Question 1 (i) Examples of economic stakeholders are A. customers, suppliers, banks and other debt holders B. the board members C. shareholders and employees D. Any stakeholder who has a direct or...

Question 1

(i) Examples of economic stakeholders are
A. customers, suppliers, banks and other debt holders
B. the board members
C. shareholders and employees
D. Any stakeholder who has a direct or indirect stake in the company

(ii) The board of directors is
A. The only governance mechanism in an organisation
B. Only a fiction according to the managerial definition of corporate governance
C. Have the power to monitor managerial opportunism only
D. The main principal in an agency relationship

(iii) Stakeholders are
A. only those who have contributed something that is at risk with the firm
B. only actors who have a legitimate stake in the corporation
C. all the actors who may be influenced or who may influence a corporation
D. None of the above

(iv) Which ONE of the following would not be described as an institutional investor?
A. Banks
B. Pension funds
C. Insurance companies
D. Employees holding shares through an employee share scheme