The Organisation for Economic Cooperation and Development has laid down the following Principles of Corporate Governance: (i) Ensuring basis for Effective Corporate Governance Framework: The corporate governance framework should promote transparent and efficient markets, be consistent withlaw and clearly articulate the division of responsibilities among different supervisory, regulatory and enforcement authorities.(ii) Rights of shareholders: The corporate governance framework should protect shareholders and facilitate their rights in the company. Companies should generate investment returns(dividend) for the risk capital invested by the shareholders.

(iii) Equitable treatment of shareholders: All shareholders should be treated equitably (fairly). Shareholders should have to be redressed when their rights are contravened or when they are oppressed by the majority. (iv) Role of Stakeholders: The corporate governance framework should recognize the legal rights of its stakeholders and facilitate cooperation with them in order to create wealth, employment and sustainable enterprises.(v) Disclosure and transparency: Companies should make relevant, timely disclosures on matters affecting financial performance, management and ownership of the business. (vi) Responsibilities of the Board of directors: The board of directors should set the direction of the company and monitor management so that the company achieves its objectives. The corporate governance framework should underpin the boards accountability to its members.

Question 41

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The principle of _________ stresses that the corporate governance framework of a company should facilitate the shareholders rights in the company.

a.

Responsibilities of Board of directors

b.

Ensuring effective Corporate Governance Framework

c.

Role of Stakeholders

d.

Rights of Shareholders

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Question 42

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The principle of _________ stresses that the corporate governance framework of a company should be consistent with law.

a.

Role of Stakeholders

b.

Ensuring effective Corporate Governance Framework

c.

Rights of Shareholders

d.

Responsibilities of Board of directors

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Question 43

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Corporate governance involves the relationship between company's management, board of directors and ________.

a.

Bankers

b.

Competitors

c.

Creditors

d.

All stakeholders

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Question 44

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The principle of _________ stresses that the corporate governance framework of a company should ensure that the shareholders are redressed when their rights are contravened.

a.

Rights of Shareholders

b.

Responsibilities of Board of directors

c.

Equitable treatment of shareholders

d.

Role of Stakeholders

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Question 45

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The principle of _________ stresses that the corporate governance framework of a company should articulate the division of responsibilities among the regulatory authorities.

a.

Responsibilities of Board of directors

b.

Rights of Shareholders

c.

Ensuring effective Corporate Governance Framework

d.

Role of Stakeholders

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Question 46

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When a company has solid _________, it means that the organization is well managed.

a.

factory effluents

b.

corporate governance

c.

gases

d.

raw materials

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Question 47

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The principle of _________ stresses that the corporate governance framework of a company should allow it to make relevant, timely disclosures on matters affecting financial performance, management and ownership of the business.

a.

Equitable treatment of shareholders

b.

Disclosure and Transparency

c.

Responsibilities of Board of directors

d.

Rights of Shareholders

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Question 48

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If a Company paid dividend to its majority shareholders ignoring its minority shareholders, then it has violated the Principle of ________.

a.

Equitable treatment of shareholders

b.

Disclosure and Transparency

c.

Responsibilities of Board of directors

d.

Rights of Shareholders

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Question 49

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If a Company failed to inform the shareholders on time regarding any important information affecting its financial performance, then it has violated the Principle of ________.

a.

Responsibilities of Board of directors

b.

Equitable treatment of shareholders

c.

Disclosure and Transparency

d.

Rights of Shareholders

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Question 50

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The _________ framework of a company should be framed in such a manner that the board of directors become accountable to its members.

a.

Grading

b.

Planning

c.

Organisational

d.

Corporate governance