Quiz 2

Question 1

legal entity created by an individual or group of shareholders.

Answer 1

Corporation

Question 2

Are legal entities and are sometimes defined as ___________

Answer 2

Legal persons

Question 3

Corporations are allowed to
perform functions that humans make such as:

Answer 3

• Buying and selling properties
• Owning copyrights
• Patents
• Trademarks
• And engaging in any business activities
• It has indefinite life span that can survive from generation to generation

Question 4

responsible being in the eyes of the law

Answer 4

Legal entity

Question 5

company or organization that has legal rights and responsibilities.

Answer 5

Legal entity

Question 6

In Philippines There is no minimum number of?

Answer 6

incorporators( directors)

Question 7

But shall not have more than?

Answer 7

20 incorporators

Question 8

Each of the incorporators must have _____ share of stocks.

Answer 8

one

Question 9

Granted a perpetual corporate term( previously ___ year term)

Answer 9

50

Question 10

paid-up capital and residency of incorporators to keep with global standards.

Answer 10

No Required Subscribe

Question 11

allows a single person to form a corporation without board of directors or shareholders

Answer 11

One Person Corporation (OPC)

Question 12

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

Answer 12

Corporate governance

Question 13

essentially involves balancing the interests of a
company’s many stakeholders.

Answer 13

Corporate governance

Question 14

help guide a company’s decisions and play a big
part in deciding if the business will be successful

Answer 14

Business aims and objectives

Question 15

are the broad, general goals that summarize what a company
wants to achieve

Answer 15

Business aims

Question 16

are specific, measurable targets that help a company
achieve its aims.

Answer 16

Business objectives

Question 17

defines the organization’s business, its objectives and how it will reach these objectives

Answer 17

Mission statement

Question 18

outlines the company’s long-term goals and aspirations

Answer 18

Vision statement

Question 19

This can motivate the employees

Answer 19

Business objectives

Question 20

Business objectives (Main Objectives)

Answer 20

• Survival
• Profit Maximization
• Profit satisficing
• Sales growth

Question 21

short-term object short-trembly for a small business just
starting out, or when a new firm enters the market or at a time of crisis

Answer 21

Survival

Question 22

try to make the most profit possible – most like to be
the aim of the owners and shareholders.

Answer 22

Profit Maximization

Question 23

try to make enough profit to keep the owners
comfortable – probably the aim of smaller businesses whose owners do
not want to work longer hours.

Answer 23

Profit Satisficing

Question 24

where the business tries to make as many sales as possible.
This may be because the managers believe that the survival of the business
depends on being large. Large businesses can also benefit from economies
of scale.

Answer 24

Sales Growth

Question 25

Alternative Aims and Objectives

Answer 25

• Ethical and socially responsible objectives • Public sector corporations • Public sector organizations • Health care and education establishments • Charities and voluntary organization

Question 26

organizations like the Co-op or the Body Shop have objectives that are based on their beliefs on how one should treat the environment and people who are less fortunate.

Answer 26

Ethical and socially responsible objectives

Question 27

are run to not only generate a profit but provide a service to the public. This service will need to meet the needs of the less well-off in society or help improve the ability of the economy to function: e.g. cheap and accessible transport service.

Answer 27

Public sector corporations

Question 28

their objectives are to provide a service – most private schools for instance have charitable status. Their aim is the enhancement of their pupils through education.

Answer 28

Health care and education establishments

Question 29

their aims and objectives are led by the beliefs they stand for.

Answer 29

Charities and voluntary organizations

Question 30

Importance of business aims and objectives

Answer 30

• clarity of direction • measure company's success • increases motivation • improves decision-making

Question 31

KEY PLAYERS IN CORPORATE GOVERNANCE

Answer 31

•CEO •CHAIRMAN OF THE BOARD •BOARD OF DIRECTOR •SHAREHOLDERS •STAKEHOLDERS

Question 32

the person responsible for leading and managing the entire organization in achieving its organizational goals.

Answer 32

CEO

Question 33

It is the duty of the _______ to collaborate with the board for the overall direction of the company.

Answer 33

CEO

Question 34

should not only provide leadership of the board but also play an important role in the governance practices of the company.

