QUESTION 7 Select from the following a factor that does not relate to the reduction of agency costs. O tying managerial compensation to share price performance O having a board of directors.in the company O Existence of internal and external auditors O Paying executive directors huge bonuses that are not related to their performance QUESTION 8 Which of the following bodies are key regulators of Australian businesses; I Australian Prudential Regulatory Authority (APRA) If Industrial Protection Agency III Australian Securities Exchange IV Australian Securities and Investments Commission O I and IV 1, III and IV II, Ul and IV I, II, III and IV

QUESTION 7 Select from the following a factor that does not relate to the reduction of agency costs. O tying managerial compensation to share price performance O having a board of directors.in the company O Existence of internal and external auditors O Paying executive directors huge bonuses that are not related to their performance QUESTION 8 Which of the following bodies are key regulators of Australian businesses; I Australian Prudential Regulatory Authority (APRA) If Industrial Protection Agency III Australian Securities Exchange IV Australian Securities and Investments Commission O I and IV 1, III and IV II, Ul and IV I, II, III and IV

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter22: Performance Evaluation Using Variances From Standard Costs

Section: Chapter Questions

Problem 22.2CP

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H1). ON ETHICS: From a corporate governance standpoint, paying higher premiums indicates a managerial determination to acquire targets at all costs. Given that EMNEs’ management is typically inexperienced in managing acquisitions in developed economies, as a shareholder of several EMNEs (such as those mentioned), do you support such managerial actions?
Question 1 (i) Examples of economic stakeholders areA. customers, suppliers, banks and other debt holdersB. the board membersC. shareholders and employeesD. Any stakeholder who has a direct or indirect stake in the company (ii) The board of directors isA. The only governance mechanism in an organisationB. Only a fiction according to the managerial definition of corporate governanceC. Have the power to monitor managerial opportunism onlyD. The main principal in an agency relationship (iii) Stakeholders areA. only those who have contributed something that is at risk with the firmB. only actors who have a legitimate stake in the corporationC. all the actors who may be influenced or who may influence a corporationD. None of the above (iv) Which ONE of the following would not be described as an institutional investor?A. BanksB. Pension fundsC. Insurance companiesD. Employees holding shares through an employee share scheme
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