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Passage - 2
Corporate governance is based on principles such as conducting the business with all integrity and fairness, being transparent with regard to all transactions, making all the necessary disclosures and decisions, complying with all the laws of the land, accountability and responsibility towards the stakeholders and commitment to conducting business in an ethical manner. Another point which is highlighted on corporate governance is the need for those in control to be able to distinguish between what are personal and corporate funds while managing a company.
Fundamentally, there is a level of confidence that is associated with a company that is known to have good corporate governance. The presence of an active group of independent directors on the board contributes a great deal towards ensuring confidence in the market. Corporate governance is known to be one of the criteria that foreign institutional investors are increasingly depending on when deciding on which companies to invest in. It is also known to have a positive influence on the share price of the company. Having a clean image on the corporate governance front could also make it easier for companies to source capital at more reasonable costs. Unfortunately, corporate governance often becomes the centre of discussion only after the exposure of a large scam.
 
Q.According to the passage, which of the following is/are the major benefit/benefits of good corporate governance?
1. Good corporate governance leads to increase in share price of the company.
2. A company with good corporate governance always increases its business turnover rapidly.
3. Good corporate governance is the main criterion for foreign institutional investors when they decide to buy a company.
  • a)
    1 only
  • b)
    2 and 3 only
  • c)
    1 and 3 only
  • d)
    1, 2 and 3
Correct answer is option 'A'. Can you explain this answer?
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Passage - 2Corporate governance is based on principles such as conduct...
In statement 3, the word “main” is an extreme word and you need to be careful while picking.
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Passage - 2Corporate governance is based on principles such as conduct...
Benefits of Good Corporate Governance

1. Increase in share price:
Good corporate governance is known to have a positive influence on the share price of the company. Companies with strong corporate governance practices are often viewed more favorably by investors, leading to an increase in their share price.

2. Attractiveness to foreign institutional investors:
Foreign institutional investors increasingly rely on good corporate governance as a key criterion when deciding on which companies to invest in. Companies with robust governance structures are seen as more reliable and trustworthy, making them attractive investment options for foreign investors.

Therefore, based on the information provided in the passage, the major benefits of good corporate governance are an increase in share price and attractiveness to foreign institutional investors.
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Passage - 2Corporate governance is based on principles such as conducting the business with all integrity and fairness, being transparent with regard to all transactions, making all the necessary disclosures and decisions, complying with all the laws of the land, accountability and responsibility towards the stakeholders and commitment to conducting business in an ethical manner. Another point which is highlighted on corporate governance is the need for those in control to be able to distinguish between what are personal and corporate funds while managing a company.Fundamentally, there is a level of confidence that is associated with a company that is known to have good corporate governance. The presence of an active group of independent directors on the board contributes a great deal towards ensuring confidence in the market. Corporate governance is known to be one of the criteria that foreign institutional investors are increasingly depending on when deciding on which companies to invest in. It is also known to have a positive influence on the share price of the company. Having a clean image on the corporate governance front could also make it easier for companies to source capital at more reasonable costs. Unfortunately, corporate governance often becomes the centre of discussion only after the exposure of a large scam.Q.According to the passage, which of the following should be the practice/practices in good corporate governance?1. Companies should always comply with labour and tax laws of the land.2. Every company in the country should have a government representative as one of the independent directors on the board to ensure transparency.3. The manager of a company should never invest his personal, funds in the company.

Accountability, or the lack of it, in governance generally, and civil services, in particular, is a major factor underlying the deficiencies in governance and public administration. Designing an effective framework for accountability has been a key element of the reform agenda. A fundamental issue is whether civil services should be accountable to the political executive of the day or to society at large. In other words, how should internal and external accountability be reconciled? Internal accountability is sought to be achieved by internal performance monitoring, official supervision by bodies like the —Central-Vigilance Commission-andComptroller and Auditor—General, and judicial review of executive decisions. Articles 311 and 312 of the Indian Constitution provide job security and safeguards to the civil services, especially the All India Services. The framers of the Constitution had envisaged that provision of these safeguards would result in a civil service that is not totally subservient to the political executive but will have the strength to function in larger public interest. The need to balance internal and external accountability is thus built into the Constitution. The issue is where to draw the line. Over the years, the emphasis seems to have tilted in favour of greater internal accountability of the civil services to the political leaders of the day who in turn are expected to be externally accountable to the society at large through the election process. This system for seeking accountability to Society has not worked out, and has led to several adverse consequences for governance.Some special measures can be considered for improving accountability in civil services.Provisions of articles 311 and 312 should be reviewed and laws and regulations framed to ensure external accountability of civil services. The proposed Civil Services Bill seeks to address some of these requirements. The respective roles of professional civil services and the political executive should he defined so that professional managerial functions and management of civil services are depoliticized. For this purpose, effective statutory civil service boards should be created at the centre and in the states. Decentralization and devolution of authority to bring government and decision making closer to the people also helps to enhance accountability.Q. According to the passage, which of the following factor/factors led to the adverse consequences for governance/public administration?1. Inability of civil services to strike a balance between internal and external accountabilities2. Lack of sufficient professional training to the officers of All India Services 3. Lack of proper service benefits in civil services4. Lack of Constitutional provisions to define the respective roles of professional civil services vis-a-vis political executive in this context Select the correct answer using the code given below

