Chapter 8

Question 1

is a process that aims to allocate corporate resources in a manner that maximizes value for all stakeholders—shareholders, investors, employees, customers, suppliers, environment and the community at large and holds those at the helms to account by evaluating their decisions on transparency, inclusivity, equity and responsibility.

Answer 1

Corporate governance

Question 2

The World Bank defines ______________ as the exercise of political authority and the use of institutional resources to manage society’s problems and affairs.

Answer 2

Governance

Question 3

can be described as organizations that buy and sell securities in large volume of share quantities or amounts that make them qualify sometimes for preferential treatment and lower commission cuts.

Answer 3

Institutional investors

Question 4

is an investment account open to a narrow range of investors that on a wider range of investment and trading activities in addition to traditional long-term investment funds.

Answer 4

hedge fund

Question 5

refers to a financial institution that helps out corporations and governments in raising capital by underwriting and acting as the agent in the issuance of both equity and debt securities.

Answer 5

Investment banking

Question 6

refers to investors’ money being pooled together from the sale of a fixed number of shares in a trust issue in its first offering.

Answer 6

Investment trust

Question 7

is another institutional investor that is a professionally managed type of collective investment scheme that pools money from many investors and invests typically in investment securities which includes, stocks, bonds, short-term money market instruments, other mutual funds and securities, including commodities such as precious metals.

Answer 7

Mutual Fund

Question 8

is a collection of assets forming a separate legal entity that came into being from the contributions to a pension plan for the exclusive purpose of financing pension plan benefits.

Answer 8

Pension Fund

Question 9

refers to listing of equity shares of a company in more than one stock exchange in different countries.

Answer 9

Cross listing

Question 10

It is an organization focusing on promoting growth and prosperity, spreading business expertise and advocate for international business

Answer 10

International Chamber of Commerce (ICC)