TRUE. An organization has the flexibility to
establish its own framework of corporate
governance to include its own best practices
while being guided by regulatory bodies'
imposed laws, rules and regulations.
TRUE. Ethical standard differs from person to
person.
TRUE. Shareholder's Theory is similar to Finance
Theory, as they both focus on the shareholder's
wealth maximization and profitability of the
organization.
TRUE. Stakeholder's Theory focuses on the
long-term financial benefit/performance of the
organization
TRANSPARENCY. The organization publishes
their financial statements and non-financial
reports.
TRUSTWORTHINESS AND PROMISE KEEPING.
Contract and legal documents that aids an
organization's ___.
PROFESSIONAL BEHAVIOR. Do not make
decision when you're happy, sad, excited, angry
or hungry. When you're in the height of you
emotions you tend to miss out on details that
may affect your decision.
Professional Competence. Continuous learning
for managerial and executive position is
imperative.
Avoidance of potential conflict of interest. In
other countries, spouses of individuals holding
executive positions of private publicly traded
companies cannot hold public office.
RISK SHARING. Mr. A is a sole proprietor
bearing all gains and losses of Business A; as the
business continues to grow, he fears to be
personally liable to the entirety of the business'
liabilities. He decides to find other partners for
the business.
RISK AVOIDANCE. Ms. C, the CEO and owner of
Business C, decides not to acquire Business A
because it carries additional risks (such as:
litigation risk, reputational risk, financial risk
etc.).
RISK REDUCTION. Mrs. A always prepares a
contingency plan for external risks.
LOYALTY AND CONFIDENTIALITY. Organization
A provides enough information (financial and
non-financial) to their business partners while
making sure that their core competencies are
kept within the organization. Organization A
practices balance between _&_.
TRANSACTION COST THEORY. Given several
choices, Manager O decides to choose the plan
that allows his/her team to have the most
convenience rather than choosing the option
that provides the best result for the company.
This is an example of _.
HONESTY. Company W discloses to their
partners the current underwhelming situation
of their company. Company C exhibits which
characteristic?
TRANSPARENCY. It reduces the information
gap between directors and stakeholders.
Fairness & Openness. Organization X provides
their business partners the same amount of
information that their business partners provide.
Integrity, impartiality, objectivity. As part of
the top management, a person must judge the
performance of his/her subordinate based on
his/her decisions and actions; and not be biased
(racism, sexism, misogyny, etc.).
PARTICIPATION. The top management sets a
good example to their employees by being
involved and following the rules and regulations
they set themselves.
Human Resources Policies and Procedures.
Nepotism is a problem of organization's _.
LIQUIDITY RISK. The risk faced by businesses
when they fail to efficiently convert
goods(inventory)/services into cash or cash
equivalents.
PURCHASING POWER RISK A risk related to
inflation and the ability of money to acquire
goods and services over time
Risk can arise from:
ASSIGNMENT
OF
AUTHORITY
AND
RESPONSIBILITY. A memorandum is a
document signed by the top management as a
proof that they are aware and have approved of
announcement/protocols/rules and regulations
to be applied in the organization. Additionally,
they would bear responsibility for the
consequences of the memo. This is an example
of which internal control?
1. Corporate restructuring
Fair competition. Insider trading is against
which ethical principle of business?
2. Management
2. Expanded foreign operations
3. Rapid growth
4. New Technology
INTERNAL STAKEHOLDERS :
1. Employees.
EXTERNAL STAKEHOLDERS:
INTERNAL CONTROL. It is the task of _ to look
for faults and problems in the processes and
operations of the other department and or the
organization to find solutions and provide
recommendations.
1. Distributors
2. Government
3. Society
SHAREHOLDERS They have the power to elect
the Board of Directors
STAKEHOLDERS. Those who are impacted and
impacts the organization
CORPORATE CONTROL. Assessing whether the
board members are doing the right thing.
Environmental risk is a/an External Risk
Management Risk is a/ an Internal Risk
RISK. It is the probability that some future
could adversely impact the organization.
DEFAULT RISK. The risk associated with the
inability of investors to recover their initial
investments in the organization when it gets
bankrupt.
Directing the adoption of the Code of Good
Governance for the profession in the Philippines
- Executive Order No. 220
EMPLOYEES. They have high interest but low
power over the organization
SEGMENT C. Individuals/Group of people under
this segment should be 'kept satisfied'.
Corporate governance promotes: FAIRNESS,
ACCOUNTABILITY, TRANSPARENCY
TCWG (Those Charged With Governance) wield
___ to enact policies and decisions: Power,
Authority, Influence.
SEC. A the federal agency responsible for
administering the Federal Securities Laws
CORPORATE GOVERNANCE.
direction for the organization.
___
provides
Entity Risk Assessment Process is part of RISK
MANAGEMENT & INTERNAL CONTROL
MONITORING CONTROLS It is not only the
other departments that gets assessments,
criticisms, and recommendations but also the
Internal Control System themselves.
CONTROL ENVIRONMENT It is the overall
attitude, awareness and actions of directors and
management regarding the Internal Control
System.
Stakeholders include ___.
1. Suppliers
2. Government
3. Unions
4. Employees
INTERNAL AUDITORS. Audits companies for
compliance with company policies and laws,
audits to evaluate operational efficiency, and
periodic evaluation and testing of controls.
INFORMATION
PROCESSING
CONTROL.
Independent check performance is a control
activity under