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Question: TWO MULTIPLE CHOICE QUESTIONS
1.) To ensure the company has an effective corporate
governance str…



TWO MULTIPLE CHOICE QUESTIONS

1.) To ensure the company has an effective corporate
governance structure, and in particular-an effective ‘compliance
and ethics’ program in accordance with the SGO, an intergrated
framework must be in place for:

A.) Internal Controls (IC)

B.) Enterprise Risk Management (ERM)

C.) Both (A) and (B)

2.) Which of the following would appear to be the best
indication that a company had ‘good’ corporate governance in
place:

A.) Company which goes beyond Cadbury, as they have more NEDs
than EDs on the board, with most of the NEDs being INEDs.

B.)Company with an equal number of EDs and NEDs on the board,
with a CEO ( who also is a member of the BOD and Chairman) who is
compensated in large part by share options, and so is paid less
than half the industry average in salary.

c.) Company which has never been the subject of an investigation
by regulators and which has never been prosecuted by the state or
sued by shareholders.

Expert Answer


1. Both Internal Control and Enterprise Risk Management should be in placefor an corporate governance structure. ERM is the method of … view the full answer

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