Lesson 2

Question 1

CORPORATE SYSTEM:

Answer 1

Corporate Management
Corporate Governance

Question 2

It essentially involves balancing the
interests of a company’s many stakeholders such as shareholders, managers, customers, suppliers, financiers, government, and the community.

Answer 2

Corporate Governance

Question 3

is the system of rules, practices, and processes by which a company is directed and controlled.

Answer 3

Corporate Governance

Question 4

deals with daily operations and the process of leading, administrating, and directing a company

Answer 4

Corporate Management

Question 5

is defined as someone who protects and takes care of the needs of
others.

Answer 5

steward

Question 6

company executives protect the interests of the owners or shareholders and make decisions on their behalf. Their sole objective is to create and maintain a successful organization so the shareholders prosper.

Answer 6

stewardship theory

Question 7

Pillars of Corporate Governance:

Answer 7

Accountability
Fairness
Transparency

Question 8

Ensures that management is
accountable to the Board and that Board is accountable to shareholders

Answer 8

Accountability

Question 9

refers to the obligation and responsibility to give an explanation
or reason for the company’s actions and conduct.

Answer 9

Accountability

Question 10

is any individual, group, or party that has an interest in an organization and the outcomes of its actions.

Answer 10

Stakeholders

Question 11

an individual or institution (including a corporation) that legally owns one or more shares of stock in a public or private corporation.

Answer 11

Shareholders

Question 12

Treat all team members, customers, and suppliers with respect and without bias. Provide effective redress for violations.

Answer 12

Fairness

Question 13

refers to equal treatment, for example, all shareholders, including
minorities should receive equal consideration for whatever shareholdings they hold. Each decision made requires balancing the interest of different stakeholders.

Answer 13

Fairness

Question 14

the company readily and openly provides information. We proactively communicate our work status, priorities, and deadlines. We make clear the rationale for our recommendations. We convey changes immediately and consistently. Ensure timely, accurate disclosure on all material matters, including the financial situation, performance, ownership and corporate
governance.

Answer 14

Transparency