Font size
WorksheetsCorporate Governance Quiz Unit I&II
Total questions: 87
Worksheet time: 44mins
Stakeholders include...
employees
customers
lobby groups
government
Which of the following in/are (an) argument(s) in favour of CSR?
Businesses that assist the community in which they operate through CSR programmes receive greater support from the community.
Business must act on social issues in their communities or else customers will move away from the area. E.G. Increased poverty may lead to increased crime which will drive people away.
CSR detracts from the business's core activities.
Businesses that operate in sustainable ways are usually also innovate enough to identify additional avenues of income.
Which of the following is considered to be the first step in the recipe for designing a successful CSR programme?
Management should create a CSR policy for the business.
Employees throughout the business should brainstorm to come up with initiatives for CSR.
An inventory of skills and resources needed to implement the programme should be drawn up.
Management must communicate the need for CSR across the business.
True of False.
The principle of TRANSPARENCY requires that all relevant information about CSR initiatives has to be communicated to stakeholders - even if it is negative.
True
False
The three areas of social responsibility of a business are:
Political, Economic, Environmental
Environmental, Social, Technological
Economic, Social, Environmental
Economic, Environmental, Ethical
Sustainable business practice means:
Assessing how present business practice affects the future
Involving employees in decision making
Considering the benefits of stakeholder over shareholder practices
Developing BBBEE policies
Which of the following is considered to be the first step in the recipe for designing a successful CSR programme?
Management should create a CSR policy for the business.
Employees throughout the business should brainstorm to come up with initiatives for CSR.
An inventory of skills and resources needed to implement the programme should be drawn up.
Management must communicate the need for CSR across the business.
True of False.
The principle of TRANSPARENCY requires that all relevant information about CSR initiatives has to be communicated to stakeholders - even if it is negative.
True
False
The three areas of social responsibility of a business are:
Political, Economic, Environmental
Environmental, Social, Technological
Economic, Social, Environmental
Economic, Environmental, Ethical
Sustainable business practice means:
Assessing how present business practice affects the future
Involving employees in decision making
Considering the benefits of stakeholder over shareholder practices
Developing BBBEE policies
Corporate Social Responsibility is
managing a business in such a way that the broader community including owners, and the environment are taken into account when making business decisions.
managing a business in such a way that the broader community including the employees, competitors, customers and suppliers are taken into account when making business decisions
managing a business in such a way that the broader community including the owners and employees are taken into consideration when making business decisions
managing a business in such a way that the broader community, including employees, customers, suppliers and the environment, is taken into consideration when making business decisions
TBL stands for
triple back line
triple base line
triple bottom line
triple bottom length
CSR stands for
corporate socialite responsibility
corporate social responsible
co-operative social responsibility
corporate social responsibility
Which is not a way a business can be socially responsible?
drawing on the skills of employees
avoiding conflicts of interest
becoming involved in the community
paying employees correctly
Dealing with suppliers who operate workplaces that are free from exploitation is a socially responsible approach
False
True
Packaging and marketing a product in a way that ensures the quality of the product is maintained is not a socially responsible approach to CSR.
False
True
CSR cares for
the environment
the employees
stakeholders
animals
Which of the following is NOT a benefit of a business being socially responsible?
Increased sales
Higher staff morale
Higher staff turnover
Better relationships with stakeholders
Milton Friedman claims that the ethical mandate of business is to increase the _____________ profit.
Consumers
Shareholders
Employees
None of the Above
Business should primarily be responsible to ____________
Employees
Owners
Society
Government
Which is NOT TRUE about the needs for corporate governance?
To avoid mismanagement
To enable companies operate more efficiently, to improve access to capital, mitigate risk and safeguard stakeholders
To increase the accountability of your company and to avoid massive disasters before they occur
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.
Who runs the company operations for large companies?
Shareholders
Board of Directors
External auditors
Stakeholders
What is it means by good board practices?
Board of Directors clearly defined roles and authorities.
Planning appropriate Board procedures
Risk management framework present
Director remuneration in line with best practice
Elements of an Effective Corporate Governance System are
Accountability
Transparency
Regulatory framework
Business ethics and social responsibility
What is the main functions of Audit Committee?( you can mark more than one option)
Reviews issues of accounting policy and presentation of external financial reporting
Monitors the work of the internal function
Ensures that an objective and professional relationship is maintained with the external and internal audit
Ensures organization in managed in a manner that fits the best interests of all.
