Exam 4: Fundamental Concepts of Corporate Governance

Messrs Williams and Adler were prosecuted for breaches of s.184 of the Corporations Act,and were found to have acted dishonestly and recklessly in the performance of their duties as directors of HIH Insurance Ltd.

The ASX Corporate Governance Principles and Recommendations are an example of:

Agency theory focuses on providing value to all the company's stakeholders as a whole on the basis that this will benefit society as a whole.

Under the Corporations Act in order to be a non-executive director of a company you must be independent.

Under the CLERP 9 reforms governing auditors,former auditors are prohibited from employment in or directorships of their former clients for a period of:

Under the CLEPR 9 reforms governing auditors,audit partners of listed companies must rotate off a company's audit after a period of:

Stakeholder theory refers to the concept of managers acting as agents of the owners of a business and arises due to the separation of ownership from control.

The ASX Corporate Governance Principles and Recommendations:

Which of the following is not a warning signal that should raise concern with directors and officers in relation to the solvency of the company?

The key regulators of Australian business include which of the following?

According to the ASX Corporate Governance Council,corporate governance influences all but which of the following?

Which of the following statements is incorrect?

Listed companies have an obligation to ensure the market is notified of information that a reasonable person would expect to have a material effect on the price or value of the companies' shares.This obligation is known as:

One of the key corporate governance deficiencies at ABC Learning Centres Ltd was the fact that there was no one on the board with accounting and financial experience.

Hard regulations are also referred to as black letter law and result in legally enforceable obligations.

Corporate governance deals with the way corporations are managed and governed.

The court decision that places a greater responsibility on the role of the chairman is:

Non-executive company directors are categorised into:

Under the CLERP 9 reforms governing auditors,which of the following statements are correct? I The top 500 ASX listed companies must have an audit committee. II Former auditors are prohibited from employment in or directorships of their former clients for a period of 2 years. III The oversight of auditors has been strengthened by the FRC. IV Audit partners must rotate off a company's audit after a period of 5 years.

If a company director allows a company to trade while insolvent,the director will: