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CHAP 1, 2 & 3 SBL

Total questions: 30

Worksheet time: 28mins

Name
Class
Date
1.

Stakeholders are assessed via two axis,,

a)

Power & Influence

b)

Interest & Power

c)

Internal & external

d)

Direct & Indirect

2.

The Corporate Citizenship (Matten) talks about the following views EXCEPT

a)

Limited View

b)

Moderate view

c)

Equivalent View

d)

Extended VIEW

3.

CSR: According to Carrol, Ethical hierarchy refers to the following:

a)

Obeying the law is a requirement in all societies, though legal compliance imposes greater burdens in some societies than others

b)

To shareholders wanting dividends/capital gains, to employees wanting fair employment, to customers wanting good quality products

c)

Organisations are required to act in a fair and just way even if the law does not compel them to do so

d)

Charitable donations, contributions to local communities, and providing employees with the chances to improve their own lives

4.

Suggest some ways in which principals can align their interests with those of their agents in order to address the problems identified.


i-Performance-related pay

ii-Induction programme

iii-Bonuses

iv-Share options

a)

i & ii

b)

i, ii, & iii

c)

ii, iii & iv

d)

i, iii & iv

5.

Agency theory:-

a)

is a contract under which one or more persons (the principals) engage another person (the agent) to perform some service on their behalf that involves delegating some decision-making authority to the agent.

b)

is a type of internal company expense which comes from the actions of an agent acting on behalf of a principal.

c)

is used to study the problems of motivation and control when a principal needs the help of an agent to carry out activities.

d)

If you DON'T KNOW!, Means that someone did not STUDY!!

6.

The 6 Capitals of Integrated Reporting are:

a)

Financial, Manufactured, Human, Infrastructure, Natural & Social

b)

Financial, Manufactured, Human, Intellectual, Natural & Social

c)

Financial, Man Power, Human Resource, Intellectual, Natural & Social

d)

Financial, Manufactured, Human, Intellectual, Environment & Social

7.

Triple bottom line accounting in AA1000 (2008) clearly describes the goal of CSR by encouraging an organisation's activities to be accounted for in less obvious ways than just financial reporting terms:


Which of these are the correct elements?


Profit - a measure of the success of the business, but considering the redistribution of wealth which brings benefits to the local community (for example, education schemes and community projects)

Process- a system of work processes which does not harm the environment

People - the equivalent of social accounting (for example, the amount of charitable donations made)

Planet - a focus on environment performance such as waste management and recycling targets

a)

Profit, Process & Planet

b)

Process, People & Planet

c)

Profit, People & Planet

d)

Profit, Process & People

8.

What are the TWO approaches of Sustainability?

a)

Weak Sustainability

b)

Moderate Sustainability

c)

Strong Sustainability

d)

Extreme Sustainability

9.

Which of these are the roles of a Middle manager?


i-Advisers to senior management, as they are often closest to day-to-day operations.

ii-Reinterpretation and adjustment of strategy as circumstances change internally and externally.

iii- Embodying change is being a symbol and role model for the organisation.

iv-'Sense making' of strategy, means translating the strategy into specific contexts.

a)

i, iii & iv

b)

Ii, iii & iv

c)

i, ii & iv

d)

i ,ii, & iii

10.

A strategy to expand a business into another location or market is known as…..

a)

Competitive Strategy

b)

Operational Strategy

c)

Corporate Strategy

d)

Marketing Strategy

11.

Strategy on how to compete successfully in particular markets (continuing with the expansion analogy, the head of a business unit must decide where to be based, what products to sell and the markets to target etc) is a sample of…..

a)

Corporate Strategy

b)

Bogus Strategy

c)

Business Strategy

d)

Operational Strategy

12.

A strategy to expand a business into another location or market is known as…..

a)

Marketing Strategy

b)

Competitive Strategy

c)

Operational Strategy

d)

Corporate Strategy

13.

Which of these are the roles of a Middle manager?


i-Advisers to senior management, as they are often closest to day-to-day operations.

ii-Reinterpretation and adjustment of strategy as circumstances change internally and externally.

iii- Embodying change is being a symbol and role model for the organisation.

iv-'Sense making' of strategy, means translating the strategy into specific contexts.

a)

i, ii & iv

b)

i, iii & iv

c)

i,ii & iii

d)

ii, iii & iv

14.

What are the TWO approaches to Sustainability?

a)

Weak Sustainability

b)

Moderate Sustainability

c)

Strong Sustainability

d)

Extreme Sustainability

15.

Triple bottom line accounting in AA1000 (2008) clearly describes the goal of CSR by encouraging an organisation's activities to be accounted for in less obvious ways than just financial reporting terms:

Which of these are the correct elements?