Which is NOT the roles of audit committee?
Review the work of internal audit
Review the system of internal control.
Appropriate resources are committed to companies.
May launch special investigations
The Purpose of a Public Company is to:
Maximize profits
Satisfy all stakeholders equally
Perpetuate the corporation
None of the above
Key players in good corporate governance are
Directors and management of corporation
Audit committee members
Internal and External auditors
Shareholders
All of the above
Initiative for better corporate governance in India came from which industry association?
INDIAN BANKS ASSOCIATION
CONFEDERATION OF INDIAN INDUSTRY
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
SECURITIES AND EXCHANGE BOARD OF INDIA
Managing and governing is the same
True
False
Which of the following statements about board of directors is true?
Executive directors have more power than non executive directors
Non - Executive directors have more power than executive directors
Both non - executive directors and executive directors have same power
None of the above is true
Corporate governance is same as corporate social responsibility
True
False
What are the principles of Corporate Governance?
Integrity & Fairness
Transparency & disclosures
Accountability & Responsibility
All of the above
................ theory assumes that management works in the best interest of the company
Stewardship theory
Agency theory
Indian theory
American theory
Management is responsible towards which of the following?
All shareholders
Employees
Government
Society
All stakeholders
------ may be defined as the enhancement of long-term shareholders while at the same time protecting the interests of other stakeholders.
Corporate Social Responsibility
Business ethics
Corporate governance
Cultural relativism
Which of the following is/are feature of corporate governance?
Non- universality
Ambiguity
Accountability
All of these
The primary stakeholders are
Consumers
Creditors
Shareholders
Suppliers
What is the full form of ESG?
Environment, Social & Governance
Economic, Social & Governance
Environmental, Social & Global
Energy, Safety & Governance
Stakeholders include......
Employees
Customers
Lobby group and government
All of the above
Which of the following argument is not in favor of CSR?
Businesses that assist the community in which they operate through CSR programmes receive greater support from the community.
Business must act on social issues in their communities or else customers will move away from the area. E.G. Increased poverty may lead to increased crime which will drive people away.
CSR detracts from the business's core activities.
Businesses that operate in sustainable ways are usually also innovate enough to identify additional avenues of income.
Sustainable business practice means:
Assessing how present business practice affects the future
Involving employees in decision making
Considering the benefits of stakeholder over shareholder practices
None of the above
Dealing with suppliers who operate workplaces that are free from exploitation is a socially responsible approach
False
True
Elements of an Effective Corporate Governance System are
Accountability
Transparency
Regulatory framework
Business ethics and social responsibility
Corporate governance is most often viewed as both the structure and the relationships which determine corporate direction and performance.
True
False
Accountability, Transparency, governance and Objectives are the four pillars of Corporate Governance.
True
False
A board of directors (BoD) is an elected group of individuals that represent shareholders.
True
False
Which are elements for the needs of good governance?
Good board practices
Control environment
Well-defined shareholders
Transparent disclosure
Board commitment
"Successful business leaders not only realize the importance of giving back to society, but they also consider the social and environmental responsibilities of their business with the ultimate goal of sustainable global development."
This statements refers to
Needs of corporate governance
Advantages of having audit committee
Audit committee structure
Elements of corporate governance
Corporate Governance starts with shareholders or owners delegating responsibilities directly to operating unit.
true
false
2.Who should have overall responsibility for Corporate Governance?
1. Risk Management
2. The Board
3. Internal Audit
4. The Strategy Department
5. The Compliance function
1. What is the best definition of Corporate Governance?
1. The internal structure designed to allow the organisation to comply with laws and regulations
2. A commitment to economic development by working with stakeholders to improve their lives
3. A set of tools to help management run the day to day activities of the business
4. The same as Corporate social responsibility
5. A system by which the organisation is directed and controlled on behalf of its stakeholders
10. Which of the following is NOT a Governance role of the Audit Committee?
1. Overseeing the relationship between Internal and External Audit
2. Giving instructions to the Head of Internal Audit
3. Overseeing the financial reporting process
4. Ensuring key regulatory and legal requirements are met
5. Representing the major stakeholders
What is the main functions of Audit Committee?
