Acca paper F1 fia diploma in Accounting and Business Accountant in Business (AB/fab) exam kit

 
(0.5 marks each, total = 2 marks) 
(b) 
Below are a number of statements regarding committees. 
A 
Ad hoc committees are formed for a particular purpose on a permanent basis 
B 
Committees can be used a delaying mechanism 
C 
Committees are often slow at making decisions due to internal disagreements 
D 
The Chairperson is typically responsible for preparing the minutes of meetings 
E 
The Secretary is typically responsible for ensuring the meeting is kept on time 
F 
Committees make decisions that are often more easily accepted by the 
organisation 
G 
Committees enjoy collective responsibility 
H 
Standing committees are typically temporary in nature 
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PRACTICE MULTI-TASK QUESTIONS : 
S E CTI ON 2
K APLA N PUBLISH ING 
91 
Required: 
Write down which four of the above statements are correct with regards to 
committees by selecting FOUR of the letters from A-H. 
 
 
(0.5 marks each, total = 2 marks) 
 
(Total: 4 marks) 
17
 
(a) 
L Co has recently decided to convert to a public company in order to sell its shares on 
its local stock exchange. It is concerned that it lacks the appropriate knowledge of the 
corporate governance requirements that are typically required when seeking a 
listing. 
Below are a number of statements regarding best practise relating to non-executive 
directors (NEDs): 
A 
NEDs have no day-to-day managerial responsibilities 
B 
Best practise suggests that NEDs should not serve with the same company for 
more than five years 
C 
NEDs should not take share options in the company, but can participate in its 
pension scheme 
D 
NEDs attend board meetings and have a say in the strategic decision-making of 
the company 
E 
Smaller companies should have at least two NEDs on their board 
F 
NEDs should never have had a material business interest in the company they 
are working for 
G 
NEDs shouldn’t have any close links to the executive directors