PART 1. THIS STATEMENT IS TRUE OR FALSE? explain (5 pts)

CEL DORO (SOROSSOST)

1. Board of directors is the governing body of limited liability companies.
2. Stakeholders of a company include government, board of director, managers, employees, media.
3. Duty of loyalty arises because the board of director is entrusted with governing money of other people.
4. Remuneration, prestige, powers.... are examples of interests and concerns of suppliers.
5. Duty of care means board of director has to act honestly, equally and independently.
6. Management-level risk can only managed by the board of director.
7. Risk assessment, risk evaluation, risk recognition, risk management policy is the process of risk

management.

1. Customers adopting substitute products is not a strategic risk.
2. Accountability is the director's obligation to inform about their past or future actions and decisions, to justify them, and to suffer punishment in the case of eventual misconduct.
3. Shareholders should have the right to be sufficiently informed on decisions concerning fundamental corporate changes.
4. Changing manufacturing technology and launching new product or service are examples of strategic risks raising from competitors.
5. Majority shareholders should be protected from abusive actions by, or in the interest of controlling shareholders acting either directly or indirectly, and should have effective means of redress.
6. Work council and employee stock ownership plans are performance - enhancing mechanisms for employee participation in corporate governance.
7. According to the societal perspective, corporate governance is the system by which companies are directed and controlled.
8. Corporate governance appeared only with the arrival of joint-stock, limited liability company.