26.8. Structure of Corporate Governance

Try these first

1. 1.

   What is the primary role of the Board of Directors?

   Hint

   Think about who checks the company’s operations.

2. 2.

   Who provides the capital to a corporation?

   Hint

   Consider who owns shares in a company.

3. 3.

   What is the role of the Board of Directors?

   • Oversee management
   • Run day-to-day operations
   • Enforce regulations

   Hint

   Focus on who manages the corporation at a higher level.

4. 4.

   True or False: Shareholders are responsible for day-to-day management.

   • True
   • False

   Hint

   Think about the roles discussed.

5. 5.

   If a company's Board is ineffective, what potential risks does it face concerning shareholders and overall governance?

   Hint

   Consider the implications for company's reputation.

6. 6.

   How would you design a structure for a new corporate governance model that enhances accountability among the executives?

   Hint

   Focus on procedures that ensure oversight.