
32
Insures that accuracy timeliness and fairness of public reporting of financial and other information for public companies
SEC or SECURITY AND EXCHANGE COMMISSION
33
The basic principle of "transparency and full disclosure" for effective corporate governance response positively to the following questions, except;
✓ Does the board of directors safeguard integrity in financial reporting?
✓ Does the board meet the information needed of investment communities?
✓ Can an outside their meaningfully analyze the firm's action and performance?
✓ Has the board built long-term sustainable growth in shareholders value for the corporation?
Has the board built long-term sustainable growth in shareholders value for the corporation?
34
The basic principle of "accountability" for effective governance answers the following questions positively, except;
A. Does the board recognize and manage risk?
B. Does the board lay solid foundation for management oversight?
C. Does the composition mix of board membership ensure an appropriate range and risk of expertise diversity common knowledge added value?
D. Does the board promote objective, ethical and responsible decision making?
A. Does the board recognize and manage risk?
35
"Transparency and full disclosure" principle advocates the following except;
A. Sound disclosure policies and practices
B. Solid foundation for management oversight
C. Meeting the information needs of investment committees
D. Safeguards integrity in financial
A. Sound disclosure policies and practices
36
The rise of shareholders can be effectively upheld through the following measures except;
A. by establishing an audit committee
B. By designing and disclosing and communication strategy to promote affective communication with shareholders.
C. By encouraging active participation at general meetings.
D. Buy a requiring the external auditors to attend the annual general meeting and to answer questions about audit.
A.
37
The safeguard integrity in financial reporting, the business firm should do the following except;
A. Establish an audit committee
B. Request the external auditors to attend the annual general meeting
C. Disclose the function reserved to the board and those delegated to management
D. Disclose the policy concerning trading in company securities by directors, officers and employees.
C.
38
The characteristics of good Governance where fair legal frameworks are enforced impartially is?
A. Participation
B. Rule of law
C. Equity
D. Accountability
E. Transparency
F. Government
G. Obligation
H. Corporate Governance
I. Mesyousomuch balik kana huhu
B. Rule of law
39
True or false, management and the board have responsibility to act within the laws of society and to meet various requirements of creditors, employees and the stakeholders.
True
40
Financial statement that are clear with full disclosure and that reflects the underlying economics of the company
Financial transparency
41
Approve annual financial reports and other public documents are specific responsibilities of
A. Management
B. Board of directors
C. Shareholders
D. Employees
B. Board of directors
42
Providing oversize of the internal and external audit function, the process of preparing the annual financial statement and public reports on internal control are the responsibility of
A.board of directors
B.chief executive officers
C.chief Financial officers
D. Audit committee of the board of directors
D. Audit committee of the board of directors
43
Who is responsible for ensuring the accuracy, timeliness of public reporting of financial and other information for public companies?
A. External auditors
B. Securities and exchange commission
C. Shareholders
D. Bored of accountancy
B. Securities and exchange commission
44
Who performs audit of companies for compliance with company policies and laws, audits efficiency of operations and periodic evaluation and test of controls
A. External auditors
B. Internal auditors
C. Commission on audit
D. Chief accountant
B. Internal auditors
45
An independent director is expected to?
A. Apply expertise and skills in the corporations best interest
B. Asset management to keep performance objectives at the top of its agenda
C. Respect that collective, cabinet nature of the board's decision
D. Act as conduit between the board and the organization
A. Apply expertise and skills in the corporations best interest
46
The governing body elected by the stockholders that exercise the corporate power of a corporation, conduct all its business and controls its property
Board of directors
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A group of executives given the authority by the board of directors to implement the policies It has laid down in the conduct of the business of the corporation
Management
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A person who is independent of management and the controlling shareholders, and is free from any business or other relationship which could, or could reasonably be perceived to, materially interfere with his exercise of independent judgment in carrying out his responsibilities as a director
Independent director
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A director who has executive responsibility of day to day operation of a part or the whole of the organization
Executive director
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A director who has no executive responsibility and does not perform any work related to the operation of the corporation
Non-executive director
51
A group of corporations that has diversified business activities in varied industries, whereby the operations of such business or controlled and managed by a parent corporation entity
Conglomerate
52
Audit committee activities responsibilities include which of the following?
A. Selecting the external audit firm
B. Approving corporate strategies
C. Reviewing management performance and determining compensation
D. None of the above
53
Which of the following audit committees responsibility has the SEC mandated?
A. Obtaining each year a report by the internal auditor that addresses the company's internal control procedures, any quality control or regulatory problems, and any relationships that might threaten The independence of the internal auditor.
B. Discussing in its meetings the company's earnings press releases, as well as financial information and earnings guidance provided to analysts.
