Quiz 2_Corporate Governance Quiz

What is the primary purpose of the SEC Code of Corporate Governance for publicly-listed companies?

• To increase company profits

• To establish a framework for ethical business practices

• To ensure compliance with tax regulations

• To provide guidelines for corporate social responsibility

Which of the following is NOT a recommended committee under the SEC Code of Corporate Governance?

• Audit Committee

• Corporate Governance Committee

• Board Risk Oversight Committee

• Marketing Committee

According to the SEC Code, what is the role of the Board of Directors in relation to management?

• To manage daily operations

• To provide oversight and strategic guidance

• To handle employee grievances

• To conduct internal audits

Which principle emphasizes the Board's responsibility to ensure the integrity of financial reports?

• Transparency and Full Disclosure

• Accountability

• Corporate Control

• Ethical Responsibility

What is the maximum number of publicly-listed companies a non-executive director should serve concurrently, as recommended?

• Three

• Five

• Seven

• Nine

Which of the following is considered a ground for the permanent disqualification of a director?

• Frequent absences in board meetings

• Conviction of an offense involving moral turpitude

• Holding shares in a competing company

• Failure to disclose conflict of interest

What is the main objective of corporate governance?

• To maximize shareholder value

• To ensure compliance with environmental laws

• To promote corporate philanthropy

• To enhance employee satisfaction

Which unethical practice involves a director holding positions in two companies that do business with each other?

• Insider trading

• Interlocking directorship

• Plain graft

• Negligence of duty

What does the term 'insider trading' refer to?

• Trading company shares within a closed group

• Using confidential information to trade shares for personal gain

• Trading shares without proper authorization

• Manipulating stock prices through false information

Which of the following is an example of deceptive packaging?

• Using eco-friendly materials

• Mislabeling the weight of a product

• Offering discounts on bulk purchases

• Providing detailed product information