review_questions_minus_answers - Review Discussion...

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Review, Discussion, True/False, and Multiple Choice Questions Chapter 1 Review Questions 1. What is the primary goal of corporate governance? 2. What is the primary mission of a public company? 3. What is the role of a corporate governance gatekeeper? 4. Corporate governance reforms and best practices require the establishment of what four key gatekeepers to deal with the perceived agency problems of asymmetric information between management and investors and to improve the quality of public financial information? 5. How does an effective corporate governance structure improve investor confidence? 6. What is the primary intent of corporate governance reforms? 7. What benefits are obtained by the proper implementation of SOX? 8. How can the board of directors influence the corporate culture? 9. What is the intention of organizational codes of business ethics and conduct? 10. Corporate governance depends on what three practices to be effective? 11. Why is there no universal definition of corporate governance? 12. How have SOX provisions, SEC-related rules, and listing standards influenced the corporate governance structure? 13. What business entities are currently affected by SOX? 14. What is the difference between a shareholder and a stakeholder? 15. What are the primary differences between financial reporting and corporate accountability reporting? 16. What is the relationship between corporations and stakeholders, and what is the corporations’ role in that relationship? 17. What is the primary difference between the first and second tier of the stakeholder hierarchy?
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18. To whom are corporations accountable? 19. Explain the relationship between corporations and the capital markets in the United States. Discussion Questions 1. In your own words, briefly explain the concepts of value creation and value protection. 2. Has Sarbanes-Oxley thus far had a positive, negative, or neutral effect on public companies? Defend your answer. 3. Discuss the following quote from Lori A. Richards, the SEC’s Director of the Office of Compliance Inspections and Examinations: “It’s not enough to have policies. It’s not enough to have procedures. It’s not enough to have good intentions. All of these can help. But to be successful, compliance must be an embedded part of your firm’s culture.” 4. What are the benefits of an MBL approach? 5. Who are first-tier, second-tier, and third-tier stakeholders, and why are they significant to the organization? 6. What is the significance of quality financial statements and other financial reporting information? 7. What are the responsibilities of corporate governance gatekeepers? 8. What should the board of directors do to promote a positive corporate culture? 9.
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review_questions_minus_answers - Review Discussion...

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