DON HONORIO VENTURA STATE UNIVERSITY
Cabambangan, Villa de Bacolor 2001, Pampanga,
Philippines
COLLEGE OF BUSINESS STUDIES
Activity on Corporate Governance Responsibilities and Accountabilities Chapter 2
Specific Instructions:
1. Answer the following Review Questions accordingly based on our discussion presentation
on Chapters 2 Corporate Governance Responsibilities and Accountabilities.
2. Answer it in WORD format as an Attachment in our Google Classroom on 4 th May 2021
at 12:00 o’clock in the afternoon or lunchtime.
3. Answer it in this format Font: Times New Roman; Font size: 12; Spacing is 1.5.
4. When you attached it on our Google Classroom, please do not forget to “Mark as Done”
OR “Turned in” your answer so that it will not be Missing.
5. Please follow my instructions carefully and precisely. No Extensions.
DISCUSSION QUESTIONS:
1. What is the essence of any system of corporate governance?
The aim of the corporate world is to promote law-abiding behavior in terms of
transparency and accountability, as well as to adhere to uniform standards and procedures.
It also gives the board of directors and management the flexibility to move their company
forward while maintaining effective accountability.
2. To whom is the board of directors accountable?
The board of the directors are accountable to the stakeholders such as shareholders,
owners, society and other higher ups in the organization.
3. What are the specific activities of the board of directors?
•
Establishing mission, vision, goals and ethical standards of the organization
•
Delegating an appropriate job to the other shareholders
•
Crisis management
•
Overseeing the management remuneration, performance and succession planning
•
Approving the plan and budget
•
Assuring that an adequate system of internal controls exists and is operating
properly
4. What is management’s responsibility as far as financial reporting is concerned?
The management's financial obligations include determining the accounting standards
better reflect the economic substance of the company's transactions.
It incorporates an internal control mechanism that ensures financial reporting is complete
and accurate.
It also ensures that all disclosures in the financial statement are correct and complete.
5. “Small business enterprises do not need good governance.” Do you agree? Explain.
I disagree with the reason of that good governance is required in any type of
organization in order to preserve order. Transparency and accountability, which are
promoted through good governance, are essential for every organization.