The 'If Not, Why Not' Approach of the ASX Corporate

question 5

Multiple Choice

The 'if not, why not' approach of the ASX Corporate Governance Council to its recommendations requires companies to:

• A) Disclose whether they have complied with the principles and recommendations
• B) Establish an audit committee
• C) Report to ASIC any breaches by their auditor of the Code of Ethics
• D) Have a majority of the board as independent directors

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Definitions:

Internal Rate

Often referred to as the Internal Rate of Return (IRR), it’s the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Investment Proposals

Formal plans or suggestions put forward for consideration or discussion, especially one concerning financial investment.

Capital Budgeting

The process of planning and evaluating investments in long-term assets, focusing on projects that will generate future profits.

Required Rate

Typically refers to the minimum return rate needed on an investment, considering risk and funding costs.