Corporate Finance - Corporate Finance Section 1
11. Stakeholder management is best described as:
- A
identifying, prioritizing, and understanding the interests of stakeholder groups, and, on that basis, managing the company’s relationships with these groups.
- B
identifying, prioritizing, and understanding the interests of shareholders and managing shareholder relationships with other stakeholders.
- C
identifying, prioritizing and understanding the interests of stakeholders and serving those interests first that maximize company profits.
- Option : A
- Explanation : Stakeholder management involves identifying, prioritizing, and understanding the interests of stakeholder groups, and, on that basis, managing the company’s relationships with these groups.
12. Management and board of director's conflicts can arise as a result of:
- Option : A
- Explanation : The board's monitoring role can be compromised when management gives limited information to the board hence creating a conflict.
13. Which of the following is not a stakeholder management infrastructure?
- Option : B
- Explanation : The stakeholder management framework includes legal infrastructure, contractual infrastructure, organizational infrastructure and governmental infrastructure.
14. Governance procedures and practices are part of which of the following?
- Option : C
- Explanation : Governance procedures and practices are part of the organizational infrastructure.
15. Which of the following is least likely to be done at an extra-ordinary general meeting?
- Option : C
- Explanation : Approval of financial statements requires simple majority and is done at ordinary general meetings and do not require an extra-ordinary general meeting.
