CORPORATE GOVERNANCE PROFESSIONAL

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Multiple Choices:

1. Corporate Governance is________.

a) About ethical conduct in business
b) Direct or indirect concerns in the organization
c) A manufacturing system
d) None of the above

2. The term corporate governance is derived from the__________.

a) Greek word
b) English word
c) French word
d) Latin word

3. The definition “Corporate Governance is the system by which business directed and controlled” is given by

a) SEBI committee
b) OECD committee
c) Cadbury committee
d) All of the above

4. Internal control is implemented by the________.

a) Board of directors
b) Audit committee
c) Management
d) All of the above

5. OECD stands for__________

6. Which of the following have the power to hire fire and compensate the top management?

a) Board of directors
b) Audit committee
c) Shareholders
d) Management

7. CII stands for ______________

8. The managers are expected to act in the interest of:

a) Audit committee
b) Stakeholders
c) Employees
d) Customers

9. To endorse the organization strategy, develop directional policy, appoint, supervise and remunerate senior executives and to ensure accountability of the organization to its owners and authorities is the responsibility of:

a) CEO
b) Manager
c) Top management
d) Board of directors

10. SEBI stands for_________________

11. The role of corporate governance is_______

a) To ensure the efficient use of resources
b) It increases the shareholders’ value
c) Reduce the procurement and inventory cost
d) All of the above

12. Which of the following is not the issue of corporate governance?

a) Internal control
b) Compensation of CEO and other directors
c) Management of risk
d) Rights of corporation

13. The annual report should not include

a) How decision are taken by the board
b) The name of the chairman, CEO and other directors
c) Ability to hire management
d) The number of meeting

14. __________ is equal to the market price of his holding in shares.

a) Stakeholders wealth
b) Ethical conduct
c) Shareholder’s wealth
d) None of these

15. The key element of good corporate governance principle include

a) Honesty
b) Mutual respect
c) Performance orientation
d) All of the above

16. SOX stands for_____________________

17. The commonly accepted principle of corporate governance are___________

a) Protection of shareholders right
b) Role and responsibilities of board
c) Interest of other stakeholders
d) All of the above

18. CII developed code of corporate governance in__________________

a) 1997
b) 1996
c) 1994
d) 1878

19. The property right is views simply as _________________

a) Planning right
b) Control right
c) Both a & b
d) None of the above

20. In which type of model the supervisory board is elected by shareholders and labor unions?

a) Japanese model
b) Anglo American model
c) German model
d) The Indian perspective

21. Which of the following come under the five principles of ethical power for organization?

a) Purpose
b) Pride
c) Patience
d) All of the above

22. Which of the following are the theories of corporate governance?

a) Shareholders theory vs. stakeholders’ theory
b) Stewardship theory
c) Property right theory
d) All of the above

23. The stewardship theory is__________

a) Control oriented
b) Involvement oriented
c) Both a &b
d) None of these

24. ____________ include government nominees and representatives of financial institutions.

a) Board of directors
b) Creditors, suppliers
c) Nominee directors
d) Chief executive officer

25. The __________ oversees internal control and disclosure controls and procedures for financial reporting.

a) Nominating committee
b) Audit committee
c) Board committee
d) Higgs committee

26. MDAR stands for_______________

27. Liaison committee designed to make a link between two groups or committees.

a) True
b) False

28. Cadbury committee established in______________

a) 1999
b) 1995
c) 1992
d) 2002

29. How many recommendation is made by CII code

a) 17

b) 18
c) 16
d) 19

30. Kumar mangalam committee is appointed by the__________

a) CII
b) SEBI
c) Government
d) None of the above

31. The remuneration of the non-executive directors should be decided by the______

a) Board of directors
b) Top management
c) Stakeholders
d) Entire board

32. Which of the following committee was appointed by the SEBI to make recommendations on the representation of independent directors on company board and the composition of audit committee?

a) Cadbury committee
b) Kumar mangalam committee
c) Naresh Chandra committee
d) Board committee

33. Basic shareholders rights include the right to.

a) Secure methods of ownership
b) Convey or transfer shares
c) Participate and vote in general shareholder meetings
d) All of the above

