Question 1 (i) Stakeholder theory is best described as being based on the presumption that the corporation has direct concerns about its relationship with: A. The corporate regulator B. The directors of the corporation C. The shareholders of the corporation D. A wide range of groups that affect and/or are affected by the corporation (ii) Under the _________, both internal and external corporate governance mechanisms are intended to induce managerial actions that maximize profit and shareholder value. A. Shareholder theory B. Agency theory C. Stakeholder theory D. Corporate governance theory (iii) Which one of the following statements is untrue? A. Companies should set up a remuneration committee consisting of independent non-executive directors. B. The remuneration of the non-executive directors should be determined by the executives. C. The model articles provide that directors should not be permitted to determine their own levels of remuneration. D. Remuneration committees should consist of at least 3 directors, although in smaller companies, this may be reduced to 2.
Please answer all 3 subparts
Question 1
(i) Stakeholder theory is best described as being based on the presumption that the corporation has direct concerns about its relationship with:
A. The corporate regulator
B. The directors of the corporation
C. The shareholders of the corporation
D. A wide range of groups that affect and/or are affected by the corporation
(ii) Under the _________, both internal and external corporate governance mechanisms are intended to induce managerial actions that maximize profit and shareholder value.
A. Shareholder theory
B. Agency theory
C. Stakeholder theory
D. Corporate governance theory
(iii) Which one of the following statements is untrue?
A. Companies should set up a remuneration committee consisting of independent non-executive directors.
B. The remuneration of the non-executive directors should be determined by the executives.
C. The model articles provide that directors should not be permitted to determine their own levels of remuneration.
D. Remuneration committees should consist of at least 3 directors, although in smaller companies, this may be reduced to 2.
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