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WorksheetsCorporate Governance
Total questions: 149
Worksheet time: 1hrs 15mins
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
Which is BEST definition for Corporate Governance?
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
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
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.
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
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
The purpose of a privately-owned company is to:
Maximize shareholder value
Maximize executive income
Whatever the owners want it to be
do you understand what is corporate governance
Key players in good corporate governance are
Directors and management of corporation
Audit committee members
Internal and External auditors
Shareholders
All of the above
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
Which is BEST definition for Corporate Governance?
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
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
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.
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
Which are elements for the needs of good governance?
Good board practices
Control environment
Well-defined shareholders
Transparent disclosure
Board commitment
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
a) Financial information disclosed
b) Non-financial information disclosed
c) Financial prepared according to International Financial Reporting Standards (IFRS)
The point above suitable for need of good governance of
Control environment
Board commitment
Well-defined shareholders
Transparent disclosure
Elements of an Effective Corporate Governance System are
Accountability
Transparency
Regulatory framework
Business ethics and social responsibility
Which is BEST explanation for administrative structures?
By initiating recycling efforts and reducing waste and pollution. Good corporate governance identifies ways to improve company practices and also promotes social good by reinvesting in the local community.
To ensure this accountability, directors must be accessible to shareowner inquiry concerning their key decisions affecting the company’s strategic direction.
Any information about a company, both financial and non financial should be easily made available and understood by the public.
The structure of a corporation’s governance determines the efficiency and accuracy of the flow information through and from a corporation.
"A good corporate citizen is increasingly seen as one that is non-discriminatory, non-exploitative and responsible with regard to environmental and human rights issues."
Above statement refers to the element of corporate governance
Accountability
Transparency
Regulatory framework
Business ethics and social responsibility
Which of the answer below explain the elements of corporate governance for Administrative Structure?
Corporate governance encompasses rules as well as the framework of relationships and process designed to ensure that company managers and directors act in the interests of the company and, ultimately, shareholders.
When employees understand management’s strategies and are allowed to monitor the company’s financial performance, they understand their roles within the company.
Dishonesty between management and board of members, or board members and shareholders, weakens the health of a corporation’s governance.
A company is likely to experience indirect economic benefits such as improved productivity and corporate reputation by taking those factors into consideration.
Choose the right answer for the benefits of a company that apply corporate governance in their companies
Give positive impact on the share price.
Ensures organization in managed in a manner that fits the best interests of all
Good corporate governance ensures corporate success and economic growth
Significant problems arise when the flow of information within the governance structure falters or if employees are not held
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.
Audit Committee must be appointed to prevent any irregularities and fraud lies with management. Who should be the members for the audit committee?
A lawyer
An auditor
An accountant
Shareholder (preferred share)
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
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.
Who is A and B?
A - Director
B - Independent directors
A - Chairman
B - Auditor
A - Non executive director
B - Lawyer
A- Chairman
B - Independent director
Which is the BEST explanation for well defined shareholders?
Board self-evaluation and training conducted
Minority shareholders rights formalized.
Well-organized shareholder meetings conducted
Policy on related party transactions.
a)Disaster recovery systems in place
b)Independent external auditor conducts audits
c)Independent audit committee established
Above points refers to
Control environment
Good board practices
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
Key players in good corporate governance are
Directors and management of corporation
Audit committee members
Internal and External auditors
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)
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
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
3. What is ESG?
1. Energy safety guidelines
2. Equipment safety guidance
3. Environmental, Social & Governance
4. Effective standards of Government
4. What is a KRI?
1. Key review instruction
2. Key ring installation
3. Key residual impact
4. Key risk indicator
5. What is CSR?
1. Corporate social responsibility
2. Customer satisfaction research
3. Customer service responsibility
4. Corporate skills research
6. Is reputation damage?
1. A risk
2. A cause
3. The effect of a risk event
4. None of the above
7. Which of the following is the best definition of risk exposure?
1. The risk you have today
2. The risk you have today
3. Events where the risk is not currently acceptable
4. The risks on the horizon
8. What is IT Governance?
1. How IT deals with requests
2. The need to ensure that major changes to IT priorities are determined by the business and supported by the IT function
3. The IT department
4. Reporting of IT failures
9. Which of the following is NOT a good definition of reputation?
1. Corporate Brand
2. Image
3. Something you cannot insure
4. Financial performance
5. External perception of the organisation
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
11. What is a target risk?
1. The risk you are forced to take by the regulators
2. The risk you are happy to keep (the goal)
3. The risk remaining after applying controls
4. The same as residual risk
12. What is BCP?
1. Business case priority
2. Budget cap process
3. Better control plans
4. Business Continuity planning
Behaviour control personnel
What is corporate governance?
