Week 7

Question 1

Which of the following is NOT a likely consequence of insider trading?

Question 1Select one:

A.
Shareholders may have to incur large losses

B.
Employees of the firm stand to lose their jobs

C.
Suppliers may suffer damage to their reputation

Answer 1

c.Suppliers may suffer damage to their reputation

Question 2

Which of the following is NOT an aspect that would bring benefits as a result of good corporate governance?

Question 2Select one:

A.
Self-assessments of employees to reflect their effectiveness in the corporation

B.
Corporations’ using the ‘shareholder model’ should shift to ‘stakeholder model’

C.
Greater government involvement and presence to enhance economic reforms

Answer 2

A.Self-assessments of employees to reflect their effectiveness in the corporation

Question 3

“Accountability” as a component of corporate governance serves to ___________.

Answer 3

align management actions with mission and vision.

Question 4

According to Ferrell, 2011 and Thorne, 2010, the element that corporations hope to continuously secure from stakeholders through corporate governance is ____________.

Answer 4

trust

Question 5

Which statement regarding the Malaysian Code of Corporate Governance is TRUE?

Answer 5

composed of two parts, namely the principles and the best practices sections. The Code, which aims to achieve optimum governance framework, is divided into two parts:

Principles of corporate governance; and

Best practices of corporate governance.