34. Which of the following is use to ensure that the takeover bids are serious?

a) Disclosure
b) Trigger
c) Escrow
d) Creeping acquisition

35. Which of the following are the natures of complaints by shareholders?

a) Non receipt of dividend
b) Change of address
c) Transmission of shares
d) All of the above

36. The word “transmission” means -

a) Transfer by operation of law
b) Transfer by operation
c) Both a & b
d) None of the above

37. Competition, debt covenants, takeover and media pressure are the_____

a) Internal corporate governance controls
b) External corporate governance control
c) Both a & b
d) None of the above

38. Simple directors who attends board meeting of a company and participate of a company and participate in the matters before the board is -

a) Ordinary directors
b) Managing directors
c) Executive directors
d) Shadow directors

39. The director who perform a specific role in a company under a service contract which requires a regular, possibly daily, involvement in management is known as________

a) Non-executive director
b) Additional director
c) Executive director
d) Ordinary director

40. Which of the following is the duty of directors?

a) Statutory duties
b) Duties of general nature
c) Both a & b
d) None of the above

41. Which of the following are the not the general duty of directors?

a) Duty of good faith
b) Duty of care
c) Duty not to delegate
d) To disclose interest

42. A document that specifies the regulations for a company’s operation is known as________

a) Memorandum of association
b) Articles of association
c) Both a & b
d) None of the above

43. Any person, company, or other institution that owns at least one share in a company is known as________

a) Stakeholder
b) Employees
c) Shareholder
d) Customer

44. Nomination committee is appointed by the

a) CEO
b) Board of directors
c) Management
d) Audit committee

45. The profit earned by the company with reference to the cost of capital in terms of economic profit is referred to as______

a) Pay-performance
b) Organization bylaws
c) Economic value added
d) None of the above

46. Which of the following are the types of the auditor?

a) Internal
b) External
c) Government
d) All of the above

47. The auditors specialize in crimes and are used by law enforcement organization when financial documents are involved in a crime is known as_______

a) Forensic auditor
b) Government auditor
c) External auditor
d) Internal auditor

48. Set of standards against which the quality of audits is performed and may be judges is______

a) Generally accepted accounting principles
b) General accepted auditing standards
c) Audit
d) None of the above

49. A ______________ audit is a review in which an auditor analyzes and verifies various records and processes relating to a company’s quality programs.

a) Cost audit
b) Forensic audit
c) Quality audit
d) None of the above

50. The important aspects of cost audit are_______

a) Property audit
b) Efficiency audit
c) Both a & b
d) Government audit

51. SICA stands for_______________

52. BIFR stands for_______________

53. Basic principles of audit are_______________

a) Integrity, objectivity & independence

b) Confidentiality

c) Documentation
d) All of the above

54. As per the SEBI guidelines, the audit committee shall meet at leasta)

a) Twice a year
b) Thrice a year
c) Once a year
d) None of the above

55. _________________ opined that the chairman of the audit committee should be an independent director.

a) Cadbury committee
b) Board committee
c) KM Birla committee
d) Audit committee

56. An audit committee should aware of technological changes, which is_________________ risk/condition.

a) Internal
b) External
c) Both a & b
d) None of the above

57. The committees of the board involve_________________

a) Supervisory committee
b) Risk management committee
c) Shareholders’ redressal committee
d) All of these

58. NBFCs stands for_________________

59. CSR stands for_________________

60. Which of the following is the essential of accord of Basel II?

a) Capital adequacy
b) Risk based supervision
c) Market disclosure
d) All of the above

61. Which of the following are the objectives of Basel II ?

a) To promote adequate capitalization of banks
b) To ensure better risk management
c) To strengthen the stability of banking system
d) All of the above

62. The ganguly committee is of the view that the draft minutes of the board meeting should be forwarded to the director’s within______________ hours of meeting.

a) 56
b) 64
c) 48
d) 32

63. In which ethical principle of the business ethics are measured by rightness of an act and depend little on the results of this act?

a) Teleological ethical system
b) Deontological ethical system
c) Hybrid theory
d) Individual freedom

