Question 1 (i) Which of the following statements is true? A. Conflicts of interests between management and stakeholders can result in bankruptcies or major frauds. B. It is the responsibility of internal audit to design and monitor controls that reasonably assure that objectives are met. C. Corporate Governance addresses the principal-agent relationship between management and directors on the one hand and the relationship between the company and suppliers on the other. D. The management board apprves the mission, vision, objectives and strategy of the entity. (ii) Which one of the following is NOT a reason for having board committees? A. An increase in the accountability of the board to the firm by reducing individual free-riding and enabling outside directors. B. A better performance of the board of directors by allowing a better monitoring through greater separation from management. C. Bringing a focus and appropriate expertise and specialisation to the consideration of a Board isssue. D. Allows the board members to dissipate the discharge by the board and its directors of their duties and responsibilities. (iii) Which of the following are specifically required by law to become a public company director? A. To be fully certified as a company director. B. To be at least 70 yeasr old. C. To have specific qualifications in appropriate business disciplines. D. To be a person not currently disqualified frm managing a corporation
Please answer all 3 subparts
Question 1
(i) Which of the following statements is true?
A. Conflicts of interests between management and stakeholders can result in bankruptcies or major frauds.
B. It is the responsibility of internal audit to design and monitor controls that reasonably assure that objectives are met.
C. Corporate Governance addresses the principal-agent relationship between management and directors on the one hand and the relationship between the company and suppliers on the other.
D. The management board apprves the mission, vision, objectives and strategy of the entity.
(ii) Which one of the following is NOT a reason for having board committees?
A. An increase in the accountability of the board to the firm by reducing individual free-riding and enabling outside directors.
B. A better performance of the board of directors by allowing a better monitoring through greater separation from management.
C. Bringing a focus and appropriate expertise and specialisation to the consideration of a Board isssue.
D. Allows the board members to dissipate the discharge by the board and its directors of their duties and responsibilities.
(iii) Which of the following are specifically required by law to become a public company director?
A. To be fully certified as a company director.
B. To be at least 70 yeasr old.
C. To have specific qualifications in appropriate business disciplines.
D. To be a person not currently disqualified frm managing a corporation
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