A set of rules and procedures aimed at expanding the company’s markets
A series of rules and procedures for monitoring competitors’ governance processes
A series of structures and processes for the direction and control of a company
A series of rules and procedures for production management
Principal-Agent Dilemma is the basis for corporate governance, and results from the separation of control between:
Management and the stakeholders of a firm
Shareholders and stakeholders of a firm
Government and private sector firms
Management and the shareholders of a firm
The purpose of the Board of Directors is to:
Manage the day-to-day activities of the company
Execute the managing director’s instructions
Set the strategy and effectively monitor management
Represent the company in front of the media
The requirements of a board of directors vary significantly by country and by state; however, there is a developing consensus as to what the major responsibilities should be. Which of the following is NOT one of the responsibilities?
Reviewing and approving the use of resources
Setting corporate strategy, overall direction, mission or vision
Controlling, monitoring, or supervising top management
Becoming directly involved in managerial decisions
A careless director or directors can be held personally liable for harm done to the corporation if they failed to act with
figurehead role
accountability
initiation and determination
due care
According to ________ theory, ________ directors tend to identify with the corporation.
agency; inside
corporate governance; inside
stewardship; inside
stewardship; outside
The theory which states that problems arise in corporations because top management no longer is willing to bear the brunt of their decisions unless they own a substantial amount of stock in the corporation is called
agency theory
strategic leadership theory
ownership theory
sustainable theory
Research reveals that the likelihood of a firm engaging in illegal behavior or being sued declines
with a larger board
with the addition of insiders on the board
with the addition of outsiders on the board
with a well-compensated board
________ theory argues that senior executives over time tend to view the corporation as an extension of themselves.
Motivation
Stewardship
Agency
Goal setting
An agency problem can occur when
the desires and objectives of the owners and agents conflict.
when the owners and agents have different attitudes toward risk.
executives do not select risky strategies because they fear losing their jobs if the strategy fails.
All are correct
Which of the following provides an example of the characteristics of a transformation leader?
Louis Gerstner proposed a new vision for IBM to change its business model from computer
hardware to services.
Microsoft CEO, Steve Ballmer, crawled under tables to plug in PC monitors and diagnosed
problems with an operating system.
Verizon Communications CEO Ivan Seidenberg showed his faith in his people by letting his
key managers handle important projects and represent the company in public forums.
All are correct
What is the name of the process in which an employee informs another responsible employee in the company about potentially unethical behavior?
Whistle-blowing
Information transfer
Identification
Social responsibility
A _____ is a problem, situation, or opportunity requiring an individual, group, or
organization to choose among several actions that must be evaluated as right or wrong.
Crisis
ethical issue
fraud
violance
Most companies begin the process of establishing organizational ethics programs by developing:
ethics training programs.
codes of conduct
ethics enforcement mechanisms.
hidden agendas
Which one of the following is not the reasons for unethical behavior?
Lack of standards of conduct
Different cultural norms and values
Unaware that behavior is questionable
Similar values between business people and stakeholders
_____ refers to formal codes that permit or forbid certain behaviors and may or may not enforce ethics or morality.
Ethics
Morality
Legal
standardized behavior
Which one of the followings are not the benefits of being socially responsible
Their environmental concerns may enable them to charge premium prices and gain brand loyalty
Their trustworthiness may help them generate enduring relationships with suppliers and distributors
They can attract outstanding employees who prefer working for a responsible firm
They are more unlikely to be welcomed into a foreign country
_____ should be broadened to include economic and social as well as environmental concerns.
Strategic planning staff
Sustainability
Corporate Stakeholders
Codes of conduct
_____ proposes actions and plans should be judged by their consequences
Utilitarian approach
Individual rights approach
Justice approach
Reciprocal approach
U.S. business firms are required to hire and promote people based on their credentials rather than to discriminate on non-job-related characteristics such as race, gender, or religion
Economic responsibilities
Ethical responsibilities
Legal responsibilities
Discretionary responsibilities
To whom does the shareholders delegate responsibilities in running the business as a whole?
