Lesson 2

Question 1

What’s under the corporate system?

Answer 1

1. Corporate Management
2. Corporate Governance

Question 2

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

Answer 2

Corporate Management

Question 3

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

Steward

Question 5

Under the _______ ____, company executives protect the interests of the
owners or shareholders and make decisions on their behalf.

Answer 5

Stewardship Theory

Question 6

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

Answer 6

Stewardship Governance

Question 7

A steward is defined as someone who protects and takes care of the needs of
others. Under the stewardship theory, company executives protect the interests of the
owners or shareholders and make decisions on their behalf. Their sole objective is to
create and maintain a successful organization so the shareholders prosper. Stewardship
governance requires that a CEO be trustworthy and willing to put personal gains aside
for the good of the organization.

Answer 7

Stewardship Theory of Corporate Governance

Question 8

Most of the benefits received from _____ ___ are the goals of corporate
governance. Thus, we can say that ____ have a strong impact on strong governance
and the implementation of ____ _____ can ensure good governance.

Answer 8

Business Ethics

Question 9

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 9

Corporate Governance

Question 10

Pillars of Corporate Governance

Answer 10

1. Accountability
2. Fairness
3. Transparency

Question 11

refers to the obligation and responsibility to give an explanation
or reason for the company’s actions and conduct. Ensures that management is
accountable to the Board and that Board is accountable to shareholders

Answer 11

Accountability

Question 12

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

Answer 12

Shareholders

Question 13

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

Answer 13

Stakeholders

Question 14

The primary stakeholders in a
typical corporation are its _______, _______,_______, and ______.

Answer 14

investors, employees, customers, and suppliers.

Question 15

refers to equal treatment, for example, all shareholders, including
minorities should receive equal consideration for whatever shareholdings they
hold. Each decision made requires balancing the interest of different stakeholders.

Answer 15

fairness

Question 16

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

Answer 16

Fairness

Question 17

the company readily and openly provides information. We
proactively communicate our work status, priorities, and deadlines. We make
clear the rationale for our recommendations. We convey changes immediately
and consistently. Ensure timely, accurate disclosure on all material matters,
including the financial situation, performance, ownership and corporate
governance.

Answer 17

Transparency