Corporate Governance Quiz

What is corporate governance primarily concerned with?

• Marketing strategies

• Managing conflicts between shareholders and managers

• Reducing costs

• Product innovation

According to the Cadbury Report (1992), corporate governance is defined as:

• A strategy for maximizing profits

• A system of controls by which a company is directed and controlled

• A process to expand market share

• A method for enhancing operational efficiency

Which theory primarily addresses conflicts of interest between principals and agents?

• Stewardship theory

• Agency theory

• Resource dependency theory

• Transaction cost economics

What does the Malaysian Code on Corporate Governance (MCCG) highlight?

• Technological innovation

• Strengthening board structures and ensuring accountability

• Expanding international markets

• Improving production efficiency

Which theory views managers as good stewards working for the best interests of shareholders?

• Stakeholder theory

• Stewardship theory

• Agency theory

• Managerial hegemony theory

What is the key goal of corporate governance, as defined by the OECD (1999)?

• Profit maximization

• Maintaining relationships between a company's board, shareholders, and stakeholders

• Expanding product lines

• Reducing employee turnover

Which theory suggests that boards act as a bridge to access external resources?

• Legalistic perspective

• Resource dependency theory

• Resource-based view

• Managerial hegemony theory

Which of the following is a characteristic of diffused ownership?

• Few large shareholders

• Many small shareholders

• Ownership concentrated within the board

• Exclusively family-owned companies

What is the role of the board of directors in corporate governance?

• Marketing decisions

• Overseeing management and ensuring accountability

• Implementing IT systems

• Setting employee salaries

Which theory is closely related to transaction cost economics?

• Agency theory

• Stewardship theory

• Managerial hegemony

• Stakeholder theory