All of the Following Are Essential Principles of Corporate Governance

question 45

Multiple Choice

All of the following are essential principles of corporate governance identified by the Securities Commission except:

• A) recognising and managing risk.
• B) structuring the board of directors to make it as effective as possible.
• C) actively promoting ethical and responsible decision-making.
• D) providing jail sentences for breaches of corporate governance rules.

---

Definitions:

Sales Decline

A decrease in the volume or value of sales over a specific period.

Margin of Safety

The extent by which sales can fall before reaching the break-even point.

Break-even Sales

The amount of revenue required to cover all fixed and variable expenses associated with producing and selling a product.

Dollars

A unit of currency used in various countries, including the United States, associated with financial transactions, savings, and debts.