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corporate governance 1-quiz

Total questions: 10

Worksheet time: 8mins

Name
Class
Date
1.

Which is NOT TRUE about the needs for corporate governance?

a)

To avoid mismanagement

b)

To enable companies operate more efficiently, to improve access to capital, mitigate risk and safeguard stakeholders

c)

To increase the accountability of your company and to avoid massive disasters before they occur

d)

To analyze of an organization's operations and maintenance of systems of internal controls can help detect and prevent various forms of fraud and other accounting irregularities.

2.

Which is BEST definition for Corporate Governance?

a)

A system of law and sound approaches by which corporations are directed and controlled focusing on the internal and external corporate structures with the intention of monitoring the actions of management and directors and thereby mitigating agency risks which may stem from the misdeeds of corporate officers

b)

A part of regulatory and market mechanisms, the roles and relationships between a company’s management, its board directors, its shareholders and other stakeholders, and the goals for which the corporation is governed

c)

Essentially involves balancing the interests of a company's many stakeholders, such as shareholders, senior management executives, customers, suppliers, financiers, the government, and the community.

d)

Refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders' desires

3.

What is the main functions of Audit Committee?( you can mark more than one option)

a)

Reviews issues of accounting policy and presentation of external financial reporting

b)

Monitors the work of the internal function

c)

Ensures that an objective and professional relationship is maintained with the external and internal audit

d)

Ensures organization in managed in a manner that fits the best interests of all.

4.

Which is NOT the roles of audit committee?

a)

Review the work of internal audit

b)

Review the system of internal control.

c)

Appropriate resources are committed to companies.

d)

May launch special investigations

5.

Key players in good corporate governance are

a)

Directors and management of corporation

b)

Audit committee members

c)

Internal and External auditors

d)

Shareholders

e)

All of the above

6.

Which of the following is not one the underlying principles of the corporate governance Combined Code of Practice?

a)

integrity

b)

acceptability

c)

accountability

d)

openness

7.

Directors’ responsibilities are unlikely to include

a)

a duty of care

b)

a duty to keep proper accounting records

c)

a fiduciary duty

d)

a duty to propose high dividends for shareholders

8.

Who runs the company operations for large companies?

a)

Shareholders

b)

Board of Directors

c)

External auditors

d)

Stakeholders

9.

Elements of an Effective Corporate Governance System are

a)

Accountability

b)

Transparency

c)

Regulatory framework

d)

Business ethics and social responsibility

10.

. Which of the following correctly describes the composition of a unitary board?

a)

A Executive directors only

b)

B Non executive directors only

c)

C Both executive and non executive directors

d)

D Non executive directors and internal auditors