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This set of Corporate Governance Multiple Choice Questions & Answers (MCQs) focuses on Corporate Governance Set 1
Q1 | The framework for establishing good corporate governance and accountability was originallysetup by
- Nestle committee
- Rowntree committee
- Cadbury committee
- Thornton committee
Q2 | Which of the following is not one of the underlying principles of the corporate governancecombined code of practice?
- Accountability
- Openness
- Acceptability
- Integrity
Q3 | External audit of the accounts of a limited company is required?
- Because it is demanded by the company’s bankers
- By the companies act 2006
- At the discretion of the shareholders
- To detect fraud
Q4 | Directors responsibilities are unlikely to include
- a duty to keep proper accounting records
- a fiduciary duty
- a duty to propose high dividends for shareholders
- a duty of care
Q5 | A company may become insolvent if it
- makes a loss
- has negative working capital
- cannot meet its budgeted level of profit
- cannot pay creditors in full after realisation of its assets
Q6 | Fraudulent trading may be
- a criminal offence committed only by directors of a limited company
- a civil and a criminal offence committed by an employee
- a civil and a criminal offence committed only by directors of a limited company
- a civil offence committed by an employee
Q7 | A director of a limited company may not be liable for wrongful trading if he or she
- increased the valuation of its inventories to cover any potential shortfall
- brought in some expected sales from next year in to the current year
- took every step to minimise the potential loss to creditors
- introduce into the balance sheet an asset based on a valuation of its brands sufficient to meet
Q8 | Disqualification of directors may result from breaches under the
- Health and Safety Act
- Financial Services Act
- Sale of Goods Act
- Companies Act
Q9 | According to clause 49 on independent directors. What should be minimum age of independentdirector.
- 21
- 22
- 23
- 24
Q10 | who formed the ICGN?
- European government
- US share holders
- Pension funds
- Stock markets
Q11 | A company cannot issue redeemable preference shares for a period exceeding
- 5 year
- 10 years
- 15 years
- 20 years
Q12 | which one is the dimension(approach) of corporate social responsibility?
- Corporate philanthropy
- Stake holders priorities and sustainable development
- Ethical business
- All of the above
Q13 | According to clause 49 on independent directors. What can be maximum tenure ofindependent director.
- 2 terms of 5 years each
- 3 terms of 5 years each
- 2 terms of 10 years each
- 3 terms of 4 years each
Q14 | According to section 179 which one of the following is a power of director?
- To buy back its shares
- Sell lease or otherwise dispose of the undertakings of the company
- Remit or give time for the repayment of any debt due by a director
- Making political contributions exceeding specified limits
Q15 | What is kieretsu
- Pension fund
- Corporate group
- Stock exchange
- Futures Market
Q16 | The concept of Corporate Social Responsibility originated in which time period?
- 1920’s and 1930’
- 19th Century
- 1980’s and 1990’s
- 1960’s and 1970’s
Q17 | Worldwide, about percent of businesses in the private sector are small ormedium sized.
- 80
- 85
- 90
- 99
Q18 | The generally accepted definition of a small business is one with or feweremployees.
- 10
- 20
- 25
- 50
Q19 | The generally accepted definition of a medium business is one with or feweremployees.
- 50
- 100
- 200
- 250
Q20 | In the United States, small or medium sized businesses provide over percent oftotal employment.
- 25
- 40
- 50
- 75
Q21 | Owners of stock in a corporation are only liable for .
- the amount they have invested in the company’s stock
- their personal assets
- the amount they have invested in the company’s stock and their personal assets
- none of the above.
Q22 | A of an issue consists of weighing and balancing all of the competingdemands on a firm by each of those who have a claim on it.
- stakeholder analysi
- board of directors analysis
- corporation analysis
- management analysis
Q23 | The that corporations must meet is “do no harm”.
- moral obligation
- moral minimum
- moral requirement
- moral duty
Q24 | In large corporations, the is/are the legal overseers of management.
- CEO
- shareholders
- board members
- none of the above
Q25 | The position is that a corporation can and should be evaluated not only in terms of its financial bottom line, but also in terms of its environmental bottom line and its social/ethical bottom line.
- Bottom line
- Double Bottom line
- Triple Bottom line
- Final line