Which of the following statements is most likely to lead to an effective code of ethics in a corporate governance? A. If leadership reflects management's personal values. B. When the unwritten code of ethics is effective in influencing behaviour. C. If the rules on ethical behaviour in the code of ethics are prescriptive and explicit. D. When management behavior is congruent with the principles of the corporate code of ethics.
Question 1
(i) Which of the following statements is most likely to lead to an effective code of ethics in a corporate governance?
A. If leadership reflects management's personal values.
B. When the unwritten code of ethics is effective in influencing behaviour.
C. If the rules on ethical behaviour in the code of ethics are prescriptive and explicit.
D. When management behavior is congruent with the principles of the corporate code of ethics.
(ii) Corporate governance in emerging market firms is important from the investors' point of view:
A. because effective corporate governance might make up for country weakness in the overall national governance system.
B. because many companies are held by family businesses.
C. because effective corporate governance requires the agents to work on behalf of shareholders.
D. because family businesses do not follow the law.
(iii) Which one of the following is NOT a function of the board of a large public company?
A. the selection of auditors.
B. monitoring the CEO's performance.
C. Managing the day to day operations of the corporation.
D. The oversight of management in the application of policies and guidelines about the pricipal risks faced by the company.
(iv) Which of the following statement is correct?
A. All members of the audit committee should be independent non-executive directors.
B. Members of the audit committee should be appointed by the board, on the recommendation of the nomination committee in consultation with the audit committee chairperson.
C. Members of the audit committee shall be appointed by the audit commitee chairperson
D. Appointments to the commitee are made by the board upon consultation of the audit committee chairperson.
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