Accountability, or the lack of it, in governance generally, and civil services, in particular, is a major factor underlying the deficiencies in governance and public administration. Designing an effective framework for accountability has been a key element of the reform agenda. A fundamental issue is whether civil services should be accountable to the political executive of the day or to society at large. In other words, how should internal and external accountability be reconciled? Internal accountability is sought to be achieved by internal performance monitoring, official supervision by bodies like the —Central-Vigilance Commission-andComptroller and Auditor—General, and judicial review of executive decisions. Articles 311 and 312 of the Indian Constitution provide job security and safeguards to the civil services, especially the All India Services. The framers of the Constitution had envisaged that provision of these safeguards would result in a civil service that is not totally subservient to the political executive but will have the strength to function in larger public interest. The need to balance internal and external accountability is thus built into the Constitution. The issue is where to draw the line. Over the years, the emphasis seems to have tilted in favour of greater internal accountability of the civil services to the political leaders of the day who in turn are expected to be externally accountable to the society at large through the election process. This system for seeking accountability to Society has not worked out, and has led to several adverse consequences for governance.Some special measures can be considered for improving accountability in civil services.Provisions of articles 311 and 312 should be reviewed and laws and regulations framed to ensure external accountability of civil services. The proposed Civil Services Bill seeks to address some of these requirements. The respective roles of professional civil services and the political executive should he defined so that professional managerial functions and management of civil services are depoliticized. For this purpose, effective statutory civil service boards should be created at the centre and in the states. Decentralization and devolution of authority to bring government and decision making closer to the people also helps to enhance accountability.Q. Which one of the following is the essential message implied by this passage?

