QUESTION 7 Select from the following a factor that does not relate to the reduction of agency costs. O tying managerial compensation to share price performance O having a board of directors.in the company O Existence of internal and external auditors O Paying executive directors huge bonuses that are not related to their performance QUESTION 8 Which of the following bodies are key regulators of Australian businesses; I Australian Prudential Regulatory Authority (APRA) If Industrial Protection Agency III Australian Securities Exchange IV Australian Securities and Investments Commission O I and IV 1, III and IV II, Ul and IV I, II, III and IV

QUESTION 7 Select from the following a factor that does not relate to the reduction of agency costs. O tying managerial compensation to share price performance O having a board of directors.in the company O Existence of internal and external auditors O Paying executive directors huge bonuses that are not related to their performance QUESTION 8 Which of the following bodies are key regulators of Australian businesses; I Australian Prudential Regulatory Authority (APRA) If Industrial Protection Agency III Australian Securities Exchange IV Australian Securities and Investments Commission O I and IV 1, III and IV II, Ul and IV I, II, III and IV

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question 1 (i) Examples of economic stakeholders areA. customers, suppliers, banks and other debt holdersB. the board membersC. shareholders and employeesD. Any stakeholder who has a direct or indirect stake in the company (ii) The board of directors isA. The only governance mechanism in an organisationB. Only a fiction according to the managerial definition of corporate governanceC. Have the power to monitor managerial opportunism onlyD. The main principal in an agency relationship (iii) Stakeholders areA. only those who have contributed something that is at risk with the firmB. only actors who have a legitimate stake in the corporationC. all the actors who may be influenced or who may influence a corporationD. None of the above (iv) Which ONE of the following would not be described as an institutional investor?A. BanksB. Pension fundsC. Insurance companiesD. Employees holding shares through an employee share scheme
19 From the options given below find the reason/s to regulate the inefficiency in accounting profession a. Regulation seeks to ensure that accounting services are of the right quality b. All the options c. Regulation is used to mitigate the potential impact of this inefficiency on the society d. Regulation is used to mitigate the potential impact of this inefficiency on the economy
19 From the options given below find the reason/s to regulate the inefficiency in accounting profession a. Regulation seeks to ensure that accounting services are of the right quality b. All the options c. Regulation is used to mitigate the potential impact of this inefficiency on the society d. Regulation is used to mitigate the potential impact of this inefficiency on the economy Clear my choice
46-In recent years, there is a great need of uniformity in accounting standards and practices because of O a. Multinational corporation O b. None of the options O c. Corporate internal policies O d. Local market demand
1.The IASB sets standards for: a. The private sector b. The public and private sectors c.The public, private and not-for-profit sector d. The private and not-for-profit sector 2. Which of these is not one of the benefits of a Conceptual framework? a. Reporting requirements will be more Consistent and logical b. It may allow firms to reduce their reported profit c. The need for specific accounting standards should be reduced d. Standard setting boards will be more accountable for their actions
11. What we the qualities of a CRO? 12. What are the qualities of a CFO? 13. What are the qualities of the CDO? 14. What are the roles and responsibilities of the CGO? 15. What is the significance of quality finarcial statements and Other financial reporting information? 16. What factors can lead to a company engaging in corporate misconduct of misrepresenting their financial position? 17. Explain the terms of the phrase "organizational ethical culture-) 18 What are the steps required to make an ethical deasoon7 19 What are situational ethics? 20 What are the principles of business ethics and conduct?
Please answer all 3 subparts Question 1 (i) 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. (ii) 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. (iii) 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…
QUESTION 9 Which ONE of the following is not a valid difference between executive and non-executive directors? O Executive directors tend to be paid considerably more than non-executive directors O Executive directors work full-time, whereas non-executive directors work part-time O Executive directors are involved in the management of the company, whereas non-executive directors are not expected to be involved in management. O Non-executive directors should be independent, whereas the executives will usually not be. QUESTION 10 Which of the following is not true about corporate governance? O corporate governance is about how organisations are run and directed O the board of directors is an essential part of the corporate governance framework O independence of board is necessary for good corporate governance O corporate governance has no relevance to maximisation of shareholder value Click Save and Submit to save and submit. Click Save All Answers to save all answers. ch 31 ASUS 19 f10…
18. Which of the following is not an incentive for company managers to exercise their accounting discretion? Select one: a. Accounting-based debt covenants b. Contests for corporate control c. Management compensation contracts d. Report a company's performance faithfully
You just been employed as the new Chief Executive Officer of a medium-sized company that listed on the Ghana Stock ExchangeAt the Board Meeting the chairman advised you and your management team to avoid what he termed Agency problem"Explain the term "Agency Problem" in corporate governance, and briefly explain four () wys by which the shareholders of company encourage its managers act in wwys which are consistent with the objective of value maximization
Question 9 Management of US Public Companies may provide a public report on the effectiveness of their organization's internal control over financial reporting, but management is not required to do so True False
"Part B" ABC Ltd has incorporated a bonus plan that rewards the board of directors (executive members) by providing a bonus of 3 per cent of reported profits. This is an Accounting-based incentive that has the advantage whichthe accounting results may be based on subunit or divisional performance."A well-informed labour market will motivate management to work to maximise the value of its firm. Underperformance might lead to dismissal and, if the labour market is efficient in disseminating data, a 'failed' manager might have difficulty attracting a position with comparable pay elsewhere." (Deegan, 2020) Requirement Explain whether the board of directors could be motivated to try to inflate reported profits?

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