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

(2 marks) 
139 To encourage Executive Directors to operate in the best interests of the shareholders, 
they could: 
A 
be given a high basic salary 
B 
receive share options based on both individual and company’s performance 
C 
be entitled to large payment upon resignation or termination 
D 
be asked to attend AGMs 
(2 marks)
140 Corporate social responsibility refers to the idea that a company should: 
A 
play an active part in the social life of the local neighbourhood 
B 
be sensitive to the needs of all stakeholders 
C 
be alert to the social needs of all employees 
D 
act responsibly in relation to shareholders’ overall needs – not just their financial 
needs 
(2 marks)
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P AP E R F 1 ( F A B ) :
AC COU N TAN T IN B US INES S
 
32
KA P LA N P UBL I SH IN G 
141 Which of the following would best explain the concept of sustainable development? 
A 
Starting business on the developed countries where the economic climate is 
conducive to trade 
B 
Development which meets the needs of the present without compromising the 
ability of future generations to meet their own needs 
C 
Sustaining the production at the level of maximum capacity 
D 
Developing the business by signing long-term contracts with suppliers 
(2 marks)
142 Modern view on Corporate Social Responsibility is: 
A 
it is a way to further a company’s business and attract additional shareholders 
B 
it is necessary to reduce product liability claims 
C 
a company must give part of its profits to charity 
D 
social responsibility is incompatible with the objective of maximising shareholder’s 
wealth