Management
Employees
Board of Directors
Accountants
They are the ones that ensure financial statements are free from material misstatements
External Auditors
Independent Directors
Board of Directors
BIR
They are the people responsible in conducting the CPALE in the Philippines
Philippine Institute of Certified Public Accountants
National College of Business and Arts
Securities and Exchange Commission
Board of Accountancy
They provide oversight of the internal and external audit function and the process of preparing the annual financial statements
Audit Committee of the Board of Directors
Management
Accountants
Board of Accountancy
In order to have good governance in an organization, this major characteristic must be present
Connections
Wealth
Accountability
Good Looks
There is no simple U (a) formula for good governance.
(yes, the 9-letter word starts with 'U')
To whom do shareholders delegate responsibilities? (Check as many as correct possible answers)
Board of Directors
Management
Consumers
Internal Auditors
This is one of the many responsibilities the shareholders entrusted to management
Answer all Complaints
Financial Transparency
Win every Lawsuit
Take sides during shareholders' meeting
What is the title of the Chapter to be discussed?
Introduction to Corporate Governance
Corporate Governance Responsibilities and Accountabilities
Securities and Exchange Commission Code of Corporate Governance
Business Ethics
What do you (really) want to be? Do you want to pursue that dream of yours after college?
“Argued that stakeholder ideas are fundamentally flawed, strongly advocating the ownership rights perspective.” The statements above are mentioned by
Turnbull (1997)
Smith and Hasnas (1999)
Peter Senge (2000)
Sternberg (2000)
The theory recognizes that companies generate profits and increase shareholder wealth only by satisfying stakeholder needs and responding to their interests.
True
False
"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.
Class hegemony explains that directors view and perceive themselves as an elite set of people at the top of the company and they will recruit or appoint other directors who are of the same caliber and can align with them.
True
False
Who are the persons behind the resource dependency theory?
Freeman and Reed
Mallette and Fowler
Jeffrey Pfeffer and Gerald R. Salancik
Meyer and Rowan
How the company could minimize dependency?
Fund Raising
Involve in open market
Collaborate with competitor
Strategic Planning
According to (DiMaggio and Powell, 1983), complementary perspective in that it suggests that the imitation of practices.
True
False
Institutional Theory should be viewed as a complement to
Political Theory
Resource Dependence Theory
Agency Theory
Stakeholder Theory
Political theory proposes to develop voting support from shareholders, rather than purchasing voting power from them
True
False
Political Theory highlights the allocation of
Corporate power
Profits
Privileges
All the above
Mengatur bagaimana korporasi diarahkan dan dikendalikan untuk meningkatkan kemakmuran bisnis secara accountable untuk mewujudkan nilai pemegang saham dalam jangka
panjang dengan tidak mengabaikan kepentingan stakeholder lainnya merupakan bagian dari?
Sistem
Fungsi
Alur
Struktur
Memberikan kejelasan fungsi, hak, kewajiban dan tanggungjawab antara
pihak-pihak yang berkepentingan atas korporasi, mencakup proses kontrol internal dan
eksternal yang efektif serta menciptakan keseimbangan internal dan keseimbangan eksternal merupakan bagian dari?
Sistem
Fungsi
Alur
Struktur
Tata Kelola Perusahaan atau Corporate Governance merupakan suatu system yang dirancang
untuk mengarahkan pengelolaan perusahaan secara profesional berlandaskan prinsip-prinsip :
Transparansi, akuntabilitas, responsibilitas, independensi, fairness
Transparansi, akurasi, responsibilitas, independensi, fairness
Transparansi, akuntabilitas, risiko, independensi, fairness
Transparansi, akuntabilitas, responsibilitas, integrasi, fairness
Penerapan good corporate governance (GCG) dapat didorong dari dua sisi, yaitu?
Sistem dan Struktur
Fungsi dan Struktur
Etika dan Peraturan
Peraturan dan Sistem
Penerapan GCG perlu didukung oleh tiga pilar yang saling berhubungan, yaitu?
Sistem, Fungsi dan Struktur
Peraturan, Kewajiban dan Tanggung Jawab
Negara, Dunia Usaha, dan Mayarakat
Transparansi, Akuntabilitas dan Responsibilitas
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
The primary stakeholders are:
Customers.
Suppliers.
Shareholders.
Creditors.
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.
The social economy partnership philosophy emphasizes:
cooperation and assistance.
profit maximization.
competition.
restricting resources and support.
