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B1. In the UK, good corporate governance is encouraged through a self-regulatory code of best practice. (i) Explain the framework of corporate governance rules. [8

B1. In the UK, good corporate governance is encouraged through a self-regulatory code of best practice. (i) Explain the framework of corporate governance rules. [8 marks] (ii) Explain what is meant by the 'agency problem' and discuss the role of good corporate governance as a solution to this problem. [12 marks]

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