4.Governments in many countries are encouraging improved standards of corporategovernance, focusing mainly on public companies whose securities are listed onrecognised capitalmarkets.
Why are best practices in corporate governance of special importance to thesecompanies?
A.All other types of business organisations are already subject to and fully implement high standards of corporate governance
B.Public companies have institutional investors and have greater ethical responsibilities to these investors than to personal investors
C.Public companies are subject to less stringent regulation than other types of commercial organisation
D.Public companies are subject to a greater degree of separation between those who manage the company and those who own it
5.Terri is carrying out a performance appraisal interview with Kazim, her assistant. Kazimhas described his views on the job and the responsibilities it entails and has givenopinions on how he would like to progress in the furure. Terri has acknowledged Kazim's views and has prompted further input by asking open questions and noting the responses given. Terri has invited Kazim to ask questions and has given short, focused responses to hisconcerns.
The approach to performance appraisal adopted by Terri is which of the following?
A.Joint problem solving
Tell and listen
360 degree appraisal
Tell and sell
6.Which of the following is an organisational feature of a co-operativebusiness?
A.Staffing by volunteers as well as full time employees
B.Finance from grants or contracts
C.Distribution of surplus profits in proportion to purchases
4 Public companies are subject to a greater degree of separation between those who manage the company and those who own it
Corporate governance is of special importance to public companies because of the greater degree of separation between those who
manage the company and those who own it.
Public companies are subject to a higher degree of regulation than other types of commercial organisation and they have ethical
responsibilities to all their investors equally. Other types of business organisation are not subject to corporate governance at all
e.g. sole traders and partnerships.
5.Tell and listen This is a tell and listen appraisal style, under which the manager tells the subordinate how he has been assessed and invites him torespond.
6 Distribution of surplus profits in proportion to purchases Co-operative businesses are owned and run by their workers or
customers, who share the profits. The other points are features of non-governmental organisations (NGOs).