Module 7- Regulation and Governance

Question 1

What are the types of regulation?

4pts

Answer 1

• Government
• Self-regulation
• Private regulation
• Market force

Question 2

How is business involved in Canadian politics?

3pts

Answer 2

• Funding political parties, supporting candidates, expression views on issues

Question 3

What is lobbying?

Answer 3

Any attempt to influence directly or indirectly any government activity or influence any legislators, their staff, public administrators and members of regulatory agencies.

Question 4

What is corporate public affairs?

Answer 4

Corporate public affairs is a management responsible for monitoring and interpreting the governmental environment of the corporation/industry and making sure it doesn’t hurt the company. It’s like a company’s political team, working to protect its interests.

Question 5

What is corporate welfare?

Answer 5

When a business advocates for reduced government involvement but also seeks government assistance and protection

Question 6

What are owners also called?

2pt

What are the different types of owners?

5pts

Answer 6

• Also called shareholders or investors

Different types:
- entrepreneurs
- managers
- employees
- producers
- mutual, pension and investment funds

Question 7

Who are board of directors?

2pts

Answer 7

• Elected by the shareholders and is mandated to represent shareholder interest
• The board overseas all the affairs of the corporation including ethical conduct and social responsibility

Question 8

Oversees the internal and
external accounting auditing function to ensure that
financial statements accurately and appropriately
represent the condition of the corporation and that
regulated disclosures are made

Answer 8

Audit committee

Question 9

Processes, structures, and
relationships through which the shareholders, as
represented by a board of directors, oversee the
activities of the corporation.

Answer 9

Corporate governance

Question 10

What is the significance of “fiduciary duties” in the context of corporate governance?
●
a) They represent the optional guidelines that corporations may choose to follow in their interactions with stakeholders.
●
b) They refer to the legal and ethical obligations of directors and officers to act in the best interests of the corporation and its shareholders.
●
c) They grant unlimited authority to corporate executives to make decisions without any form of accountability or oversight.
●
d) They primarily focus on maximizing short-term profits for shareholders, even if it means compromising long-term sustainability or ethical considerations.

Answer 10

b) They refer to the legal and ethical obligations of directors and officers to act in the best interests of the corporation and its shareholders.

Question 11

What is the term for the practice where a corporation voluntarily embarks on a course of action to demonstrate its commitment to ethical behavior and social responsibility?
●
a) Lobbying
●
b) Privatization
●
c) Self-regulation
●
d) Corporate Public Affairs

Answer 11

c) self regulation

Question 12

Which of the following best defines corporate governance?
●
a) The exclusive right of shareholders to dictate all strategic decisions within a corporation.
●
b) The system of rules, practices, and processes by which a company is directed and controlled.
●
c) The legal obligation of a corporation to prioritize profits above all other considerations.
●
d) The complete absence of any external regulation or oversight of a corporation’s operations.

Answer 12

b) The system of rules, practices, and processes by which a company is directed and controlled.

Question 13

What is “responsible investing”?
●
a) It is an investment strategy that solely focuses on maximizing financial returns without any regard for ethical or social implications.
●
b) is the screening of investments by corporations or mutual and pension funds for their response to social or ethical responsibilities as well as their financial or economic actions. Investments are examined by a screen comprising negative or positive criteria, and best-of-sector.
●
c) It is an exclusively short-term investment approach that prioritizes immediate gains over long-term sustainability or social impact.
●
d) It is a highly speculative and unregulated investment practice that often carries extremely high levels of risk.

Answer 13

b) is the screening of investments by corporations or mutual and pension funds for their response to social or ethical responsibilities as well as their financial or economic actions. Investments are examined by a screen comprising negative or positive criteria, and best-of-sector.

Question 14

Ability of shareholders to vote on the remuneration of executives

Answer 14

Say- on pay

Question 15

more than one type of share or
stock with different voting rights and dividend payments is issued by a single corporation

a) dual class stock
b) non-voting shares
c) restricted shared

Answer 15

a) dual class stock