(i) The size of the board depends on: i. The size of the company ii. The industry or business sector in which it operates iii. Extent to which activities of companies are subject to regulation iv. The number of board committees A. i only B. i and ii only C. i, ii and iii only D. All of the above (ii) 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 the preparation 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. (iii) Managerial hegemony is best explained in terms of A. The provision of incentives to managers to encourage them to act in unison with the shareholder's interests. B. CEO's dominance in the director selection process and therefore control the board results in management domination in boards. C. Having boards with a majority of 'specialist' executive directors rather than a majority of 'non specialist' independent directors who will supplement the organizational knowledge resources D. Having both internal and external corporate governance mechanisms to induce managerial actions that maximize profit and shareholder value.
Please answer all 3 subparts.
2020 Question 1
(i) The size of the board depends on:
i. The size of the company
ii. The industry or business sector in which it operates
iii. Extent to which activities of companies are subject to regulation
iv. The number of board committees
A. i only
B. i and ii only
C. i, ii and iii only
D. All of the above
(ii) 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 the preparation 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.
(iii) Managerial hegemony is best explained in terms of
A. The provision of incentives to managers to encourage them to act in unison with the shareholder's interests.
B. CEO's dominance in the director selection process and therefore control the board results in management domination in boards.
C. Having boards with a majority of 'specialist' executive directors rather than a majority of 'non specialist' independent directors who will supplement the organizational knowledge resources
D. Having both internal and external corporate governance mechanisms to induce managerial actions that maximize profit and shareholder value.
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