NEW
Font size
WorksheetsQuiz 2_Corporate Governance Quiz
Total questions: 20
Worksheet time: 7mins
What is the primary purpose of the SEC Code of Corporate Governance for publicly-listed companies?
To increase company profits
To establish a framework for ethical business practices
To ensure compliance with tax regulations
To provide guidelines for corporate social responsibility
Which of the following is NOT a recommended committee under the SEC Code of Corporate Governance?
Audit Committee
Corporate Governance Committee
Board Risk Oversight Committee
Marketing Committee
According to the SEC Code, what is the role of the Board of Directors in relation to management?
To manage daily operations
To provide oversight and strategic guidance
To handle employee grievances
To conduct internal audits
Which principle emphasizes the Board's responsibility to ensure the integrity of financial reports?
Transparency and Full Disclosure
Accountability
Corporate Control
Ethical Responsibility
What is the maximum number of publicly-listed companies a non-executive director should serve concurrently, as recommended?
Three
Five
Seven
Nine
Which of the following is considered a ground for the permanent disqualification of a director?
Frequent absences in board meetings
Conviction of an offense involving moral turpitude
Holding shares in a competing company
Failure to disclose conflict of interest
What is the main objective of corporate governance?
To maximize shareholder value
To ensure compliance with environmental laws
To promote corporate philanthropy
To enhance employee satisfaction
Which unethical practice involves a director holding positions in two companies that do business with each other?
Insider trading
Interlocking directorship
Plain graft
Negligence of duty
What does the term 'insider trading' refer to?
Trading company shares within a closed group
Using confidential information to trade shares for personal gain
Trading shares without proper authorization
Manipulating stock prices through false information
Which of the following is an example of deceptive packaging?
Using eco-friendly materials
Mislabeling the weight of a product
Offering discounts on bulk purchases
Providing detailed product information
What is the purpose of establishing a code of conduct within a company?
To outline job descriptions
To guide compliance with legal and ethical obligations
To detail employee benefits
To set sales targets
Which committee is primarily responsible for overseeing the internal and external audit functions?
Corporate Governance Committee
Audit Committee
Board Risk Oversight Committee
Related Party Transaction Committee
What does 'caveat emptor' mean in the context of business ethics?
Seller beware
Buyer beware
Honest advertising
Fair trade
Which of the following actions exemplifies 'overpersuasion' in sales?
Providing detailed product information
Urging a customer to buy unnecessary items by appealing to emotions
Offering a money-back guarantee
Demonstrating product features
What is the role of the Board Risk Oversight Committee?
To manage daily business operations
To oversee the company's risk management framework
To handle employee disputes
To approve marketing strategies
Which of the following is a characteristic of good corporate governance?
Concentration of power
Transparency and full disclosure
Maximizing short-term profits
Limiting shareholder participation
What is 'misbranding' in the context of unethical business practices?
Selling counterfeit products
Using a well-known brand name without permission
Providing false or misleading information on product labels
Copying a competitor's packaging design
Which principle requires the Board to act in the best interest of the company and its shareholders?
Fairness
Accountability
Responsibility
Transparency
What is the consequence of a director's absence in more than 50% of all regular and special meetings without justifiable cause?
Suspension from the board
Permanent disqualification in the succeeding election
Reduction in director's fees
Issuance of a formal warning
Which of the following is NOT considered an unethical practice by corporate management?
Plain graft
Insider trading
Transparent financial reporting
Negligence of duty
