2. Critically evaluate the organizational and management issues (such as power, hierarchy and identity etc.) that are addressed in an alternative organization. 3. Discuss the consequences of maximising shareholder value and critique whether this should be the dominant principle of corporate governance? The word count is 2,000
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- 1. Discuss briefly the main problems between the management of corporations and shareholders that raised the interest in corporate governance? 2. Firms that apply good corporate governance practices have advantages, mention two advantages.You just been employed as the new Chief Executive Officer of a medium-sized company that listed on the Ghana Stock ExchangeAt the Board Meeting the chairman advised you and your management team to avoid what he termed Agency problem"Explain the term "Agency Problem" in corporate governance, and briefly explain four () wys by which the shareholders of company encourage its managers act in wwys which are consistent with the objective of value maximizationMa4. Jill Solomon, in her book Corporate Governance and Accountability (2010) poses the question “How does financial accounting information help shareholders to monitor and control company management in an agency theory framework?”(Page 154). Attempt to provide a cogent answer to this question.
- Identify any corporate governance issues that hinder smooth financial management that prevail in yourcountry. The presentation mainly highlights the following issues:a) What is it?b) Where it occurs?c) Detailed threats it poses to the business market or specific organization(s).d) Suggest solutions to what can be done.Which of the following are in keeping with Corporate Governance? a Shareholders run the company on a short term basis B Board of Directors run the company on a short term basis C. CEO and top management run the company on a short term basis D. Answers a and b E. Answers a and cPlease answer all 3 subparts Question 1 (i) Which of the following statement is correct concerning two-tier boards?A. The management board consists entirely of non-executive directors.B. The supervisory board has the responsibility for risk management and for thepreparation of the annual financial statement.C. The management board is led by the Chairman who is the CEO of the company.D. The supervisory board is responsible for managing the company. (ii) Who are key players, according to the firm definition of corporate governance:A. ManagementB. ShareholdersC. All stakeholdersD. The independent board (iii) Which of the following is not a statutory duty of a director?A. Duty to disclose any money received in connection of a transfer of company property.B. Duty to exercise due diligence in their work.C. Duty to contribute an appropriate sum of money to the board on joining the company.D. Duty to keep proper accounting records and make such records available for inspection.
- The success of any organization heavily depends on the efficiency of the corporate governance. The only way to know the status of success or failure can be found _________________. a. None of the options b. By observing at the number of directors in the board of directors c. By providing a complete internal control report d. By looking at the financial results of the corporation29. Qualified accountants have superior knowledge of tax and financial reporting. What sort of power do they exert over other managers in an organisation? Coercive power Expert power Referent power Reward power In terms of Hofstede's cultural dimensions, the country of Frangium has a high power-distance (PD) score 2. Which of the following is an aspect of corporate governance that is likely to be seen in Frangium? OA Reduced promotion of risk management and internal controls Increased emphasis on basing rewards on annual performance Reduced emphasis on separating the board roles of chair and CEO Increased number of non-executive directors on the boardAnswer the following case. (1) Identify and explain the corporate governance issues in each case. Support your answer with appropriate theory(s) if any. (2) Give recommendations and justify them to the board of directors. A. XYZ is a limited company operating in the steel industry. Its board of directors consist of nine independent directors, labor union representative director and nominee directors to represent major shareholders and lenders. The board is controlled by dominant directors. Mr. Smith is the independent chair of the board. Mr. John is one of the nominee directors and the husband of the CFO of XYZ. During 2020, the company started to face some financial problems. The board members were not informed with the situation. Mr. John came to know about these problems and advised his major shareholder to sell his shares.
- (ii) The oversight function of corporate governance is performed by:A. The company's board of directors and its designated committeesB. The auditors and board of directorsC. The board of directorsD. The board committees (iii) The appointment of independent non-executive directors from different sectors is better explained by:A. Agency theory.B. Resource dependence theoryC. Stakeholder theoryD. Managerial hegemony theoryWhich of the following are in keeping with Corporate Governance? a Shareholders own the company B. Board of Directors own the company C. CEO and top management own the company D. Answers a and b E. Answers a and c3 Which of the following are in keeping with Corporate Governance? A Shareholders run the company on a lonlong-termsis B. Board of Directors run the company on a lonlong-termsis C. CEO and top management run the company on a long term basis D. Answers a and b E. Answers a and c