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Passage - 2Corporate governance is based on principles such as conducting the business with all integrity and fairness, being transparent with regard to all transactions, making all the necessary disclosures and decisions, complying with all the laws of the land, accountability and responsibility towards the stakeholders and commitment to conducting business in an ethical manner. Another point which is highlighted on corporate governance is the need for those in control to be able to distinguish between what are personal and corporate funds while managing a company.Fundamentally, there is a level of confidence that is associated with a company that is known to have good corporate governance. The presence of an active group of independent directors on the board contributes a great deal towards ensuring confidence in the market. Corporate governance is known to be one of the criteria that foreign institutional investors are increasingly depending on when deciding on which companies to invest in. It is also known to have a positive influence on the share price of the company. Having a clean image on the corporate governance front could also make it easier for companies to source capital at more reasonable costs. Unfortunately, corporate governance often becomes the centre of discussion only after the exposure of a large scam.Q.According to the passage, which of the following is/are the major benefit/benefits of good corporate governance?1. Good corporate governance leads to increase in share price of the company.2. A company with good corporate governance always increases its business turnover rapidly.3. Good corporate governance is the main criterion for foreign institutional investors when they decide to buy a company.a)1 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer?
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Passage - 2Corporate governance is based on principles such as conducting the business with all integrity and fairness, being transparent with regard to all transactions, making all the necessary disclosures and decisions, complying with all the laws of the land, accountability and responsibility towards the stakeholders and commitment to conducting business in an ethical manner. Another point which is highlighted on corporate governance is the need for those in control to be able to distinguish between what are personal and corporate funds while managing a company.Fundamentally, there is a level of confidence that is associated with a company that is known to have good corporate governance. The presence of an active group of independent directors on the board contributes a great deal towards ensuring confidence in the market. Corporate governance is known to be one of the criteria that foreign institutional investors are increasingly depending on when deciding on which companies to invest in. It is also known to have a positive influence on the share price of the company. Having a clean image on the corporate governance front could also make it easier for companies to source capital at more reasonable costs. Unfortunately, corporate governance often becomes the centre of discussion only after the exposure of a large scam.Q.According to the passage, which of the following is/are the major benefit/benefits of good corporate governance?1. Good corporate governance leads to increase in share price of the company.2. A company with good corporate governance always increases its business turnover rapidly.3. Good corporate governance is the main criterion for foreign institutional investors when they decide to buy a company.a)1 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Passage - 2Corporate governance is based on principles such as conducting the business with all integrity and fairness, being transparent with regard to all transactions, making all the necessary disclosures and decisions, complying with all the laws of the land, accountability and responsibility towards the stakeholders and commitment to conducting business in an ethical manner. Another point which is highlighted on corporate governance is the need for those in control to be able to distinguish between what are personal and corporate funds while managing a company.Fundamentally, there is a level of confidence that is associated with a company that is known to have good corporate governance. The presence of an active group of independent directors on the board contributes a great deal towards ensuring confidence in the market. Corporate governance is known to be one of the criteria that foreign institutional investors are increasingly depending on when deciding on which companies to invest in. It is also known to have a positive influence on the share price of the company. Having a clean image on the corporate governance front could also make it easier for companies to source capital at more reasonable costs. Unfortunately, corporate governance often becomes the centre of discussion only after the exposure of a large scam.Q.According to the passage, which of the following is/are the major benefit/benefits of good corporate governance?1. Good corporate governance leads to increase in share price of the company.2. A company with good corporate governance always increases its business turnover rapidly.3. Good corporate governance is the main criterion for foreign institutional investors when they decide to buy a company.a)1 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Passage - 2Corporate governance is based on principles such as conducting the business with all integrity and fairness, being transparent with regard to all transactions, making all the necessary disclosures and decisions, complying with all the laws of the land, accountability and responsibility towards the stakeholders and commitment to conducting business in an ethical manner. Another point which is highlighted on corporate governance is the need for those in control to be able to distinguish between what are personal and corporate funds while managing a company.Fundamentally, there is a level of confidence that is associated with a company that is known to have good corporate governance. The presence of an active group of independent directors on the board contributes a great deal towards ensuring confidence in the market. Corporate governance is known to be one of the criteria that foreign institutional investors are increasingly depending on when deciding on which companies to invest in. It is also known to have a positive influence on the share price of the company. Having a clean image on the corporate governance front could also make it easier for companies to source capital at more reasonable costs. Unfortunately, corporate governance often becomes the centre of discussion only after the exposure of a large scam.Q.According to the passage, which of the following is/are the major benefit/benefits of good corporate governance?1. Good corporate governance leads to increase in share price of the company.2. A company with good corporate governance always increases its business turnover rapidly.3. Good corporate governance is the main criterion for foreign institutional investors when they decide to buy a company.a)1 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer?.
Solutions for Passage - 2Corporate governance is based on principles such as conducting the business with all integrity and fairness, being transparent with regard to all transactions, making all the necessary disclosures and decisions, complying with all the laws of the land, accountability and responsibility towards the stakeholders and commitment to conducting business in an ethical manner. Another point which is highlighted on corporate governance is the need for those in control to be able to distinguish between what are personal and corporate funds while managing a company.Fundamentally, there is a level of confidence that is associated with a company that is known to have good corporate governance. The presence of an active group of independent directors on the board contributes a great deal towards ensuring confidence in the market. Corporate governance is known to be one of the criteria that foreign institutional investors are increasingly depending on when deciding on which companies to invest in. It is also known to have a positive influence on the share price of the company. Having a clean image on the corporate governance front could also make it easier for companies to source capital at more reasonable costs. Unfortunately, corporate governance often becomes the centre of discussion only after the exposure of a large scam.Q.According to the passage, which of the following is/are the major benefit/benefits of good corporate governance?1. Good corporate governance leads to increase in share price of the company.2. A company with good corporate governance always increases its business turnover rapidly.3. Good corporate governance is the main criterion for foreign institutional investors when they decide to buy a company.a)1 