ACCA109 Chapter 1 - Corporate Governance, Business Ethics, Risk Management and Internal Control PDF

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Explain whether the following statement is true or false. “Governance is exercised only by the government of a country”  The statement above is false, governance can be exercised not only by the government it can only be exercised by a organization and a corporation because based on the meaning of ...

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Explain whether the following statement is true or false. “Governance is exercised only by the government of a country”  The statement above is false, governance can be exercised not only by the government it can only be exercised by a organization and a corporation because based on the meaning of governance it is a process of decision making and the process which decisions are implemented (or not implemented) through the exercise of power or authority by leaders of the country and / or organizations.  a. 

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Explain how governance can be used in the following contexts and give appropriate example: National Governance The use of governance in national government is that it can help in the proper employment of ideas of the government and it helps in handling the affairs of the state. For example proposing of an act and law that promotes political, social and health and economic development that being promulgated for the better life of the people. Local Governance Because of the used of the governance in local level it greatly affected the interactions of the government to its citizens and its community. Because of this local government bodies regulates and govern public affairs in accordance to the law at their own act of response for the benefit of the local community. For example implementing efficiently a specific duty and obligation of the state government bodies if such authority is delegated to it by the law. Corporate Governance The used of governance to the corporation is to facilitate effective rules, practices, and entrepreneurial management that can give a long-term success to the corporation. Selecting board of directors can be considered as part of corporate governance since selecting them is one of the purposes of the corporate governance for how they set values of the business firm. International Governance Governance can be used for setting international rules that aimed to response to the problems of one state or two that can be done with the cooperation of each nation.

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Transparency and accountability are synonymous. Explain whether the statement is correct.  Transparency is associated to accountability. The disclosure of freely available information and the enforcement of decisions in transparent way and in line with the rules and regulations enable those affected of such decisions and its enforcement to take actions and to look for who is needed to be accountable.

 Explain whether the following statement is true or false. “Responsiveness usually results to effectiveness and efficiency”.  It is true that responsiveness will results to effectiveness and efficiency, because for the corporation to meet the stakeholders need, the corporation is required to be responsive to the stakeholders need and demand in a reasonable timeframe....