Corporate Governance Quiz

What is the main focus of Management in an organization?

• Setting Policy

• Strategy Formulation

• Monitoring and Supervision

• Day-to-day operations

Who is responsible for leading and managing the entire organization?

• Chairman of the board

• Stakeholders

• Board of Directors

• CEO

According to the Agency Theory, who cannot be trusted to act in the best interest of the company owners?

• Stakeholders

• Shareholders

• Board of Directors

• Managers

What theory suggests that board members should actively develop resources for a competitive advantage?

• Stakeholder Theory

• Resource Dependency Theory

• Agency Theory

• Stewardship Theory

Who are considered the owners of the company through their stock shares?

• Stakeholders

• Board of Directors

• Shareholders

• CEO

What is the main function of the Board related to ensuring the company is run efficiently and effectively?

• Setting Policy

• Monitoring and Supervision

• Accountability

• Strategy Formulation

Which theory encourages boards to consider stakeholders' concerns for organizational success?

• Stewardship Theory

• Agency Theory

• Resource Dependency Theory

• Stakeholder Theory

Who governs the organization and ensures it is steered in the right direction?

• Management

• Board of Directors

• CEO

• Stakeholders

What group of people are affected by how a corporation operates?

• Board of Directors

• Shareholders

• Stakeholders

• Managers

What is the structure that protects stakeholders from possible corporate scandals?

• Management

• CEO

• Board of Directors

• Corporate Governance