3. Discuss whether over-diversification is a consequence of corporate governance failure.

Q: Discuss how earnings management is used as a tool to reduce sensitivity to political pressure.

A: Earning management is being associated with the use of discretionary accounting accruals in order to…

Q: What do you think is the main issue of conflict between the stockholders and managers?

A: There are various conflicts of interest that can impact manager's decisions to act in shareholders'…

Q: What is management fraud?

A: Fraud:   It is an intentional misappropriation of the assets or the financial records of an…

Q: Explain the reasons for the need of corporate governance code

A: Corporate governance is the bedrock of any successful company. It refers to the procedures, methods,…

Q: Change is always good for some participants and bad for others. Which types of financial…

A: Investment banks, underwriters, brokerage companies, and deposit-taking institutions such as trusts,…

Q: sity creates a

A: Given: To explain the accounting diversity demands for,

Q: Explain the operation of the contra proferentem rule. Is such a rule defensible in today’s business…

A: Contra proferentem rule: The rule of contra proferentem is a legal doctrine in contract law that…

Q: Question 6: How can a firm assess risk and how can internal controls systems help minimize the…

A: Risk The loss that may occur when an investment is made is known as risk. Risk includes political…

Q: What are governance mcechanisms that help align the incentives of stockhlers and managers  - help…

A: The interest of stockholders and managers are often not aligned. Stockholders are owners of a…

Q: Is stakeholder management critical?

A: Stakeholders are all such individuals who are having interest in the company or who will be affected…

Q: Which of the following statements is/are INCORRECT? O 1) Takeover threats tends to affect managerial…

A: Corporations have double taxation problems: The given statement is true as the income id once…

Q: Generally speaking, why would a company that changes its strategic goals need to change…

A: Given: The change of strategic goals of a company makes a need for change in the performance system…

Q: Why does management employ internal control systems as part of organizational and IT governance…

A: Internal control systems are mechanisms put in place by an organization's management to ensure that…

Q: IT Governance Risk issues

A: IT Governance: It is a framework that assists the organizations in ensuring that the business…

Q: Regulators may impose political costs on firms. However, there are ways that some firms practice to…

A: During the past few years, it has been observed that the size of the company and the level of…

Q: What does mangment want to achieve when it tries to "ensure liquidity" and  "maintain solvency "?

A: Companies do maintain sufficient liquidity to maintain the day-to-day operations of the entity. It…

Q: How can purchasing managers use their position to defraud the company? What can be done to prevent…

A: Purchasing Manager: The purchasing department is responsible to purchase the assets and hire the…

Q: What are some determinants of business risk?

A: Business risk is referred as the exposure of risk factors towards a company or a business which…

Corporate Ethics

Ethics refers to the moral values and principles that guide an individual. Corporate ethics refers to the moral behavior of a company and its employees while conducting business. Business ethics is another name for corporate ethics. Business ethics reflects the purpose of doing the business. Business ethics is the distinction between what is right and wrong in the workplace and the selection of the right set of actions. Every corporate entity follows business ethics to a large extent in order to survive and compete successfully in the market. Corporate entities that strictly adhere to business ethics gain the trust of their stakeholders and thus gain more customers. An organization follows compliance, i.e., following certain business policies, rules, procedures, and practices to deal with the problem arising from the business environment. Business ethics also ensures that they meet compliance requirements as it was connected with the activities of an organization.