Question 4

Not yet answered

Marked out of 1.34

Flag question

Question text

Question

Which one of the following statements is false?

a.

Research generally suggests that there is a link between good corporate governance practices and a lower cost of debt for an organisation

b.

Research generally suggests that there is a link between good corporate governance practices and a reduction in earnings management practices

c.

Research generally suggests that there is a link between good corporate governance practices and improved accountability and transparency

d.

Research generally suggests that there is a link between good corporate governance practices and more accurate corporate disclosures

e.

Research generally suggests that there is a link between good corporate governance practices and lower economic performance

Question 6

Not yet answered

Marked out of 1.33

Flag question

Question text

Question

The audit charter represents a particularly important document for organisations seeking to enhance their corporate governance via the inclusion of an audit committee. Which of the following would be least likely to be contained in a companys audit charter?

a.

The audit committees processes for conducting reviews and investigations

b.

The audit committees structure

c.

The audit committees requirements for becoming a member

d.

The audit committees procedures for inviting non-members to meetings

e.

The audit committees right to seek advice from external consultants

Question 7

Not yet answered

Marked out of 1.34

Flag question

Question text

Question

Which of the following is not considered a general limitation of empirical research studies investigating corporate governance?

a.

Direct relationships between variables are likely too simplistic to explain the underlying phenomena

b.

Comparisons between studies may be difficult due to variations in the context of studies

c.

Variations in study timeframes make comparisons between studies challenging

d.

It is unrealistic to meaningfully quantify any aspect of corporate governance

Question 8

Not yet answered

Marked out of 1.33

Flag question

Question text

Question

Which of the following tasks would be least likely to be undertaken by a nomination subcommittee?

a.

The proficiencies of directors on the companys board of directors

b.

The processes surrounding the appointment of directors to the companys board of directors

c.

The financial compensation of directors on the companys board of directors

d.

The retirement age of directors on the companys board of directors

e.

The size of the companys board of directors

Question 9

Not yet answered

Marked out of 1.33

Flag question

Question text

Question

The Corporations Act (2001) imposes a raft of duties and obligations on directors of Australian companies. Assume that a director was found to have insufficiently monitored managements decision-making processes. Which duty or obligation would this most likely be in breach of?

a.

Duty to act in good faith and for proper purposes

b.

Duty to oversee reporting and accounting

c.

Duty not to misuse position or information

d.

Duty to prevent insolvent trading

e.

Duty of care and diligence