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Fundamentals of Business Economics

1.4 Which of the following is not a prime objective of corporate governance?

A to control directors’ activities

B to improve the way companies are run

C to improve employee’s working conditions

D to protect shareholder interests

1.5 A business makes a profit for the year of $1,100,000. From this it deducts
interest of $150,000, tax of $285,000, preference share dividends of $200,000
and an ordinary dividend of $250,000. It has $1m of shares in issue, each with a
nominal value of $0.5.

What is the earnings per share figure for the business for the year?

Answer ………………… (give your answer to 2 d.p.)

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