Profit - a measure of the success of the business, but considering the redistribution of wealth which brings benefits to the local community (for example, education schemes and community projects)

Process- a system of work processes which does not harm the environment

People - the equivalent of social accounting (for example, the amount of charitable donations made)

Planet - a focus on environment performance such as waste management and recycling targets

a)

Profit, Process & Planet

b)

Profit, Process & People

c)

Profit, People & Planet

d)

Process, People & Planet

16.

The 6 Capitals of Integrated Reporting are:

a)

Financial, Manufactured, Human, Infrastructure, Natural & Social

b)

Financial, Manufactured, Human, Intellectual, Natural & Social

c)

Financial, Man Power, Human Resource, Intellectual, Natural & Social

d)

Financial, Manufactured, Human, Intellectual, Environment & Social

17.

OECD stands for:

a)

Organisation for Economic Co-operation and Development

b)

Organisation for Economic Corporate Governance Development

c)

Organisation for Economic Committee and Development

d)

Organisation on Economic Community Development

18.

The OECD principles are grouped into five broad areas. Which of these are correct?

A) The rights of shareholders

B) Disclosure and timeliness of reports

C) The equitable treatment of shareholders

D) The role of stakeholders

E) The responsibilities of the stakeholders

a)

A, B & D

b)

A, D & E

c)

A, C & D

d)

A, C & E

19.

Which are the features of a Rules Based Approach to CG?


A) Works on a comply or explain basis, with any departure from the specific provisions of codes requiring an explanation.

B) Non-compliance cannot be justified. A company has either succeeded or failed in complying.

C) Allows investors to decide if they agree that departure from the code is appropriate.

D) Investors tend to rely on a third party (eg SEC) to penalise the company for noncompliance.

a)

A & B

b)

B & C

c)

A & D

d)

B & D

20.

Benefits for Principle Based Approach in CG includes the following EXCEPT for:

a)

Provides a consistent minimum standard of governance for investors' confidence.

b)

Allows for greater flexibility and potential cost savings.

c)

Applies across different legal jurisdictions, which makes the governance of a multi-national business more effective

d)

Forces both boards and shareholders to think about the consequence of governance arrangements.

21.

Benefits of a Rules Based approach are as follows, EXCEPT:

a)

Applies across different legal jurisdictions, which makes the governance of a multi-national business more effective.

b)

Provides a consistent minimum standard of governance for investors' confidence.

c)

Easier compliance with the rules, as they are unambiguous, and can be evidenced.

d)

Forces both boards and shareholders to think about the consequence of governance arrangements.

22.

Singapore DOES NOT allow for a Chairman to also hold the CEO position

a)

True

b)

False

23.

According to UK Code of Governance, NEDs' remuneration could also include ESOS package:

a)

True

b)

False

24.

Some of the areas that ongoing CPD could cover to ensure that directors continue to be adequately prepared for their roles are as follows EXCEPT:

a)

Corporate Strategy

b)

Financial management

c)

Legal and regulatory issues

d)

Audit practice and procedures

25.

Which of these are the responsibilities of a CEO?

a)

Ensuring the board receives accurate and timely information

b)

Communicating effectively with significant stakeholders

c)

Co-operate in induction and development

d)

Facilitate effective contribution from NEDS, ensure constructive relations between execs and NEDs

26.

The sub-committees responsible for supervising specific aspects of governance are as follows EXCEPT:

a)

Internal Audit

b)

Risk

c)

Nomination

d)

Remuneration

27.

Which of these belongs to the role of NEDs with regards to scrutiny?

a)

Contributing to, and challenging the direction of, strategy.

b)

NEDs should satisfy themselves that financial information is accurate and that

financial controls and systems of risk management are robust.

c)

NEDs are responsible for determining appropriate levels of remuneration for executives, and are key figures in the appointment and removal of senior managers and in succession planning.

d)

NEDs should scrutinise the performance of management in meeting goals and objectives, monitor the reporting of performance. They should represent the shareholders' interests to ensure agency issues don't arise to reduce shareholder value.

28.

Value for money (3 Es) concept refers to the following EXCEPT:

a)

Economy - obtaining inputs of the appropriate quality at the lowest price available

b)

Effectiveness - achieving the desired objectives as stated in the entity's performance plan

c)

Ethics - achieving success without compromising the welfare of stakeholders

d)

Efficiency - delivering the service to the appropriate standard at minimum cost, time and effort

29.

Which of these are the Strategic Objectives for a Public Sector Organization?

a)

Profit and/or market share

b)

Achievement of State-defined service delivery to meet social need

c)

Securing value for money with taxpayers' funds

30.

Reporting to an oversight body (such as a board of governors)


External audit and political (as well as media) scrutiny


Demonstration of good use of public funds in meeting social need (controlled by budgets and KPIs)


Are matters related to Governance relating to:

a)

Private sector

b)

Public sector