Corporate Governance Final MCQ

What is corporate governance mainly concerned with?

• Marketing and advertising

• Financial auditing

• How companies are directed and controlled

• Product innovation

Which of the following best describes the purpose of corporate governance?

• To increase daily productivity in operations

• To ensure only the CEO makes decisions

• To provide structure and oversight in aligning management actions with stakeholder interests

• To reduce tax burdens for corporations

Corporate governance aims to balance the interests of:

• Only shareholders

• Government bodies

• Management team

• All stakeholders

Which of the following is a key principle of corporate governance?

• Exclusivity

• Transparency

• Centralization

• Aggressiveness

Why is the separation of ownership and control significant in corporate governance?

• It allows companies to bypass regulations

• It prevents management from acting in self-interest against shareholders

• It ensures tax benefits

• It reduces customer complaints

Who appoints the CEO in a corporation?

• Employees

• Government

• Shareholders

• Board of directors

What is a key responsibility of the board of directors?

• Hiring interns

• Setting strategic goals

• Conducting interviews

• Preparing tax returns

Which model gives ultimate control to the board of directors?

• Stakeholder Model

• Director Primacy Model

• Shareholder Primacy Model

• Managerial Model

What does board independence help reduce?

• Conflicts of interest

• Training time

• External risks

• Costs of production

What are the three main organs of governance in a corporation?

• CEO, CFO, COO

• Shareholders, Board of Directors, Management

• Audit Committee, Executive Team, Staff

• Chairperson, Shareholders, Legal Advisor