Please answer all 3 subparts Question 1 (i) Which of the following is not an appropriate definition of Corporate governance? A. The system of rules and processes by which a company is directed and...

Please answer all 3 subparts

Question 1

(i) Which of the following is not an appropriate definition of Corporate governance?

A. The system of rules and processes by which a company is directed and controlled.
B. The way powers are shared and exercised by different groups to achieve objectives of the company.
C. The system of decision making and administrative work related to the daily operations of the organisation.
D. The system of monitoring and control to ensure that management runs the company in the interests of shareholders.

(ii) Agency theory is based on the view that

A. The purpose of corporate governance (CG) should be to satisfy (as far as possible) the objectives of all stakeholders.
B. Boards of directors are considered as important mechanism for reducing transaction costs associated with environmental interdependency.
C. Corporate governance will be to employ or design techniques or systems that can secure the interests and values of the management.
D. The system of CG should be designed to minimise agency problems & costs.

(iii) Governance mechanisms include

i. Auditors,
ii. Laws and regulations
iii. Boards of directors
iv. Markets for control

A. (i) only
B. (i) and (ii) only
C. (i), (ii) and (iii) only
D. All of the above