Chapter 3 (definition terms) Flashcards
System of stewardship and control to guide organizations in fulfilling their long term economic, moral ,legal and social obligations toward their shareholders
Corporate governance
The governing body elected by the stockholders that exercises the corporate powers of a corporation conducts all its business and control its properties
Board of directors
A group of executives given the authority by the board of directors to implement the policies it has laid down in the conduct of business of the corporation
Management
A person who is independent of management and the controlling shareholder 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 responsibility as a director
Independent director
A director was executed responsibility of day to day operations of a part or the whole of the organization
Executive director
A director who has no executive responsibility and does not perform any work related to the operation of the corporation
Non-executive director
A group of corporation that has diversified business activities invalid industries whereby the operations of such business are controlled and managed by a parent corporate entity
Conglomerate
A process design and affected by the board of directors senior management and all levels of personal to provide reasonably assurance on the achievement of objectives through efficient and effective operations.
Reliable complete and timely financial and management information: and the compliance with applicable laws regulations and organization policies and procedure
Internal control
A process affected by an entities board of directors management and other personnel applied in strategy setting in across the enterprise that is designed to identify potential events that may affect the entity manage risk to be within its risk appetite and provide reasonable assurance regarding the achievement of entity objective
Enterprise risk management
Share cover the company subsidiaries as well as affiliates and any party that the company exerts direct or indirect control over or that exerts direct or indirect control over the companies
Companies directors officers shareholders and related interest and their close family members as well as corresponding persons in affiliated companies
Related party
A transfer of resources services or obligations between a reporting entity and a related party regardless of whether a price is charge it should be interpreted broadly to include not only transactions that are entered into with related parties but also outstanding transactions that are entered into with an unrelated party that subsequently becomes a related party
Related party transactions
Any individual organization or society at large who can either affect are we affected by the company strategies policies business decisions and operations in general
This includes among others customers creditors employees suppliers investors as well as the government and community in which its operates
Stakeholders