64. One of the major ethical issue in advertising is the use of______________

a) True
b) False

65. Major social responsibilities of business involve

a) Optimum utilization of scarce national resources
b) Responsibility no to make losses
c) Improve quality of life
d) All of above

66. Government is thinking of making it mandatory for the companies to spend_________________% of their net profits on CSR.

a) 2
b) 4
c) 6
d) 8

67. It is the responsibility of the firm towards its________________ to avoid any type of cartel formation that a attempts to reap monopoly profits.

a) Shareholders
b) Customers
c) Employees
d) Management

68. Four important group that business are shareholders, employees, customers and_________________

a) Management
b) Board of director
c) Society
d) Stakeholder

69. NGO stands for_________________

70. Employees should get_________________ wages

a) Clear
b) Minimum
c) Maximum
d) Fair

71. Objectives of environmental audit are__________

a) Verification of legislative and regulatory compliance
b) Assessment of internal policy and procedural conformamance
c) Establishment of current practice status
d) All of the above

72. Review of documents and records, Review of policies, interviews are comes under which stage

a) Pre-audit stage
b) Post-audit stage
c) Audit stage
d) None

73. Environment protection act was passed in________________ for the protection of environment.

a) 1988
b) 1999
c) 1986
d) 1990

74. The financial or non-financial support of an activity, used primarily to reach the given business goals is_______

a) Media
b) Finance
c) Both a &b
d) Sponsorship

75. A printed report giving news or information of interest to a special group.

a) Newsletter
b) Formal meeting
c) Mailing list
d) Media release

76. Media can be used to promote_______________ communication.

a) One way
b) Two way
c) Both a & b
d) None of the above

77. Businesses arrange for______________ meetings with powerful stakeholders.

a) Information display
b) Public forum
c) Formal meeting
d) Informal meeting

78. MRTP stands for_________________

79. IRDA stands for_________________

80. It is said to be exist where there is a large number of procedures (firms) producing a same kind of product.

a) Monopoly competition
b) Monopolistic competition
c) Perfect competition
d) None of the above

81. Which of the following aspects of economic activity is not control by MRTP?

a) Restrictive on buying/selling
b) Unfair trade practices
c) Concentration of economic power
d) Restrictive trade practices

82. Price control is the restriction on maximum prices that is established and maintained by the government.

a) True
b) False

83. Public policy is an attempt by the government to address a private issue.

a) True
b) False

84. The SEBI was established on________________

a) March 12, 1992
b) September 14, 1992
c) April 12, 1992
d) June 15, 1993

85. The seller of the security is________

a) Bear
b) Bull
c) Both a & b
d) None of the above

86. Insider trading can be defined as the sale or purchase of securities by persons who possess price sensitive information about the company.

a) True
b) False

87. ___________ makes a commitment to get the underwritten issue subscribed either by other or by them.

a) Utilitarianism
b) Underwriters
c) Insider trading
d) None of the above

88. The board of SEBI consists of_______________

a) 8
b) 7
c) 4
d) 6

89. SEBI has three functions rolled into one body quasi-legislative, quasi-judicial, and quasi-executive.

a) True
b) False

90. SEBI is the regulator for the securities market in India.

a) True
b) False

91. AMFI stands for_________________.

92. Buying a commodity at a low price and instantly selling it for a higher price in another market is known as________

a) Hedging
b) Speculating
c) Arbitrage
d) Shifting of risk

93. An over-the-counter market where buyers and sellers conduct foreign exchange transaction.

a) Commodity exchange
b) Foreign direct investment
c) FOREX
d) None of the above

94. Licensing grant a permit to aloe the use of something or to allow a business activity to take place.

a) True
b) False

95. Government often uses quotas to restrict export.

a) True
b) False

96. Private companies can enjoy the right to transfer shares.

a) True
b) False

97. India has 22 stock exchanges.

a) True
b) False

98. Foreign companies are those, which have been incorporated outside India and conduct business in India.

a) True
b) False

99. Clause 49 has been prepared by the Reserve Bank of India.

a) True
b) False

100. Corporate Governance ensures easy access to capital.

a) True
b) False