D. Legal, Regulatory and Political Issue

Question 1

is defined as a legal system that controls and regulates the business activities of a certain country.

Answer 1

Regulation

Question 2

deals with external regulation (legal) and internal control of the corporation through legal means by its BOD.

Answer 2

Corporate Governance

Question 3

deals with an internal commitment of a company to behave ethically and satisfy the needs of its stakeholders.

Answer 3

CSR

Question 4

True or False:
Without regulation, any individual cannot enter into the market and disrupt the business environment by unscrupulous practices

Answer 4

False ; can enter into the market

Question 5

True or False:
Regulations serve to protect legitimate players with the industry who have engaged in the business properly and have coordinated with the regulating bodies to ensure legal and lawful operations.

Answer 5

True

Question 6

True or False:
Regulation is needed to produce revenues for the government to support national economic programs and policies.

Answer 6

True

Question 7

True or False:
Laws, Codes and Regulations (for good governance) :

(1) Ensure the basis for an effective corporate governance framework to promote transparency and fair markets that abide by the rules of law.

(2) The rights and equitable treatment of shareholders and key ownership

(3) Institutional investors, stock markets, and other intermediaries – to provide sound incentives throughout the investment chain and allow stock markets and other intermediaries to engage and contribute to good corporate governance.

(4) The role of stakeholders in corporate governance. The framework should recognize the rights of all stakeholders and promote active cooperation between corporations and stakeholders in sustaining financially sound companies.

(5) Disclosure and transparency – it should ensure timely and accurate disclosure and made available to investors and the public

(6) Board of Directors should ensure the company’s proper strategic guidance, effective monitoring of management by the board of directors and board’s accountability to the company and shareholders

Answer 7

ALL TRUE

Question 8

it should ensure timely and accurate disclosure and made available to investors and the public

Answer 8

Disclosure and Transparency

Question 9

should ensure the company’s proper strategic guidance, effective monitoring of management by the board of directors and board’s accountability to the company and shareholders

Answer 9

Responsibilities of the board

Question 10

It was approved in 1990 and prescribes the rules and regulations in the establishment and operation of corporations in the Philippines.

Answer 10

Philippines Corporation Code

Question 11

Philippines Corporation Code was revised in 2019 to improve the ease of doing business in the Philippines to fortify economic development:

State if true or false

(1) Removal of the minimum number of incorporators

(2) Required minimum P1M capital stocks on stock corporations

(3) Removal of the 50-year corporate term, a corporation can exist indefinitely

(4) Creation of one-person corporation

(5) Use of the internet to attend a meeting and filling of reports

(6) Power of SEC to remove disqualified directors of trustees

Answer 11

ALL TRUE