Corporate Governance MCQs and Notes

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Mr. Dubey • 52.30K Points
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Q 51. Which of the following would most effectively act as the primary objective of a business organisation?

(A) To make a profit

(B) To procure resources

(C) To communicate with shareholders

(D) To mediate between the organisation and the environment

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Mr. Dubey • 52.30K Points
Coach

Q 52. A sets out the purpose and general direction for the organisation?

(A) Mission statement

(B) Purpose statement

(C) Vision

(D) Profit statement

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Mr. Dubey • 52.30K Points
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Q 53. What is triple bottom line?

(A) An accounting tool that looks at the impact on people, planet and profits.

(B) A management strategy which states all the attention should be on profits.

(C) An accounting tool that looks at cost, profit and loss.

(D) A management strategy which focuses on corporate social responsibility.

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Mr. Dubey • 52.30K Points
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Q 54. What is green washing?

(A) Transforming products to be more ethical.

(B) Making a product appear more ethical that it really is.

(C) Converting the company to green production methods.

(D) Convincing customers to buy ethically.

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Mr. Dubey • 52.30K Points
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Q 55. What is the enlightened self-interest model of CSR?

(A) That it is in an organization's own best interest to put itself first rather than its ethics.

(B) That it is in an organization's best interest to consider what a shareholder would want.

(C) That it is in an organization's own best interest to act in an ethical way.

(D) That it is in an organization's own best interest to follow the legislation and abide by the law.

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Mr. Dubey • 52.30K Points
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Q 56. Why, according to stakeholder theory, is it in companies' best interests to pay attention to their stakeholders?

(A) If firms only act in their own self-interest employees may feel exploited.

(B) If firms only act in their own self-interest government might put more regulation on them.

(C) If firms only act in their own self-interest customers might not like the image that the company portray.

(D) If firms only act in their own self-interest and inflict harm on stakeholders then society might withdraw its support.

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Mr. Dubey • 52.30K Points
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Q 57. What, according to Adam Smith, is the best way to promote collective interest?

(A) Through government making decisions about what is in the public interest.

(B) Through everyone working together to support each other.

(C) Through everyone working on their own self interest

(D) Through individuals forgoing their personal interest for the good of the collective.

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Mr. Dubey • 52.30K Points
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Q 58. What is meant by the phrase 'teleological ethics'?

(A) Is used to judge is an action is right, fair and honest.

(B) An action can only be judged by its consequences

(C) Developing the individual personal characteristics

(D) The key purpose of ethics is to increase freedom.

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Mr. Dubey • 52.30K Points
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Q 59. Which act provides sweeping new legal protection for employees who report possible securities fraud making it unlawful for companies to “discharge, demote, suspend, threaten, harass, or in any other manner discriminate against” them?

(A) Sarbanes-Oxley Act of 2002

(B) Foreign Corruption Act

(C) Economic Espionage Act

(D) U.S. vs. O’Hagan

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Mr. Dubey • 52.30K Points
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Q 60. Shareholders have the right to know all except:

(A) Information on the management of the corporation

(B) Trade secrets

(C) The companies financial position

(D) The companies general plans for the future.