Corporate Governance MCQs and Notes

M

Mr. Dubey • 52.52K Points
Coach

Q 91. Disqualification of directors may result from breaches under the

(A) Health and Safety Act

(B) Financial Services Act

(C) Sale of Goods Act

(D) Companies Act

M

Mr. Dubey • 52.52K Points
Coach

Q 92. A director of a limited company may not be liable for wrongful trading if he or she

(A) increased the valuation of its inventories to cover any potential shortfall

(B) brought in some expected sales from next year in to the current year

(C) took every step to minimise the potential loss to creditors

(D) introduce into the balance sheet an asset based on a valuation of its brands sufficient to meet

M

Mr. Dubey • 52.52K Points
Coach

Q 93. Fraudulent trading may be

(A) a criminal offence committed only by directors of a limited company

(B) a civil and a criminal offence committed by an employee

(C) a civil and a criminal offence committed only by directors of a limited company

(D) a civil offence committed by an employee

M

Mr. Dubey • 52.52K Points
Coach

Q 94. A company may become insolvent if it

(A) makes a loss

(B) has negative working capital

(C) cannot meet its budgeted level of profit

(D) cannot pay creditors in full after realisation of its assets

M

Mr. Dubey • 52.52K Points
Coach

Q 95. Directors responsibilities are unlikely to include

(A) a duty to keep proper accounting records

(B) a fiduciary duty

(C) a duty to propose high dividends for shareholders

(D) a duty of care

M

Mr. Dubey • 52.52K Points
Coach

Q 96. External audit of the accounts of a limited company is required?

(A) Because it is demanded by the company’s bankers

(B) By the companies act 2006

(C) At the discretion of the shareholders

(D) To detect fraud

M

Mr. Dubey • 52.52K Points
Coach

Q 97. Which of the following is not one of the underlying principles of the corporate governance combined code of practice?

(A) Accountability

(B) Openness

(C) Acceptability

(D) Integrity

M

Mr. Dubey • 52.52K Points
Coach

Q 98. The framework for establishing good corporate governance and accountability was originally setup by

(A) Nestle committee

(B) Rowntree committee

(C) Cadbury committee

(D) Thornton committee