A System of Rights and Duties

What is the primary focus of corporate governance?

• A. Generating higher profits

• B. Distributing rights and responsibilities within an organization

• C. Reducing employee turnover

• D. Enhancing product design

Which of the following best describes corporate governance?

• A. A marketing strategy

• B. An investment plan

• C. A system of rules, practices, and processes for governing corporations

• D. A tool for financial accounting

Who are considered stakeholders in corporate governance?

• A. Shareholders only

• B. Only managers and employees

• C. All parties involved including shareholders, executives, customers, and government

• D. Only the board of directors

Which of the following is NOT a positive impact of good corporate governance?

• A. Raises market trust and share price

• B. Increases corruption and mismanagement

• C. Builds strong brand reputation

• D. Enhances company resilience

Why is transparency important in corporate governance?

• A. It increases market volatility

• B. It allows manipulation of stakeholders

• C. It ensures fair and proper decision-making

• D. It hides internal company operations

What does the concept of a 'balanced company' refer to?

• A. A company that avoids taking risks

• B. A company with equal profits and losses

• C. A company maintaining strong internal and external relationships

• D. A company that reduces employee rights

Which of the following actions does good governance help reduce?

• A. Brand awareness

• B. Stakeholder collaboration

• C. Mismanagement and waste

• D. Strategic planning

According to the chapter, corporate decisions should ultimately serve:

• A. Government interests

• B. Employee welfare

• C. The interest of the enterprise

• D. The majority shareholders

What makes decision-making in a balanced company challenging?

• A. Lack of profit

• B. Diverse and sometimes conflicting stakeholder interests

• C. Absence of a board of directors

• D. No access to technology

Why is it necessary to evaluate the contributions of different stakeholders?

• A. To reduce their involvement

• B. To fairly compensate them and sustain value creation

• C. To make short-term profits

• D. To avoid regulatory fines