CIMA Exam CIMAPRA17-BA4-1 Topic 3 Question 65 Discussion

Actual exam question for CIMA's CIMAPRA17-BA4-1 exam

Question #: 65
Topic #: 3

Corporate governance codes may either be rules-based or principles-based

Which of the following statements correctly describes a rules-based approach to corporate governance?

AA rules-based approach requires that a company complies with the rules or explains why it has not.

BA rules-based approach instils the code into law but leaves the sanctions for non-compliance to be decided and enforced by the shareholders.

CA rules-based approach instils the code into law but encourages compliance with the spirit of the law.

DA rules-based approach instils the code into law with appropriate penalties for transgression.

Show Suggested Answer

Suggested Answer: D

by Brock at Feb 08, 2023, 07:50 AM

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