Financial Management And Corporate Governance

Current liability refers to the debts or obligations that a company is expected to pay off within a period of one year. These can include short-term loans, accounts payable, accrued expenses, and other similar obligations. Current liabilities are an important aspect of a company's financial health as they represent the company's short-term financial obligations and its ability to meet them. Therefore, the correct answer is current liability.

Corporate governance refers to the system and structure through which companies are directed and controlled. It encompasses the processes, policies, and regulations that ensure transparency, accountability, and fairness in the decision-making and management of a company. It involves the relationship between the board of directors, management, shareholders, and other stakeholders, and aims to promote ethical behavior, protect the interests of shareholders, and enhance the long-term value of the company. Corporate governance is crucial for maintaining investor confidence, attracting investment, and ensuring the sustainable growth and success of a company.

The given answer states that corporate values are not made mandatory under statutory laws and failure to comply does not amount to a legal breach. This means that organizations are not legally obligated to have corporate values. However, the other options provide valid reasons for organizations to have value-based codes and incorporate values into their corporate strategies. Corporate values provide guidance to staff, ensure consistency of conduct, and support risk management strategies and reputation.

The share exchange ratio refers to the ratio between the shares of the target firm and the acquiring firm. This ratio determines how many shares of the acquiring firm will be exchanged for each share of the target firm in a merger or acquisition. It is an important factor in determining the ownership structure and value of the merged entity.

A merger involves the combination of two or more companies into one entity. In this process, various aspects are involved, including the transfer of assets, management, and control. Asset transfer refers to the transfer of property, rights, and liabilities from one company to another. Management transfer involves the integration of the management teams of the merging companies, where decisions are made collectively. Control transfer refers to the transfer of ownership and decision-making power from one company to another. Therefore, all of the above options accurately describe the basic features of a merger.

Insufficient working capital refers to a situation where a company does not have enough funds to cover its day-to-day operational expenses. This can lead to a lack of smooth flow of production as the company may struggle to purchase raw materials, pay employees, or maintain equipment. Without adequate working capital, the company may face delays in production, interruptions in the supply chain, and difficulties in meeting customer demands. Therefore, the lack of smooth flow of production is a direct consequence of insufficient working capital.

Current assets are all assets that can readily convert to cash to pay outstanding debts and cover liabilities. These assets include cash, cash equivalents, accounts receivable, inventory, and short-term investments. They are expected to be converted into cash within a year or the normal operating cycle of a business. Current assets are important for assessing a company's liquidity and ability to meet its short-term obligations. By having a sufficient amount of current assets, a company can ensure that it has the necessary funds to cover its immediate financial obligations.

The Supreme Court is the highest court in Nigeria. It is the final appellate court in the country and has the ultimate authority to interpret and apply the law. The Supreme Court is responsible for hearing appeals from lower courts and has the power to make final decisions on legal matters. It plays a crucial role in ensuring the uniformity and consistency of the law in Nigeria.

The management of current assets refers to the process of effectively managing and controlling the current assets of a company. This involves ensuring that there is an adequate level of working capital to meet short-term obligations and optimizing the use of current assets to generate maximum returns. Therefore, the correct answer is "Both a & b" as both "Current asset management" and "Working capital management" are terms used to describe the management of current assets.

The question is asking about the extent to which an organization recycles waste and paper, which is related to the social responsibility of the organization. Social responsibility refers to the ethical and moral obligations of an organization to contribute to the welfare of society and the environment. By recycling waste and paper, an organization demonstrates its commitment to sustainable practices and reducing its impact on the environment. Therefore, the correct answer is social responsibility of an organization.

The performance of an existing contract in return for a promise by a third party constitutes good consideration. This is because both parties are exchanging something of value - the performance of the contract and the promise by the third party. In contrast, the performance of an existing duty under the general law does not involve any new consideration, and the performance of an act followed by a promise to pay for that act is considered past consideration, which is generally not considered good consideration.

Economy of scope refers to the efficiencies primarily associated with demand side changes, such as increasing or decreasing the scope of marketing and distribution, of different types of products. This means that by expanding or reducing the range of products offered, a company can optimize its marketing and distribution efforts to reach a wider or more targeted audience, resulting in cost savings and improved profitability. It allows companies to leverage their existing resources and capabilities to serve multiple product lines, thereby reducing costs and increasing overall efficiency.

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Legal and disciplinary frameworks provide an effective means of challenging serious wrong-doing, deterrents to bad practice through punishment and censure, and means of controlling behavior. However, they do not solely provide financial compensation to the affected parties.

If current assets are less than current liabilities, it means that the entity does not have enough short-term resources to cover its short-term obligations. This situation is known as a working capital deficiency. It indicates that the entity may have difficulty in meeting its immediate financial obligations and may need to rely on external sources of funding or take measures to improve its cash flow.

A low number of days indicates that the company collects its outstanding receivables quickly. This means that the company is efficient in collecting payments from its customers or clients. It suggests that the company has effective credit and collection policies in place, which helps in minimizing the time taken to receive payments for goods or services provided. This is beneficial for the company's cash flow and overall financial health.

The correct answer is "i only" because the first statement acknowledges that a company director could act in breach of the duty of care, which refers to the responsibility to act in the best interest of the company and its stakeholders. However, it also states that the director could still comply with the principles of corporate governance, which are guidelines and practices that ensure the company is managed effectively and ethically. This means that even if a director fails in their duty of care, they could still adhere to the broader principles of corporate governance. The second statement is not mentioned in the explanation.

A decree of specific performance is not available as a remedy for a breach of a contract to provide personal services. Specific performance is a legal remedy where the court orders the breaching party to fulfill their contractual obligations. However, personal services are considered unique and cannot be forced upon someone. Therefore, the court cannot order specific performance for personal services.

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Damages is not an equitable remedy because it is a legal remedy. Equitable remedies are those that are granted by a court of equity, such as specific performance, rescission, and injunction. Damages, on the other hand, are a monetary award given to the injured party to compensate for their loss. While damages can be awarded in both legal and equitable cases, they are not considered an equitable remedy in and of themselves.