FP II Unit 2 2.01.2.02

The policies and procedures used by the board of directors or owner to manage a corporation are known as:

• corporate bylaws

• corporate welfare

• corporate take over

• corporate governance

Mechanisms put in place to make sure corporate governance will be effective are referred to as:

• rules

• transparency

• risk mitigation

• checks and balances

People or entities who have a financial interest in a business or can be monetarily affected by the decisions of a business are referred to as:

• mediation experts

• inquisitive agents

• stakeholders.

• consultants

What are the four principles of corporate governance?

• accountability, fairness, transparency, and profitability

• B.

  accountability, fairness, profitability, and independence

• accountability, fairness, transparency, and independence

• accountability, profitability, transparency, and independence

A fundamental challenge faced by many board members is failing to possess a strong understanding of the:

• corporate culture

• corporate governance

• fellow board members

• roles and responsibilities

The fundamental legal duty requiring a board member to participate actively in making decisions on behalf of the organization and to exercise his or her best judgment while doing so is referred to as:

• care

• loyalty

• reliability

• obedience

 

Members of a board of directors should refrain from all involvement in any way with a business competitor. This is necessary to avoid:

• a law suit

• business losses

• a conflict of interest

• friction within the board

A responsibility of a board of directors involves planning expenses vs. revenue and using these numbers to create a projected financial blueprint for the company. This activity is referred to as

• debating

• budgeting

• asset management

• strategic marketing

Which principle of corporate governance protects shareholders' rights and makes sure the business treats all shareholders equitably?

• accountability

• fairness

• independence

• transparency

The fundamental legal duty requiring a board member to put the interests of the organization before their personal and professional interests when acting on behalf of the organization in a decision-making capacity is the duty of

• care

• loyalty

• obedience

• reliabilty