Answer 34

Chairman of the Board

Question 35

This is the best entity in steering the company’s strategic direction and evaluating its performance

Answer 35

Board of Directors

Question 36

As a _________, questions must be asked during board meetings to make sure decisions made by the company will be for the best interest of the company in the long term.

Answer 36

Director

Question 37

Considered owners of the company through their ownership/ holdings of stock shares, this group actively seeks to maximize stock price increase over a period of time.

Answer 37

Shareholder

Question 38

Any group of people who are affected by how a corporation operates

Answer 38

Stakeholder

Question 39

DIRECTORS CLASSIFICATION

Answer 39

• Independent director • Non-executive director • Executive director

Question 40

individuals who have no connection with the company and are free from any relationship which may be considered a conflict of interest

Answer 40

Independent director

Question 41

individuals who are not part of the management but related to a certain aspect of the compan

Answer 41

Non-executive director

Question 42

Hold a particular executive position inside the organization,

Answer 42

Executive director

Question 43

A corporation is managed by?

Answer 43

directors and officers

Question 44

Directors act as a group known as?

Answer 44

board of directors

Question 45

Corporations also have officers who are appointed by and receive their powers from the?

Answer 45

Board

Question 46

DUTIES OF DIRECTORS

Answer 46

• **Act in the best interest** of those they serve • **Owe a duty of care to their corporation**. Stays informed about corporate developments and makes informed decisions • **Be loyal** to the corporation. • **Manage the corporation’s business and affairs** and has the authority to exercise all of the corporation’s powers • **Responsible for making major business and policy decisions**, and the officers are responsible for carrying out the board’s policies and for making the day-to-day decisions

Question 47

CORPORATE OFFICERS & THEIR DUTIES

Answer 47

PRESIDENT VICE PRESIDENT SECRETARY TREASURER

Question 48

usually makes decisions on corporate policy and operations.

Answer 48

PRESIDENT

Question 49

assumes the president’s function in his or her absence. Also often be responsible for running part of the corporation’s business or operations.

Answer 49

VICE PRESIDENT

Question 50

makes and keeps the corporate books and records. This includes keeping the records of directors’ and shareholders’ meetings and the corporation’s stock record book.

Answer 50

SECRETARY

Question 51

also has the authority to send out notices to corporate meetings and keep a register of the names and addresses of the stakeholders. also keeps the corporate seal

Answer 51

SECRETARY

Question 52

keeps the corporation’s money and is responsible for taxes, financial reports

Answer 52

TREASURER

Question 53

are formed because board work can be done effectively. By focusing and discussing particular issues separately from general board meetings, the time management of directors is optimized.

Answer 53

Committees

Question 54

DIFFERENT COMMITEES

Answer 54

• AUDIT COMMITTEE • REMUNERATION COMMITTEE • NOMINATION COMMITTEE

Question 55

as a result of corporate meltdowns, this committee has become a nonnegotiable aspect of good governance.

Answer 55

• AUDIT COMMITTEE

Question 56

oversee accounting and financial reporting processes and results. They make sure that internal and external audits are carried out with integrity.

Answer 56

• AUDIT COMMITTEE

Question 57

responsible for identifying compensation and benefit plans for directors and senior executives through performance appraisals.

Answer 57

REMUNERATION COMMITTEE

Question 58

Excessive compensation packages during economic downturns or financial crises warrant a closer investigation of the rationale behind said compensation.

Answer 58

• REMUNERATION COMMITTEE

Question 59

to assure an effective working board, the directors on board must be independent thinkers, including executive directors.

Answer 59

• NOMINATION COMMITTEE

Question 60

should nominate the right mix of board members to ensure objectivity, independence, and expertise.

Answer 60

nomination committee

Question 61

allows you to check your corporation’s compliance with your rule book and the law.

Answer 61

The healthy corporation checklist

Question 62

contains a list of questions to ask about your corporation.

Answer 62

The healthy corporation checklist

Question 63

Each question has a tick box to record your corporation’s compliance, helping you to identify the areas that need attention

Answer 63

The healthy corporation checklist