King Report first published in 1994
True
False
Who was the chairman of King committee
Richard Greenburry
Mervyn E King
Hampel
J J Irani
To be successful, business ethics training programs need to:
promote the use of emotions in making tough ethical decisions.
educate employees on formal ethical frameworks and models of ethical decision making.
focus on personal opinions of employees.
be limited to upper executives.
One of the objectives of the Sarbanes-Oxley Act was to:
Increase the compliance burden for small companies.
Improve the quality and transparency of financial reporting.
Increase the cost of compliance with federal regulations.
Force foreign companies to delist from U.S. capital market exchanges.
Codes of conduct and codes of ethics
rarely become an effective component of the ethics and compliance program.
are designed for top executives and managers, not regular employees.
become necessary only after a company has been in legal trouble.
are formal statements that describe what an organization expects of its employees.
Consider the following recommendations:
- a minimum of three members;
- chaired by an independent director;
- a majority of independent directors;
- can comprise executive directors.
In terms of the ASX Principles, the above requirements relate to the composition of which committees?
The nomination and risk committees.
The audit and remuneration committees.
The remuneration, audit, risk and nomination committees.
The remuneration, risk and nomination committees but not the audit committee.
_____________ is a problem, situation, or opportunity requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong.
Crisis
ethical issue
indictment
fraud
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
What is Ethics to do with
The wider community
Business
Right or wrong
None of these
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
An organization’s ______________ embraces the behavior, rituals and shared meaning held by employees that distinguishes the organization from all others.
External environment
Culture
Dominant culture
Ethics
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
Which is BEST definition for Corporate Governance?
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
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
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.
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
Which are elements for the needs of good governance?
Good board practices
Control environment
Well-defined shareholders
Transparent disclosure
Board commitment
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
a) Financial information disclosed
b) Non-financial information disclosed
c) Financial prepared according to International Financial Reporting Standards (IFRS)
The point above suitable for need of good governance of
Control environment
Board commitment
Well-defined shareholders
Transparent disclosure
Elements of an Effective Corporate Governance System are
Accountability
Transparency
Regulatory framework
Business ethics and social responsibility
Choose the right answer for the benefits of a company that apply corporate governance in their companies
Give positive impact on the share price.
Ensures organization in managed in a manner that fits the best interests of all
Good corporate governance ensures corporate success and economic growth
Significant problems arise when the flow of information within the governance structure falters or if employees are not held
Audit Committee must be appointed to prevent any irregularities and fraud lies with management. Who should be the members for the audit committee?
A lawyer
An auditor
An accountant
Shareholder (preferred share)
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.
Who is A and B?
A - Director
B - Independent directors
A - Chairman
B - Auditor
A - Non executive director
B - Lawyer
A- Chairman
B - Independent director
Which is the BEST explanation for well defined shareholders?
Board self-evaluation and training conducted
Minority shareholders rights formalized.
Well-organized shareholder meetings conducted
Policy on related party transactions.
"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
Key players in good corporate governance are
Directors and management of corporation
Audit committee members
Internal and External auditors
Shareholders
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
The purpose of a privately-owned company is to:
Maximize shareholder value
Maximize executive income
Whatever the owners want it to be
do you understand what is corporate governance
Key players in good corporate governance are
Directors and management of corporation
Audit committee members
Internal and External auditors
Shareholders
All of the above
Management is responsible towards which of the following?
All shareholders
Employees
Government
Society
All stakeholders
What are the principles of Corporate Governance?
Integrity & Fairness
Transparency & disclosures
Accountability & Responsibility
All of the above
Corporate governance is same as corporate social responsibility
True
False
Who runs the company operations for large companies?
Shareholders
External auditors
Board of Directors
Stakeholders
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
Managing and governing is the same
True
False
All employees in public sector organization are involved in corporate misgovernance
True
False
Which of the following is not a reason for poor corporate governance?
Greed of managers/ corporates/ investors
Lack of questioning culture in boardroom
Accountability
Laid-back attitude of investors
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
Which of the following is incorrect in relation to the SarbanesOxle Act(‘the Act’)?
A The Act created the Public Company Accounting Oversight Board (‘PCAOB’)
B The Act requires all US listed companies to have an audit commitee
C The Act restricts the additional services that an auditor can provide to an audit client
D The Act requires directors to be professionally qualified to act as directors of public companies
. Which of the following is not a principle of the OECD framework?
A Disclosure and transparency
B Innovation and adaptability
C Responsibilities of the board
D Shareholders’ rights of ownership
