In most countries, what is the usual purpose of codes of practice on corporate governance?
A、To establish legally binding requirements to which all companies must adhere
B、To set down detailed rules to regulate the ways in which companies must operate
C、To provide guidance on the standards of the best practice that companies should adopt
D、To provide a comprehensive framework for management and administration
A、To establish legally binding requirements to which all companies must adhere
B、To set down detailed rules to regulate the ways in which companies must operate
C、To provide guidance on the standards of the best practice that companies should adopt
D、To provide a comprehensive framework for management and administration
【参考答案及解析】
Examiner's comments: The examiner commented that only 47% of candidates answered this question correctly. Codes ofpctice are usually associated with a principles-based approach (rather than a rules-based approach) and so options A and B should have been easily eliminated. The words 'guidance' and 'should adopt' were the key words to lead to the correct option
Examiner's comments: The examiner commented that only 47% of candidates answered this question correctly. Codes ofpctice are usually associated with a principles-based approach (rather than a rules-based approach) and so options A and B should have been easily eliminated. The words 'guidance' and 'should adopt' were the key words to lead to the correct option