C. Reviewing with the internal auditor any audit problems or difficulties that they had with management
D. All of the above
D. All of the above
54
_______ can be defined broadly as a set of moral principles or values that govern the actions and the decisions of an individual or group
Ethics
55
What are the (10) list of ethical principles incorporates the characteristics and values that most people associate with ethical behavior:
✓ Integrity
✓ Honesty
✓ Trustworthiness and promise keeping
✓ Loyalty (fidelity) and confidentiality
✓ Fairness and Opennes
✓ Caring for others
✓ Respect for others
✓ responsible citizenship
✓ pursuit of excellence
✓ Accountability
56
Being truthful, sincere, forthright, straightforward, Frank, candid, do not cheat, steal, lie, deceive or act deviously
Honesty
57
True or false, the two primary reason why people act unethically, first, the person's ethical standards are different from those of society as a whole and the person choose to act selfishly
True
58
Refers to standards of moral conduct, behavior and judgment in business. It involves making the moral and right decision while engaging in such business activities as manufacturing and selling a product and providing a service to customers.
Business ethics
59
Is based on the personal value and standards of each person engaged in business
Business ethics
60
True or false; The main purpose of business ethics is to help business and would be business to determine what business practices what are right and what are wrong
True
61
The most common of this unethical practices of business establishment are __________ and ________
Misrepresentation and Over-persuasion
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Misrepresentation may be classified into two types, what are those?
Direct Misrepresentation and Indirect Misrepresentation
63
Is Characterized by actively misrepresenting about the product or customers
Direct Misrepresentation
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Direct Misrepresentation includes??? Those 7 kabuok
✓ Deceptive packaging
✓ Misbranding or Mislabeling
✓ False or misleading advertising
✓ Adulteration
✓ Weight understatement or short weighing
✓ Measurement understatement or short measurement
✓ Quantity understatement or short numbering
65
Is characterized by omitting adverse or unfavorable information about the product or service
Indirect Misrepresentation
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among the most common practices involved in direct misrepresentation are?
✓Caveat Emptor
✓Deliberate Withholding of information
✓Passive Deception
67
Is a practice very common among salesmen. Translated, means "let the buyer beware".
Caveat Emptor
68
Indirect misrepresentation and unethical because a seller is a witness for The goods he is selling. He testifies to it's nature, features, uses and qualities.
Caveat Emptor
69
Following the argument that caveat Emptor is unethical, the _____________ in a business transaction is also unethical no business transaction is fair where one of the parties does not exactly know what he is giving away or receiving in return
Deliberate Withholding of Information
70
Examples of direct misrepresentation about the product include the following except;
A. False advertising
B. Deceptive packaging
C. Mislabeling
D. Caveat emptor
D. Caveat emptor
71
Examples of indirect Misrepresentation about the following except;
A. Caveat Emptor
B. Deliberate Withholding adverse information
C. Business Ignorance
D. False Advertising
D. False Advertising
72
Examples of direct misrepresentation about the product includes the following except;
A. Adulteration
B. Short merging
C. Short measurement
D. Over persuasion
D. Over persuasion
73
Is a situation a person faces in which a decision must be made about the appropriate behavior
Ethical dilemma
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Is the abuse of private and public office for personal gain. it includes acts of bribery, embezzlement, nepotism, kickbacks, and state capture.
Corruption
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The _________ Criminalizes money laundering and organized crime.
Anti-Money laundering Act
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The ____________ Criminalizes active and passive bribery, embezzlement, extortion, abuse of office and conflict or interest in the public sector
Anti-Graft and Corrupt Practices Act
77
Bribery of public officials and trading in influence are also criminalized in the ___________. The Act forbids offfice-holders from accepting any gifts or material benefits in exchange for any government permit or license.
Anti-Red Tape Act
78
It is a key function to control corruption and bribery risk, and can comprise a whistle-blowing policy or feedback channel where staff can conveniently raise concerns and feel protected from being identified or retailed against.
Corruption Reporting System
79
Interlocking directorship can be committed by?
A. Rand and file employees
B. Members of the board of directors
C. Top executive officers
D. Middle-level Managers
80
What are the unethical practices that are more common to executive officers and lower level managers?
✓ Claiming a vacation trip to be a business trip
✓ Having employees do work unrelated to the business
✓ loose or ineffective controls
✓ Unfair labor Practices
✓ Making False Claims about losses to free themselves from paying the compensation and benefits provided by law
✓ Making employees sign documents showing that they are receiving fully what they are entitled to under the law when in fact they are only receiving a fraction of what they are supposed to get.
✓ Sexual Harassment
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