Corporate Governance MCQs and Notes

M

Mr. Dubey • 52.30K Points
Coach

Q 11. Quantification in ethics may be done by

(A) Putting monetary value on prospective actions

(B) Comparing the value of one action with another

(C) Both A and B

(D) Neither A or B

M

Mr. Dubey • 52.30K Points
Coach

Q 12. Political intrusion into business

(A) May be desirable in some circumstances

(B) Is anathema

(C) Politics should have no say in how business is conducted

(D) state legislation over-rides Federal Legislation

M

Mr. Dubey • 52.30K Points
Coach

Q 13. Periodic ethics audits

(A) Are required by the Indian stock exchange

(B) A method of fostering ethics

(C) A method of quantitative assessment

(D) Always use external consultants

M

Mr. Dubey • 52.30K Points
Coach

Q 14. Which intervention resulted from the Enron scandal?

(A) The Hampel Committee

(B) The Sarbannes-Oxley Act

(C) The Greenbury Committee

(D) The Cadbury Committee

M

Mr. Dubey • 52.30K Points
Coach

Q 15. Where an organization takes into account the effect its strategic decisions have on society, this is known as:

(A) Corporate governance

(B) Business policy

(C) Business ethics

(D) Corporate social responsibility

M

Mr. Dubey • 52.30K Points
Coach

Q 16. The view that sees profit maximization as the main objective is known as:

(A) Shareholder theory

(B) Principal-agent problem

(C) Stakeholder theory

(D) Corporation theory

M

Mr. Dubey • 52.30K Points
Coach

Q 17. The term 'asymmetry of information' means information in a corporation is:

(A) Transferable to all stakeholder

(B) Not transferable to all stakeholders

(C) Not equally transparent to all stakeholders

(D) Equally transparent to all stakeholders

M

Mr. Dubey • 52.30K Points
Coach

Q 18. What makes a corporation distinct from a partnership?

(A) If the members of a corporation die, the corporation remains in existence providing it has capital

(B) If the members of a corporation die, the corporation ceases to exist

(C) A corporation cannot own property

(D) A corporation cannot be held responsible for the illegal acts of its employees

M

Mr. Dubey • 52.30K Points
Coach

Q 19. The modern corporation has four characteristics. These are limited liability, legal personality, centralized management and:

(A) Fiduciary duty

(B) Stakeholders

(C) Shareholders

(D) Transferability

M

Mr. Dubey • 52.30K Points
Coach

Q 20. An organization that is owned by shareholders but managed by agents on their behalf is conventionally known as the modern:

(A) Conglomerate

(B) Corporation

(C) Company

(D) Firm