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good governance > chapter 2 > Flashcards

chapter 2 Flashcards

1
Q

is a legal entity created by an individual or group of shareholders who have
ownership of the corporation( through shares of stocks issued by the corporation) to engage in
business activities.

A

corporation

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2
Q

Are legal entities and are sometimes defined as “__________’’. Corporations are allowed to
perform functions that humans make such as

A

“legal persons”

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3
Q

-legal right to produce or sell something that have invented for a specific period of time.

A

Patents

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4
Q

-once registered, that same symbol or series of words cannot be used by any other
organization.

A

Trademarks

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5
Q

And engaging in any business activities
It has indefinite life span that can survive from generation to generation

A

trademarks

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6
Q

entity- a company or organization that has legal rights and responsibilities. i.e. the right to
make contracts and the responsibility to pay debts.

A

legal entity

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7
Q
  • is a responsible being in the eyes of the law and can be used for damages if the performance
    of the agreement is not met.
A

legal entity

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8
Q

There is no minimum number of incorporators( directors)
But shall not have more than 20 incorporators

A

philippine corporation

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9
Q

Each of the incorporators must have one share of stocks.

A

philippine corporation

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10
Q
  • Granted a perpetual corporate term( previously 50- year term)
A

philippine corporation

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11
Q
  • No Required subscribe/ paid-up capital and residency of incorporators
    to keep with global standards.
A

philippine corporation

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12
Q

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

A

*One Person Corporation (OPC)

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13
Q

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

A

Corporate governance

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14
Q

governance essentially involves balancing the interests of a
company’s many stakeholders, such as shareholders, senior
management executives, customers, suppliers, financiers, the
government, and the community.

A

Corporate governance

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15
Q

structures were put into place to protect the various stakeholders of corporations and prevent corporate scandals
and or failures from happening.

A

Corporate governance

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16
Q

help guide a company’s decisions and play a big
part in deciding if the business will be successful. It provide a clear direction for
the company and help in setting priorities and goals, as well as making informed
decisions.

A
  • Business aims and objectives
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17
Q

provide a clear direction for the company and help in setting priorities and goals,
as well as making informed decisions.

A
  • Business aims and objectives
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18
Q

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

A
  • Business aims
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19
Q

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

A
  • Business objectives
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20
Q

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

A

Mission statement

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21
Q

-outlines the company’s long-term goals and aspirations for
the future in terms of its long-term growth and impact on the world

A
  • Vision Statement
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22
Q

*Objectives give the business a clearly defined target.

A

BUSINESS OBJECTIVES

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23
Q

These are Plans that can then be made to achieve
targets.

A

BUSINESS OBJECTIVES

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24
Q
  • This can motivate the employees.
A

BUSINESS OBJECTIVES

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25
Q

*It also enables the business to measure the progress
toward its stated aims.

A

BUSINESS OBJECTIVES

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26
Q

goal is well defined, with a clear outcome in mind it should answer the questions of what you achieve, who is involved, and where it will happen.

A

specific

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27
Q

goal has a clear criteriea for success and a timeline for achieving it. this allows you tu track your progress along the way and

A

measurable

28
Q

goal is one that is possible to achieve given the resources and constraints you have

A

achievable

29
Q

goal is one that is achievable and aligned with your overall vision and long term objectives

A

realistic

30
Q

goal has a clear timeline for completion, with a start and end date. this helps to provide motivation and a sense of urgency to achieve the goal.

A

time-bound

31
Q

– a 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.

A

survival

32
Q

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

A

profit maximization

33
Q

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.

A

product satisficing

34
Q

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.

A

sales growth

35
Q

make a profit of $24,000 by the next financial year.
* The objective for this aim would be: make profits of $2,000 for the next 12
months.
- increase revenue in the next five years.

A

financial aim

36
Q

_____________
* Objectives for this aim would be as follows:
* Increase product awareness
* Acquire new customer
* Create or improve digital platform
* Increase conversion rate
* Reduce overhead costs

A

financial aim

37
Q

____________________
Become the most sustainable company in the industry.
* Objectives for this aim would be as follows:
* Use recycled raw materials
* Use production methods that reduce CO2 emissions

A

non-financial aim

38
Q

– 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.

A

Ethical and socially responsible objectives

39
Q

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.

A

Public sector corporations

40
Q

that monitor or control private sector activities have objectives that are to ensure that the business they are monitoring complies with the laws laid down.

A

Public sector organizations

41
Q

– 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.

A

Health care and education establishments

42
Q

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

A

Charities and voluntary organizations

43
Q
  • A business may achieve an objective and will need to move onto
    another one (e.g. survival in the first year may lead to an objective of
    increasing profit in the second year).
A

Changing Objectives

44
Q

The competitive environment might change, with the launch of new
products from competitors.

A

Changing Objectives

45
Q

Technology might change product designs, so sales and production
targets might need to change.

A

Changing Objectives

46
Q

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

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

A

CEO (CHIEVE EXECUTIVE ORDERS)

47
Q

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

A

Chairman of the Board-

48
Q
  • This is the best entity in steering the company’s strategic direction and evaluating its performance. As a director, 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.
A

Board of Directors

49
Q

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.

A

Shareholders

50
Q
  • Any group of people who are affected by how a corporation operates (i.e., employees, suppliers, government and society among others).
A

Stakeholders

51
Q

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

A

Independent director

52
Q

Are individuals who are not part of the management but related to
a certain aspect of the company, such as being a supplier, family
representative, friend, adviser or shareholder

A

Non-executive director

53
Q

Hold a particular executive position inside the organization, such as
CEO or other senior executive position such as the vice president.

A

Executive director

54
Q

is managed by directors and officers. Directors act as a group known as
a board of directors. Corporations also have officers who are appointed by and
receive their powers from the board.

A

corporation

55
Q
  • usually makes decisions on corporate policy and operations.
A

PRESIDENT

56
Q
  • assumes the president’s function in his or her absence.
    Also often be responsible for running part of the corporation’s business or
    operations.
A

VICE PRESIDENT

57
Q

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

A

SECRETARY-

58
Q

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

A

treasurer

59
Q

are formed because board work can be done effectively.

By focusing and discussing particular issues separately from general board meetings, the timenmanagement of directors is optimized.

A

the committee / committees

60
Q

Note: It is advisable and recommended that the chairman of
these committees be independent directors so that they truly
perform their oversight roles according to the requirements of
the regulating bodies.

A

the committee / committees

61
Q

as a result of corporate meltdowns, this
committee has become a nonnegotiable aspect of good governance.
The main objective of this committee is to oversee accounting and
financial reporting processes and results. They make sure that
internal and external audits are carried out with integrity.

A

audit committee

62
Q

this committee is responsible for
identifying compensation and benefit plans for directors and senior
executives through performance appraisals. Excessive compensation
packages during economic downturns or financial crises warrant a
closer investigation of the rationale behind said compensation.

A

remuneration committee

63
Q

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

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

A

nomination committee

64
Q

Note: other committees can be formed by the board as part of good governance but this will depend on the need and circumstances of a company.

A

nomination committee

65
Q

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

A

HEALTHY CORPORATION
CHECKLIST

66
Q

The checklist contains a
list of questions to ask
about your corporation.

A

HEALTHY CORPORATION
CHECKLIST

67
Q

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

A

HEALTHY CORPORATION
CHECKLIST

good governance (5 decks)

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