Good Governance Quiz 2 (Part 4)

Question 1

in the study of corporate governance, it is important to understand a company’s “_____________”, or where the power lies.

Answer 1

Governance Structure

Question 2

may be describe as processes and interactions, involving power and authority that influence decisions made for benefit of an individual, group or organization.

Answer 2

Corporate Politics

Question 3

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

Answer 3

Committees

Question 4

In publicly listed companies, the following committees are required by regulating bodies: (Types of Committees)

Answer 4

1. Audit Committee
2. Remuneration Committee
3. Nomination Committee

Question 5

as a result of corporate meltdowns, this committee has become a non negotiable aspect of good governance. the main objective of “__________” is to oversees accounting and financial reporting processes and results. they make sure that internal and external audits are carried out with integrity.

Answer 5

Audit Committee

Question 6

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.

Answer 6

Remuneration Committee

Question 7

to assure an effective working board, the directors on board must be independent thinkers, including its executive directors. the “__________” should nominate the right mix of board members to ensure objectivity, independence and expertise.

Answer 7

Nomination Committee

Question 8

In publicly listed companies, the following committees are required by regulating bodies:

Answer 8

1. Commitment
2. Expertise
3. Unity
4. Independence
5. Networking

Question 9

“___________” in terms of time spent and in the achievement of strategic objectives.

Answer 9

Commitment

Question 10

Possess strong technical knowledge of the industry or business;

Answer 10

Expertise

Question 11

ability to work and get along with fellow board members; collaborating effectively in getting the group to agree on resolutions.

Answer 11

Unity

Question 12

challenging the status quo and critically questioning perspectives.

Answer 12

Independence

Question 13

providing resource connections for possible alliances in business development.

Answer 13

Networking

Question 14

one of the purposes of “___________” is to continuously improve best practices and see if they are functioning effectively. the board is tasked to do evaluation internally and/or through a third party to ensure compliance within the legal and regulatory framework.

Answer 14

Board Evaluation

Question 15

are unique in the sense that there is an emotional component to it. Schmid, Rouvinez and Poza (2014) argued that the objective of “______________” the sustainable development of the economic value and emotional value (Well-being) of the enterprise

Answer 15

Family Corporation

Question 16

“_____________“is manifested through its revenue, while “_________________” refers to the emotions that create an attachment to the company. in other words, emotions must be managed before good corporate governance can even progress.

Answer 16

1. Higher Economic Value
2. Emotional Value