Corporate Governance MCQs and Notes

M

Mr. Dubey • 95.58K Points
Coach

Q 21. The OECD argues that corporate governance problems arise because:

  • (A) Ownership and control is separated
  • (B) Managers always act in their own self interest
  • (C) Profit maximization is the main objective of organizations
  • (D) Stakeholders have differing levels of power

M

Mr. Dubey • 95.58K Points
Coach

Q 22. Fraudulent trading may be

  • (A) a civil offence committed by any employee
  • (B) a criminal offence committed only by directors of a limited company
  • (C) a civil and a criminal offence committed only by directors of a limited company
  • (D) a civil and a criminal offence committed by any employee

M

Mr. Dubey • 95.58K Points
Coach

Q 23. A director of a limited company may not be liable for wrongful trading if he or she

  • (A) took every step to minimise the potential loss to creditors
  • (B) increased the valuation of its inventories to cover any potential shortfall
  • (C) introduced into the balance sheet an asset based on a valuation of its brands sufficient to meet any shortfall
  • (D) brought in some expected sales from next year into the current year

M

Mr. Dubey • 95.58K Points
Coach

Q 24. A company may become insolvent if it

  • (A) has negative working capital
  • (B) cannot meet its budgeted level of profit
  • (C) makes a loss
  • (D) cannot pay creditors in full after realisation of its assets

M

Mr. Dubey • 95.58K Points
Coach

Q 25. Directors’ responsibilities are unlikely to include.

  • (A) a fiduciary duty
  • (B) a duty to keep proper accounting records
  • (C) a duty to propose high dividends for shareholders
  • (D) a duty of care

M

Mr. Dubey • 95.58K Points
Coach

Q 26. 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 2013
  • (C) at the discretion of the shareholders
  • (D) to detect fraud

M

Mr. Dubey • 95.58K Points
Coach

Q 27. Managerial ethics can be characterised by all of the following levels except

  • (A) immoral management
  • (B) amoral management
  • (C) demoral management
  • (D) moral management

M

Mr. Dubey • 95.58K Points
Coach

Q 28. In a organization, decision making is delegated as far down the chain of command as possible.

  • (A) Decentralized
  • (B) Creative
  • (C) Flexible
  • (D) Centralized

M

Mr. Dubey • 95.58K Points
Coach

Q 29. are standards of behaviour that groups expect of their members.

  • (A) Codes of conduct.
  • (B) Group values.
  • (C) Group norms.
  • (D) Organizational norms.

M

Mr. Dubey • 95.58K Points
Coach

Q 30. Which of the following is NOT one of the primary elements of a strong organizational compliance program?

  • (A) A written code of conduct
  • (B) An ethics officer
  • (C) Significant financial expenditures
  • (D) A formal ethics training program

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