Corporate Governance Quiz

When did the United States become the first country to use the term 'corporate governance'?

• 1940s

• 1992

• 1970s

• 1980s

What is the main objective of corporate governance related to transparency and disclosure?

• Enhancing Transparency and Disclosure

• Protecting Shareholders' Rights

• Ensuring Accountability

• Improving Corporate Performance

What is the key difference between governance and management?

• Governance involves enforcing rules, while management involves setting objectives

• Governance is making and enforcing rules, while management is the application of those rules

• Governance is the day-to-day operations, while management is making and enforcing rules

• Governance involves setting objectives, while management involves enforcing rules

What is the consequence of poor corporate governance for large public companies?

• Increased shareholder returns

• Enhanced market discipline

• Difficulty in attracting foreign investment

• Improved financial reporting

What is the purpose of corporate governance related to shareholders' rights?

• Ensuring Accountability

• Enhancing Transparency and Disclosure

• Improving Corporate Performance

• Protecting Shareholders' Rights

What was the milestone in corporate governance in 1992 according to the text?

• The U.K. Corporate Governance Code

• The Sarbanes-Oxley Act

• The Cadbury Committee Report

• The rise of conflicts of interest

What is the main reason for the emergence of corporate governance related to financial crises?

• Financial Crises and Economic Downturns

• Improvement of Corporate Performance

• Market Discipline

• Promotion of Ethical Conduct

What is the definition of corporate governance according to the OECD?

• It is a framework for effective management of a company

• It is a system by which companies are directed and controlled

• It is a set of relationships between the board of directors and shareholders

• It is a structure through which the objectives of the company are set

What is one of the objectives of corporate governance related to promoting ethical conduct and corporate responsibility?

• Maximizing short-term gains

• Encouraging a culture of ethical behavior

• Ignoring laws and regulations

• Avoiding stakeholder engagement

What is a key component of corporate governance that involves a balanced mix of executive and non-executive directors?

• Stakeholders

• Board of Directors

• Shareholders

• Management