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WorksheetsCorporate governance revision quiz 1
Total questions: 52
Worksheet time: 26mins
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
Key players in good corporate governance are
Directors and management of corporation
Audit committee members
Internal and External auditors
Shareholders
1.Corporate governance is most often viewed as both the structure and the relationships which determine corporate direction and performance.
True
False
1.Corporate governance is most often viewed as both the structure and the relationships which determine corporate direction and performance.
True
False
2.Corporate governance does not have any impact on the share price.
True
False
3.The Board of Directors (BoD)remains in effective control of the affairs of the company at all times
True
False
4.Transparency in Board's processes and independence in the functioning of Boards
True
False
5.Accountability, Transparency, governance and Objectives are the four pillars of Corporate Governance.
True
False
6.A board of directors (BoD) is an elected group of individuals that represent shareholders.
True
False
7.Risk Management Department is a committee reportable to BoD.
True
False
8.A managing director must be an individual (a real person) and can be appointed for a maximum period of five years.
True
False
9.The charter and by-laws of the Company provide that the Board shall consist of not less than two nor more than 20 directors.
True
False
10.Management reflects the implementation of the governance decisions
True
False
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)
Ethics is derived from the ____________ word ‘ethos’.
Greek
Latin
Spanish
Japanese
Which of the following is not among the 3 R’s of business Ethics?
Respect
Results
Reliability
Responsibility
___________ is the oldest source of ethical inspiration.
Culture
Religion
Philosophy
Legal system
______________ Ethics is the rules and principles decided by upper management.
Societal
Managerial
Professional
Individual
___________ management is neither immoral nor moral.
Marketing
Business
Amoral
Finance
___________ is the duty or path of righteousness.
Dharma
Artha
Kama
Moksha
According to _________, ethics is the study of what is right or good in human conduct.
Robert Solomon
Churchill
William Shaw
Mackenzie
The 3 C's of business ethics were given by ________.
Churchill
Josephson Institute
Robert Solomon
William Shaw
There are ________ rules associated with the 3 C's of business ethics.
9
8
6
7
The basic justification of ethics is to ________________.
Maximize profitability
Behave according to agreed rules
Build a commercial reputation
All of the above
In an organization, Whistle Blower refer to the.........
employer who inform the public about the company execution program.
employees who speak loud and create attention
employees who inform public/ government about the illegal practice or misconduct at workplace.
employees who keep remind others on the next task to do.
Below are things related to policies and procedures at workplace except
promotion
hiring
discipline
trade secret
Screening can be describe as a process of
eliminating the candidates who will not be a fit for the position /company.
deciding who will get the job.
final selecting the job applicant for the job candidate.
call the applicant for interview session.
Which statement best explain on imbreeding
promotion factor when a company exists primarily for the interests of a family.
someone who has worked for a company for a long period of time.
promotion for anyone who has high experience.
people who work for a company tend to be considered for promotions rather than hiring people from outside of the company.
The purpose of having discipline and discharge at workplace
as a punishment for the wrongdoing employees.
as a guideline to ensure employees are stay productive.
as a formal record to leave the company.
Below some guideline to set the wages/ salaries for the company except......
wages in the industry
community wage level
company capability
the law of attraction
an individual who observes misconduct by an entity or individual and reports that misconduct to an outsider, generally a private attorney.
(a)
In what condition whistle blower can be accepted? (you may have more than 1 answer)
has exhausted all internal channels for dissent before going public
compelling evidence that wrongful actions have been ordered or have occurred
has some chance of success
It is done from the appropriate non moral motive
Choose some of the best way to develop whistle blowing policy? (you may have more than 1 answer)
An effectively communicated statement of responsibility
A clearly defined procedure for reporting
No guarantee against retaliation
Well-trained personnel to receive and investigate reports
