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AUE1501-23-S2Assessment 1
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AUE1501-23-S2Assessment 1
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1. True. Ethical leadership in the context of corporate governance requires leaders tobe competent in addition to being honest, fair, transparent, and accountable.
Competence means having the skills and knowledge necessary to do the job well. It
also means being able to make sound decisions and being able to learn from
mistakes.
2. True. A sole proprietor is the only person who owns the business. They are
personally liable for all the debts and liabilities of the business. This means that if the
business fails, the sole proprietor could lose their personal assets, such as their
home or car.
3. d. corporate governance. Corporate governance is the system by which a company
is managed and controlled. It includes the relationships between the board of
directors, management, shareholders, and other stakeholders. Ethical and effective
leadership is an important part of good corporate governance.
4. c. close corporation. A close corporation is a business entity that is owned by two to
twenty people. It is a hybrid of a partnership and a company. Like a partnership, the
members of a close corporation are personally liable for the debts and liabilities of
the business. However, like a company, a close corporation has a separate legal
personality from its members.
5. True. Private companies in South Africa require a minimum of one shareholder and
one director with a maximum of 50 shareholders.
6. True. One of the 10 principles of the UN Global Compact is that businesses should
work against corruption in all its forms, including extortion and bribery.
7. c. Agency theory. Agency theory is a theory that explains the relationship between
the principal (the shareholders) and the agent (the managers). The theory argues
that there is an inherent conflict of interest between the principal and the agent,
because the agent is motivated by self-interest and may not always act in the best
interests of the principal.
8. a. state-owned company. Transnet is a state-owned company. It is owned by the
South African government and is responsible for the transportation of goods and
people in South Africa.
9. b. Corporate citizenship expects businesses to consider the broader society in which
it operates, therefore do not sign the deal. Corporate citizenship is the idea that
businesses have a responsibility to act in a way that is beneficial to society as a
whole. This includes considering the environmental impact of their activities. In this
case, the business should not sign the deal because it would have a negative impact
on the environment.
10. a. All these alternatives are contributing factors. There are many factors that
contribute to fraud and corruption, including weak internal controls, collusion
between management and employees, and people in power abusing their power.
I hope this helps! Let me know if you have any other questions.
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