ACCA ACCA Corporate Governance 1

Question 1

Which ACCA paper primarily covers corporate governance and its application to listed companies?

Accepted Answer

P1 - Governance, Risk and Ethics

Answer

The ACCA P1 (now SBL) paper focuses on governance, risk, and ethics as they apply to organizations including listed companies.

Question 2

In the UK Corporate Governance Code, what principle governs the relationship between a company's board and its shareholders?

Accepted Answer

Engagement

Answer

The UK Corporate Governance Code's 'Engagement' principle addresses how the board should maintain dialogue with shareholders and stakeholders.

Question 3

Which of the following best describes a 'unitary board' structure in corporate governance?

Accepted Answer

Executive and non-executive directors on a single board

Answer

A unitary board combines both executive and non-executive directors on one board, which is the typical structure in the US and UK.

Question 4

According to the OECD Principles of Corporate Governance, which stakeholder group is primarily protected by governance frameworks?

Accepted Answer

Shareholders and stakeholders broadly

Answer

The OECD Principles aim to protect the interests of both shareholders and wider stakeholders, ensuring accountability and transparency.

Question 5

What is the primary role of an audit committee within a company's corporate governance structure?

Accepted Answer

Overseeing financial reporting and internal controls

Answer

The audit committee is responsible for overseeing the integrity of financial reporting, internal controls, and the relationship with external auditors.

ACCA - Association of Chartered Certified Accountants Certification Practice Test

ACCA - Association of Chartered Certified Accountants Certification Practice Test

ACCA ACCA Corporate Governance 1