ACTEX Learning Exam CB1 Formula & Review Sheet - Finance and Corporate Governance - Company Ownership

Sep 27, 2026

Uploaded by Blitz

ACTEX Learning Exam CB1 Formula & Review Sheet provides a rapid reference to key finance and corporate governance concepts, formulas, and core structures for exam study. It covers the Financial Reporting bodies and standards (IASB, IFRS, FRC), the UK Corporate Governance Code principles, major finance decision types, capital markets effects, and agency theory including agency problems and conflicts of interest. It also summarizes valuation-related items like present value and economic value added, then outlines business entity forms and ownership responsibilities.

LanguageEnglish

CategoryExam

FormatPDF

Pages21

Reading Time53 min

AccessFree to download

Finance and Corporate Governance

The Financial Reports

Corporate Governance

Financial Decisions

Agency Theory

Agency Costs and Conflicts of Interest

Value of an Asset and Present Value

Economic Value Added (EVA)

Company Ownership

Types of Business Entities

Formula & Review Sheet for Exam CB1 Your quick-reference guide for the most important formulas and concepts you need. Want More Than Just the Formula Sheet? This free Formula & Review Sheet is just one part of the ACTEX Learning experience. Our complete study program is designed to help you understand concepts, practice effectively, and pass with confidence. With the ACTEX Learning Bundle for Exam CB1, you get: Core Readings GOAL Practice Problems Flashcards Formula & Review Sheets Learning Platform with a Study Planner and Topic Explorer Want an Extra Edge? Take your preparation even further with premium ACTEX resources designed to sharpen exam skills and boost confidence when it matters most. Popular Upgrades: One-On-One Tutoring Learn More Click anywhere on this page or scan the QR code to learn more about offerings for this exam. ACTEX Learning Exam CB1 Formula & Review Sheet (updated 06/21/2024) FINANCE AND CORPORATE GOVERNANCE The Financial Reports The International Accounting Standards Board (IASB) International Financial Reporting Standards (IFRS) The Financial Reporting Council (FRC) Corporate Governance The main principles of the UK Corporate Governance Code are: Financial Decisions Investment Decision (Capital Budgeting Decision) Financing Decision Capital Markets Key effects of the capital marketson a firm’s decisions include: Agency Theory Agency Problem (Principal-Agent Problem) are used to help all stakeholders of an organisation in the decision-making process. is a body that develops, issues, and withdraws accounting standards. The standards that are issued by the IASB are currently called International Financial Reporting Standards (IFRSs) . These are a set of high-quality global standards with an objective of harmonising standards for international accounting. It is a body in the UK whose objective is to ensure high standards of reporting and audit to promote investor confidence, enable the capital markets to operate eﬀiciently and therefore to help drive economic growth. Its purpose is to facilitate effective, entrepreneurial and prudent management that can deliver the long-term success of the company. • Board Leadership and Company Purpose • Division of Responsibilities • Composition, Succession and Evaluation • Audit, Risk and Internal Control • Remuneration. Finance involves two basic issues: Investment Decisions; and Financing Decisions. It is the decision of investing or not in real assets in order to create value. It is the decision of choosing the best combination of different sources of funds to finance investment and the operations. refer to the financial markets where companies can raise funds by issuing various types of securities to investors. For large, publicly quoted companies, the stock market serves as a performance monitor. • Sound investment decisions require accurate measurement of the cost of capital. • Limitations in the supply of capital focus attention on methods of raising finance. • Mergers and takeovers create threats and opportunities to be exploited. • ‘Externalities’ require managers to determine the appropriate role of organisation. refers to the relationship between a principal (Shareholder) and an agent of that principal (Directors/Top Management), namely to situations when the former do not act in the best behalf of the former. It includes issues such asthe nature of the agency costs, conflicts of interest (and how to avoid them) and how agents may be motivated and incentivised. refers to a conflict of interest that may arise when the interest of the principal (shareholder) is not aligned with those of the agent (manager) . [www.ACTEXLearning.com](www.ACTEXLearning.com) Need Help? Email [support@actexlearning.com](support@actexlearning.com) Copyright © ArchiMedia Advantage Inc. All Rights Reserved ACTEX Learning Exam CB1 Formula & Review Sheet 2 Agency Cost

FAQs

What financial reporting standards and bodies are summarized in the sheet?

It lists the IASB, International Financial Reporting Standards (IFRS), and the Financial Reporting Council (FRC), describing their roles in setting and ensuring high reporting and audit standards.

How does the sheet explain corporate governance key principles?

It outlines main principles of the UK Corporate Governance Code, including board leadership and company purpose, division of responsibilities, composition/succession/evaluation, audit/risk/internal control, and remuneration.

What business entity types are included under company ownership?

It covers sole trader, partnership, limited companies, limited liability partnerships (LLP), public limited companies, private limited companies, and social enterprises, with brief descriptions of ownership and liability.

Sep 27, 2026

Uploaded by Blitz