Reviews issues of accounting policy and presentation of external financial reporting
Monitors the work of the internal function
Ensures that an objective and professional relationship is maintained with the external and internal audit
Ensures organization in managed in a manner that fits the best interests of all.
What is the advantages of having an audit committee in a company?
Good audit committee ensures corporate success and economic growth.
Strengthening the independence of the internal audit function.
Ensures organization in managed in a manner that fits the best interests of all.
Better monitoring of compliance with standards, laws and regulations.
Key players in good corporate governance are
Directors and management of corporation
Audit committee members
Internal and External auditors
Shareholders
All of the above
Directors’ responsibilities are unlikely to include
a duty of care
a duty to keep proper accounting records
a fiduciary duty
a duty to propose high dividends for shareholders
It refers to the a process of decision-making and the process by which decisions are implemented or not implemented through the exercise of power.
(a)
It refers to the system of rules, practices and process by which business corporations are directed and controlled.
(a)
It is one of the key requirement of good governance and this cannot be enforced without transparency and the rule of law.
(a)
It is a key cornerstone of good governance and this could be either direct or indirect or through legitimate institutions or representatives.
(a)
Because of this characteristic of good governance institutions produce results that meet the needs of society.
(a)
This means that information is freely available and directly accessible to those who will be affected by such decisions and their enforcement.
(a)
This is a requirement for good governance that institutions and processes try to serve the needs of all stakeholders within a reasonable timeframe.
(a)
A theory in the evolution of corporate governance that was considered as value based.
(a)
A theory in the evolution of corporate governance that the company is seen as an input-output model.
(a)
According to this theory in the evolution of corporate governance, managers act as an agent of the corporation.
(a)
An independent director is one who:
Did not attend a school supported by the company.
Does not have outside relationships with other directors.
Does not have any other relationships with the company other than his or her directorship.
All of the above.
An organisation's obligation to act to protect and improve society's welfare as well as its own interests is referred to as
organisational social responsibility
organisational social responsiveness
corporate obligation
business ethics
The trading of a public company’s stock or other securities like bonds or stock options by individual with possession of material, non-public information about the security is called-
Insider trading
online trading
offline trading
direct trading
Which is NOT the role of audit committee?
Review the work of internal audit
Review the system of internal control.
Perform periodic financial statement audit.
May launch special investigations
Corporate governance is a process by which the owners, but not the creditors, exert control over the resources of the enterprise.
True
False
Problems arise when the _________________ do not necessarily make decisions and allocate resources in the best interests of the shareholders.
principal
agents
In a public corporation, _______________ are principal.
shareholders
board of directors
senior managers
investors
Agency problem arises because _______________ are in a unique position to pursue self-interest in a public corporation where the ownership is separated from control.
controllers
senior managers
agent
principals
shareholders
"To understand how human beings can be motivated to contribute to the achievement of the goals of organizational principals" is the purpose of
Stakeholder Theory
Stewardship Theory
Managerial Hegemony Theory
Political Theory
Stewardship Theory holds that company owners hires agents to serve their interest
True
False
The management dominates the business organizations resulted ineffective BOD. Factors:
Directors had a low dependence on the management.
No influence of inside directors on outside directors.
The board's lack of detachment is a result management's control over the selection of outside board members.
Director could possess the same amount of information and knowledge about the business with the management.
Corporate governance is most often viewed as both the structure and the relationships which determine corporate direction and performance.
True
False
Which is NOT the roles of audit committee?
Review the work of internal audit
Review the system of internal control.
Appropriate resources are committed to companies.
May launch special investigations
Risk Management Department is a committee reportable to BoD.
True
False
A board of directors (BoD) is an elected group of individuals that represent shareholders.
True
False
which of following factors can help to built good governance
small size of board
board long term strategy
diversity of board
longer vision of board
To whom does the shareholders delegate responsibilities in running the business as a whole?
Management
Employees
Board of Directors
Accountants
The chairperson of the board of directors and CEO should be leaders with:
Vision and problem solving skills.
The ability to motivate.
Business acumen.
All of the above.
A team of individuals — usually seven to twelve executives and nonexecutives — that meets several times a year in order to advise and monitor the Top Management Team and, in particular, the CEO.
Stakeholder
Principal
Board of Directors (Board, or BoD)
Agent
