Question

4.

Discuss the corporate governance practices of Japan, Germany, United Kingdom, and China.

Compare and contrast those practices to the ones in United States.

5.

Discuss the problems of corporate governance

6.

Discuss the mechanisms of corporate governance

Answer 1

Question 5

Problems of corporate governance are:

1. Diversity: Every set of person should be employed equally in an office to make sure the right flow of services, but this factor is being ignored by many companies even today. This is one main problem with the concept of corporate governance.
2. Internal Conflicts: well this happens when there are some conflicts that arise within the members of a company. For example, when a person employed has another set of goals and doesn’t meet the company’s common goals as a whole this makes the company worse off in its efficiency.
3. Transparency: transparency is important. Every company should be transparent in terms of their cash flows. When it is not so, it might hurt the company’s profits real bad. This can create problems for the company, even the closure might happen.

Question 6

Two main mechanisms of corporate governance are:

1. Internal Mechanism

This is the most important one. It checks on the internal happenings of the company and corrects if anything goes wrong. The check that this mechanism holds helps the investors and owners to grow. Different performance actions are being taken with the help of internal mechanisms.

2. External Mechanism

This type of mechanism is performed by the outside stakeholders of the company generally. It keeps an eye on legal matters of the company ensuring that it doesn’t get hurt when time comes. So it suggests the best performance measures to the company from the outside world’s point of view. Company may consider these if feels so. Now, this is equally important as internal mechanism because external mechanism perform its jobs more equally and gets a real advice from its outside sources only.

Question 4

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