L2; The Core Principles in Business

Question 1

deals with daily operations and the process of leading, administrating, and directing a company.

Answer 1

Corporate Management

Question 2

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

Answer 2

Corporate Governance

Question 3

It essentially involves balancing the interests of a company’s many stakeholders such as shareholders, managers, customers, suppliers, financiers, government, and the community.

Answer 3

Corporate Governance

Question 4

is defined as someone who protects and takes care of the needs of others.

Answer 4

A steward

Question 5

under this theory company executives protect the interests of the owners or shareholders and make decisions on their behalf.

Answer 5

Stewardship Theory (of Corporate Governance)

Question 6

What is the sole objective of Stewardship Theory?

Answer 6

to create and maintain a successful organization so the shareholders prosper.

Question 7

requires that a CEO be trustworthy and willing to put personal gains aside for the good of the organization.

Answer 7

Stewardship governance

Question 8

Most of the benefits received from business ethics are the goals of?

Answer 8

corporate governance.

Question 9

Thus, we can say that ________ have a strong impact on strong governance and the implementation of business ethics can ensure good governance.

Answer 9

ethics

Question 10

is meant to run companies ethically in a manner that all stakeholders – creditors, distributors, customers, employees, society, and governments are dealt with in a fair manner.

Answer 10

Corporate governance

Question 11

Pillars of Corporate Governance

(enumerate)

Answer 11

1. Accountability
2. Fairness
3. Transparency

Question 12

refers to the obligation and responsibility to give an explanation or reason for the company’s actions and conduct.

Answer 12

Accountability

Question 13

Ensures that management is accountable to the Board and that Board is accountable to shareholders

Answer 13

Accountability

Question 14

an individual or institution (including a corporation) that legally owns one or more shares of stock in a public or private corporation.

Answer 14

Shareholders

Question 15

is any individual, group, or party that has an interest in an organization and the outcomes of its actions.

Answer 15

Stakeholders

Question 16

The primary stakeholders in a typical corporation are?

Answer 16

• its investors,
• employees,
• customers, and
• suppliers.

Question 17

refers to equal treatment, for example, all shareholders, including minorities should receive equal consideration for whatever shareholdings they hold.

Answer 17

Fairness

Question 18

Each decision made requires balancing the interest of different stakeholders.

Answer 18

Fairness

Question 19

Treat all team members, customers, and suppliers with respect and without bias. Provide effective redress for violations.

Answer 19

Fairness

Question 20

the company readily and openly provides information.

Answer 20

Transparency

Question 21

We proactively communicate our work status, priorities, and deadlines.

Answer 21

Transparency

Question 22

We make clear the rationale for our recommendations.

Answer 22

Transparency

Question 23

We convey changes immediately and consistently.

Answer 23

Transparency

Question 24

Ensure timely, accurate disclosure on all material matters, including the financial situation, performance, ownership and corporate governance.

Answer 24

Transparency

Question 25

EFFECTS OF GOOD CORPORATE GOVERNANCE

(enumerate)

Answer 25

GOOD CORPORATE GOVERNANCE = INCREASES CONFIDENCE OF STAKEHOLDERS ➨ ENCOURAGES NEW INVESTMENTS ➨ BOOSTS EMPLOYMENT OPPORTUNITIES ➨ BOOSTS ECONOMIC GROWTH ➨ SUSTAINABILITY