Which of the following is a feature of poor corporate governance?
A、Domination of the board by a single individual
B、Critical questioning of senior managers by external auditors
C、Supervision of staff in key roles
D、Lack of focus on short-term profitability
A、Domination of the board by a single individual
B、Critical questioning of senior managers by external auditors
C、Supervision of staff in key roles
D、Lack of focus on short-term profitability
【参考答案及解析】
Rationale: This is a feature of poor corporate governance because it makes way for self-interested decision-making. The others may 'look' like negatives, but are in fact the opposites of three other features of poor corporate governance: lack of independent scrutiny; lack of supervision; and an emphasis on short-term profitability (which can cause pressure to conceal problems or manipulate accounts).Ways in: You could have got to the answer with logic, with a sound grasp of corporate governance - but it would be worth learning the list of features of poor corporate governance, so you can recognise them in an exam question.
Rationale: This is a feature of poor corporate governance because it makes way for self-interested decision-making. The others may 'look' like negatives, but are in fact the opposites of three other features of poor corporate governance: lack of independent scrutiny; lack of supervision; and an emphasis on short-term profitability (which can cause pressure to conceal problems or manipulate accounts).Ways in: You could have got to the answer with logic, with a sound grasp of corporate governance - but it would be worth learning the list of features of poor corporate governance, so you can recognise them in an exam question.