Question1

Which of the following are characteristics of the market-based system?

Select which options are correct.

ABonds and loans are the most important source of finance in this system of corporate governance.

BDispersed investors require reliable and adequate information flows in order to make informed investment decisions.

CRegulation is intended to ensure relatively complete information for investors and to prevent privileged groups of shareholders sharing information only among themselves.

DBank finance has tended to be short-term, and banks have tended to maintain arm's-length relationships with corporate clients. Equity finance has been more important as a means ofdeveloping companies.

Question2

France and Italy are the European countries with the smallest ownership of company shares by financial institutions. Which of the following conditions prevail?

Select which options are correct.

ACorporate governance systems in these countries emphasise consensus rather than competition.

BIn France, the role of CEO and chair are combined in the role of theprsident directeur gnral(PDG), who is strongly accountable to the board.

CIn France, the majority of shares have traditionally been owned by non-financial enterprises, which reflects an elaborate structure of cross and circular ownership.

DStable investment shields managers from the short-term pressures of the market by making a change in corporate control a more difficult feature. This may be conducive to long-term, relation-specific investments, but it also weakens pressures to maximise performance.

Question3

Which of the following are characteristics of corporate governance in East Asia?

Select which options are correct.

AInstitutional investors have a significant effect on standards of governance.

BDisclosure and transparency are often limited, so it is more difficult for the legal and regulatory authorities to take action if they are inclined to do so.

COn the boards of companies, there is often no clearly defined role for non-executive directors, and lack of knowledge of the obligations and functions of company officers iswidespread.

DDecision-making bodies are often not effective in carrying out their formal roles. Sometimesthey are unable to exercise their rights, and boards are co-opted by the dominantshareholders.

Question4

For companies located in East Asia, which of the following isnotan important objective when developing more robust modes of governance?

Aallowing business networks to strengthen their position

Bclarifying and strengthening internal control structures within firms

Cdeveloping training and information programs to improve the understanding of corporate governance procedures and issues

Dstrengthening external monitoring and control through improvements in the legal framework, enhanced by regulatory agencies and greater disclosure of information

Question5

Whichoneof the following isleastlikely to be relevant in determining whether an agreement between a corporation and consumer is unconscionable?

Awhether undue influence was applied to the consumer

Bwhether the consumer was able to understand the documents used

Cthe difference in the strength of the bargaining power of the parties

Dthe extent to which the corporation drove a 'hard and tough' bargain

Question6

If a supplier induces or insists on the minimum price at which a reseller should sell or advertise the supplier's products, this is referred to as

Aprice-fixing.

Bexclusive dealing.

Cunconscionable conduct.

Dresale price maintenance.

Please give me the reason as well why its the answer for each question