You read about several corporations’ problems that led to the creation of the Sarbanes-Oxley Act. From the COSO principles , pick three that the company probably didn’t have in place and explain.
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- You read about several corporations’ problems that led to the creation of the Sarbanes-Oxley Act. From the COSO principles , pick three that the company probably didn’t have in place and explain.
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- Which of the following statements relating to corporate governance is FALSE? The legal environment in which a corporation does business can have a big impact on its decisions. Type I agency problems are more important in widely held companies. (Tick here if you think that none of the other statements is FALSE.) Straight voting is better for minority shareholders than cumulative voting. In a civil law system, judges interpret the law but they cannot change it.Please provide your thoughts on corporate ethics by answering the question "why is it good (or bad) for a corporation to exercise (or not to exercise) social responsibility?" !The Agency Problem arises because of the separation of ownership from control of publiclylisted corporate organizations.I. Discuss this statement bringing out what the Agency Problem is and managementactions or behaviours that may be considered as giving rise to the Agency Problem.II. Explain five ways in which you believe could be used to minimize the occurrence ofthe Agency Problem in a Ghanaian listed company of your choice.
- Which of the following are correct descriptions of large corporations? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) check all that apply Managers no longer have the incentive to act in their own interests.unanswered The corporation survives even if managers are dismissed.unanswered Shareholders can sell their holdings without disrupting the business.unanswered Corporations, unlike sole proprietorships, do not pay tax; instead, shareholders are taxed on any dividends they receive.Agency problems are said to be inherent in the corporate form of an organization. Why do you think this is the case?Do you think agency problems arise in a sole proprietorship or a partnership?What steps would you take to reduce agency problems in a so-called typical corporation?a) The Agency Problem arises because of the separation of ownership from control of publicly listed corporate organizations.I. Discuss this statement bringing out what the Agency Problem is and management actions or behaviours that may be considered as giving rise to the Agency Problem.II. Explain five ways in which you believe could be used to minimize the occurrence of the Agency Problem in a Ghanaian listed company of your choice
- Why would it be desirable to switch from an S corporation to C corporation once the business is growing fast?ABC Corporation is the sole_providerof a particular service.in-the country.The government has-opened themarket for another competitorthrough an anti-monopoly law. Whatshould ABC-do? A. Assess how this would affect the business and determine whether it can improve production processes, lower costs, and improve its service.B. Purchase all available raw materials and prevent the competitor from having smooth operations.C. Identify its rights in the constitution to prevent the new competitor to exist.D. Reduce negative environmental and community impact through corporate social responsibility and persuade the government to not implement the law.which type of organization should be formed. Sharif, Henry, and Korb want to start a tech firm. They are deciding between an S corporation and a C corporation. The founders want limited liability, but they also want to avoid paying corporate income taxes.
- Why are corporations more difficult to form and subject to more government restrictions than the other forms of business organizations?How does the Sarbanes–Oxley Act contribute to accurate and quality financial reporting by public corporations? Why is the act considered an excellent example of public corporations meeting a key ethical standard? To support responses, provide examples of companies that were negatively affected by a lack of ethical guidelines.Some accountants argue that they should be allowed to invest in a company's stock as long as they themselves aren't involved in working on the company's audit or consulting. What do you think of this idea?