310 corporate Governance multiple choice questions PDF

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1 governance is a system of rules, policies, and practices that dictate how – a. Company’s Board of directors manage b. oversee the operations c. oversee the operations d. All of the above Fiduciary relationship can be best understood as – a. Distrust b. unreal c. Unreliable d. None of the above 3 c...

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1.Corporate governance is a system of rules, policies, and practices that dictate how – a. Company’s Board of directors manage b. oversee the operations c. oversee the operations d. All of the above 2. Fiduciary relationship can be best understood as – a. Distrust b. unreal c. Unreliable d.None of the above 3.Weak corporate governance displaya. Noncooperation with auditors b. Bad executive compensation packages c. Poorly structured boards making it difficult for shareholders to oust ineffective incumbents. 4. Typical fiduciary relationships exist between – a. attorneys and clients, b. executors and legatees or heirs, c. guardians and wards, d. All of the above. 5. Bad corporate governance can cast doubt on a company's – a. reliability, b. integrity, c. transparency which can impact its financial health. d. All of the above 6. For many shareholders, it is not enough for a company to merely be profitable; it also needs to demonstrate good corporate citizenship througha. environmental awareness, b. unethical behavior c. unsound corporate governance practices d. All of the above 7. The board of directors must ensure that the company's corporate governance policies incorporate – a. the corporate strategy, b. risk management, c. ethical business practices. d. All of the above 8. One of the largest liabilities a corporation has is to its -

a. shareholders b. Customers c. Investors d. None of the above 9. The purpose of corporate governance is to help build – a. an environment of trust and transparency b. financial stability and business integrity c. Support for stronger growth and more inclusive societies. d. All of the above 10. According to the Brundtland Commission report Sustainable development is – a. the one that satisfies the needs of the present without jeopardizing the ability of future generations to meet their needs. b. The preservation of the green belts c. The one that does not think of the future but only of the present at stake. d. All of the above. 11. For the long-term corporate sustainability goal, the sustainable development concept is built on top of three important “pillars” that must be fulfilled by companies: a. economic development, b. social equity, c. environmental protection d. All of the above 12. The “corporate citizen” concept refers to a type of company that intends to put at the same level as its own interest a. the interest of society b. the interest of others c. the interest of MNCs d. None of the above 13. Companies can benefit from – a. philanthropy b. CSR programs c. Volunteer efforts d. All of the above 14. Following are the examples of bad goverance a. Siemens b. Volkswagen c. WorldCom. d. All of the above

15. Absence of corporate governance principles undermines – a. the financial viability of companies b. sound business strategies c.Accountable Board d. None of the above 16. Some of the Key indicators signal poor corporate governance practices likea. Weak management b. Lack of the financial literacy c. Lack of the knowledge to make informed decisions by the Board d. All of the above 17. Ricoh India is a classic example ofa.Good governance b. Bad governance c. No governance d. None of the above 18. Agency theory is a management and economic theory that attempts to explain – a. relationships , b. self-interest in business organizations, c. delegation of control d. All of the above 19. Ageny Theory explains how best to organise relationships in whicha. The Customer determines the work b. The agent performs or makes decisions on behalf of the principal c. The Organisation determines how to work d. None of the above 20. Following can be said to be examples of Agency Theorya. Govt. Vs Masses b. Employers Vs employees c. Owners Vs. Management d. All of the above...