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Passage - 2Corporate governance is based on principles such as conducting the business with all integrity and fairness, being transparent with regard to all transactions, making all the necessary disclosures and decisions, complying with all the laws of the land, accountability and responsibility towards the stakeholders and commitment to conducting business in an ethical manner. Another point which is highlighted on corporate governance is the need for those in control to be able to distinguish between what are personal and corporate funds while managing a company.Fundamentally, there is a level of confidence that is associated with a company that is known to have good corporate governance. The presence of an active group of independent directors on the board contributes a great deal towards ensuring confidence in the market. Corporate governance is known to be one of the criteria that foreign institutional investors are increasingly depending on when deciding on which companies to invest in. It is also known to have a positive influence on the share price of the company. Having a clean image on the corporate governance front could also make it easier for companies to source capital at more reasonable costs. Unfortunately, corporate governance often becomes the centre of discussion only after the exposure of a large scam.Q.According to the passage, which of the following is/are the major benefit/benefits of good corporate governance?1. Good corporate governance leads to increase in share price of the company.2. A company with good corporate governance always increases its business turnover rapidly.3. Good corporate governance is the main criterion for foreign institutional investors when they decide to buy a company.a)1 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Passage - 2Corporate governance is based on principles such as conducting the business with all integrity and fairness, being transparent with regard to all transactions, making all the necessary disclosures and decisions, complying with all the laws of the land, accountability and responsibility towards the stakeholders and commitment to conducting business in an ethical manner. Another point which is highlighted on corporate governance is the need for those in control to be able to distinguish between what are personal and corporate funds while managing a company.Fundamentally, there is a level of confidence that is associated with a company that is known to have good corporate governance. The presence of an active group of independent directors on the board contributes a great deal towards ensuring confidence in the market. Corporate governance is known to be one of the criteria that foreign institutional investors are increasingly depending on when deciding on which companies to invest in. It is also known to have a positive influence on the share price of the company. Having a clean image on the corporate governance front could also make it easier for companies to source capital at more reasonable costs. Unfortunately, corporate governance often becomes the centre of discussion only after the exposure of a large scam.Q.According to the passage, which of the following is/are the major benefit/benefits of good corporate governance?1. Good corporate governance leads to increase in share price of the company.2. A company with good corporate governance always increases its business turnover rapidly.3. Good corporate governance is the main criterion for foreign institutional investors when they decide to buy a company.a)1 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Passage - 2Corporate governance is based on principles such as conducting the business with all integrity and fairness, being transparent with regard to all transactions, making all the necessary disclosures and decisions, complying with all the laws of the land, accountability and responsibility towards the stakeholders and commitment to conducting business in an ethical manner. Another point which is highlighted on corporate governance is the need for those in control to be able to distinguish between what are personal and corporate funds while managing a company.Fundamentally, there is a level of confidence that is associated with a company that is known to have good corporate governance. The presence of an active group of independent directors on the board contributes a great deal towards ensuring confidence in the market. Corporate governance is known to be one of the criteria that foreign institutional investors are increasingly depending on when deciding on which companies to invest in. It is also known to have a positive influence on the share price of the company. Having a clean image on the corporate governance front could also make it easier for companies to source capital at more reasonable costs. Unfortunately, corporate governance often becomes the centre of discussion only after the exposure of a large scam.Q.According to the passage, which of the following is/are the major benefit/benefits of good corporate governance?1. Good corporate governance leads to increase in share price of the company.2. A company with good corporate governance always increases its business turnover rapidly.3. Good corporate governance is the main criterion for foreign institutional investors when they decide to buy a company.a)1 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Passage - 2Corporate governance is based on principles such as conducting the business with all integrity and fairness, being transparent with regard to all transactions, making all the necessary disclosures and decisions, complying with all the laws of the land, accountability and responsibility towards the stakeholders and commitment to conducting business in an ethical manner. Another point which is highlighted on corporate governance is the need for those in control to be able to distinguish between what are personal and corporate funds while managing a company.Fundamentally, there is a level of confidence that is associated with a company that is known to have good corporate governance. The presence of an active group of independent directors on the board contributes a great deal towards ensuring confidence in the market. Corporate governance is known to be one of the criteria that foreign institutional investors are increasingly depending on when deciding on which companies to invest in. It is also known to have a positive influence on the share price of the company. Having a clean image on the corporate governance front could also make it easier for companies to source capital at more reasonable costs. Unfortunately, corporate governance often becomes the centre of discussion only after the exposure of a large scam.Q.According to the passage, which of the following is/are the major benefit/benefits of good corporate governance?1. Good corporate governance leads to increase in share price of the company.2. A company with good corporate governance always increases its business turnover rapidly.3. Good corporate governance is the main criterion for foreign institutional investors when they decide to buy a company.a)1 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Passage - 2Corporate governance is based on principles such as conducting the business with all integrity and fairness, being transparent with regard to all transactions, making all the necessary disclosures and decisions, complying with all the laws of the land, accountability and responsibility towards the stakeholders and commitment to conducting business in an ethical manner. Another point which is highlighted on corporate governance is the need for those in control to be able to distinguish between what are personal and corporate funds while managing a company.Fundamentally, there is a level of confidence that is associated with a company that is known to have good corporate governance. The presence of an active group of independent directors on the board contributes a great deal towards ensuring confidence in the market. Corporate governance is known to be one of the criteria that foreign institutional investors are increasingly depending on when deciding on which companies to invest in. It is also known to have a positive influence on the share price of the company. Having a clean image on the corporate governance front could also make it easier for companies to source capital at more reasonable costs. Unfortunately, corporate governance often becomes the centre of discussion only after the exposure of a large scam.Q.According to the passage, which of the following is/are the major benefit/benefits of good corporate governance?1. Good corporate governance leads to increase in share price of the company.2. A company with good corporate governance always increases its business turnover rapidly.3. Good corporate governance is the main criterion for foreign institutional investors when they decide to buy a company.a)1 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. 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