Corporate Finance - Corporate Finance Section 1

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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.
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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.
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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.
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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.
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