P1 December 2016 Exam Questions

Q1.a Critically evaluate the value of two tier board in relation to Governance at SSC.
1b. Explain the ways of mitigating risks of poor communication of important strategic information such as new products in pipeline before takeover
1c. Explain agency problem and criticise the role if chairman Mrs Moo who is a NED with
Significant income from SSC
On board of several charities and public bodies
1d. Write a letter to
– Shareholders of importance of communication in relation to corporate governance
– institutional shareholders of importance of their support

2. Fortune Investments fund manager Mr Krank
Wealthy. Lives lavish lifestyle
Recent misfortunes make him commit fraud
A. Criticise how the fund manager has breached his duty to clients and how the risk assessment failures at Fortune have led to the breach of duty
B. Explain value of good quality information in context of Fortune investment
C. Explain Ethical relativisim and how the fund managers fraudulent action cannot be argued using relativist approach

3. Osaka petroleum
Similar to BP
Had an oil spill.

A.Explain environmental risk and suggest ways of identifying these risks and recommend how to mitigate them
B. Describe a framework to assess the risks
C. Explain Integrated Reporting and how the 6 capitals will incorporate the stakeholder and shareholder views