TOPIC 1

Question 1

what is corporate governance

Answer 1

corporate governance is how power is exercised in the management of economic and social resources for sustainability purposes

Question 2

What is corporate governance?

Answer 2

application of a system of principles, policies procedures and clearly defined responsibilities & accountability used by stakeholders to limit conflict of interest

Question 3

pillars ofngood corporate governance

Answer 3

1.Accountability
2. efficiency and effectiveness
3. Probity and integrity
4. Responsibility
5. Transparent and openness

Question 4

Reasons for corporate governance

Answer 4

Privatisation of corporations
Requirements by regulatory bodies
collapse of big organisations
Corprate governance seen as key success factor
vocal shareholders on matters regarding transparency

Question 5

Advantages of a corporation

Answer 5

Corporations can raise capital
You don’t need to have the know-how of running a business
ownership interests are transferrable

Question 6

Disadvantages of a corporation

Answer 6

Agency problem that arises from the separation of owners and managers
corporations are highly regulated as compared to partnerships