BEC EXAM
Corporate Governance
Board of Directors
Monitor Management Behavior
Corporate Governance Committee
Oversees the Board
Responsible for hiring new CEOs
Audit Committee
Appoint and Oversee External Auditors
Compensation Committee
Responsible for CEOs compensation package
Sarbanes Oxley Act
International Internal Auditing Standards
COSO Framework
Internal Control
Enterprise Risk Management
Executive Compensation
Management must match Shareholders goal
Influences that help mold the direction of Management are from internal (Board of Directors, Audit Committee, Internal Control) to external (Creditors, SEC, IRS)
Management should not disrupt Influence
Shirking
Management doesn't act in the best interest of Shareholders
Tie management compensation to company profit
IT
Segregated IT Roles
Operaters
Programmers
Librarians
Systems Analyst
Systems Administrator
Systems Programmer
Systems Operator
Compensating Controls
Capital Budgeting
Risk Management
Performance Measures
Economics
Supply
Supply Curve
When the price of an item increases, supply increases
More sellers are willing to sell
Supply Curve shift- Supply changes due to something other than price
Positive Supply Curve shift
Supply increases at each price point
Higher Equilibrium GDP
Number of sellers increase
Technology Improvements
Fast internet makes ecommerce efficient
Negative Supply Curve Shift
Supply decreases at each price point
Lower Equilibrium GDP
Cost of Producing item increseases