Q1. The concept of Corporate Governance is applicable to:
a) Private sector only
b) Public sector only
c) Government only
d) Both private and public sector
Answer
Ans: d) Both private and public sector
Q2. The question of Corporate Governance has come up mainly due to:
a) Liberalization of economy
b) Deregulation of industry and business
c) Public demand for better performance
d) All the above
Answer
Ans: d) All the above
Q3. As per Raja J Chelliah, weakness in the system of governance in India can only be remedied through:
a) Stricter laws
b) Movement of moral regeneration
c) Codes of conduct
d) More privatization
Answer
Ans: b) Movement of moral regeneration
Q4. BOD stands for:
a) Board of Director
b) Board of Directors
c) Boards of Decision
d) Directors of the Board
Answer
Ans: b) Board of Directors
Q5. Which one of the following is not a category of shareholders in India?
a) Promoters
b) Financial institutions
c) Individual investors
d) Ministries of Government of India
Answer
Ans: d) Ministries of Government of India
Q6. The BOD should consist of:
a) Only executive directors
b) Majority of executive directors
c) Only non-executive director
d) A good mix of executive and non-executive directors
Answer
Ans: d) A good mix of executive and non-executive directors
Q7. Which one of the following is not a duty of the directors?
a) Duty of care and skill in discharge of their function
b) Duty to manage the operational functioning of the company
c) Duty to attend board meetings and devote sufficient time and attention to affairs of the company
d) Duty not to exceed powers
Answer
Ans: b) Duty to manage the operational functioning of the company
Q8. The Companies (Amendment) Act, 1996 came into force on:
a) 1 January 1996
b) 1 March 1997
c) 1 April 1996
d) 1 January 1997
Answer
Ans: d) 1 January 1997
Q9. SEBI stands for:
a) Securities and Exchange Board of India
b) Securities and Enterprises Board of India
c) Selection of Enterprises Board of India
d) Small Exchanges Board of India
Answer
Ans: a) Securities and Exchange Board of India
Q10. Cadbury committee report was published in UK in:
a) 1990
b) 1980
c) 1992
d) 1993
Answer
Ans: c) 1992
Q11. Which one of the following was not a section of the above document?
a) Role of board of directors
b) Role of the outside non-executive directors
c) Executive directors and their remunerations
d) Evaluation of the BOD
Answer
Ans: d) Evaluation of the BOD
Q12. In respect of auditing which of the following aspects is not a part of Cadbury Report.
a) Importance of audit
b) Professional objectivity
c) Rotation of auditors
d) Fixed auditors
Answer
Ans: d) Fixed auditors
Q13. Which one of the following organizations have not contributed to rising awareness about good corporate governance.
a) EEC
b) OPEC
c) GATT
d) WTO
Answer
Ans: b) OPEC
Q14. Who prepared the report titled “Desirable Corporate Governance in India -A Code”:
a) Government of India
b) FICI
c) CII’s Task Force
d) UTI
Answer
Ans: c) CII’s Task Force
Q15. The number of recommendations made in above report were:
a) 5
b) 17
c) 13
d) 9
Answer
Ans: b) 17
Q16. Desirable Corporate Governance: A Code (DCGC) recommends that the full board should meet minimum of following items:
a) Six times a year
b) Once a year
c) Twice a year
Answer
Ans: a) Six times a year
Q17. The word “value” is derived from the French/Latin word:
a) Valeo
b) Vaelram
c) Valoir
d) Valer
Answer
Ans: c) Valoir
Q18. A value is a concept ___________ (choose the word most suited to fill the blank).
a) Behavioural
b) Perceptual
c) Management
d) Decision
Answer
Ans: a) Behavioural
Q19. Which one of the following is not a major stakeholder in Corporate Governance?
a) Employees
b) Customers
c) Suppliers
d) Auditors
Answer
Ans: d) Auditors
Q20. The ethics of Corporate Governance is therefore the determination of what is right, proper and ___________ .
a) Good
b) Pleasing
c) Just
d) Practical
Answer
Ans: c) Just
Q21. The subject of business ethics is multi-leveled. The three levels normally considered are individual, organization and______________.
a) Government
b) Society
c) Industry
d) Business
Answer
Ans: b) Society
Q22. Many managers think of ethics as a question of personal __________________.
a) Judgment
b) Values
c) Thinking
d) Scruples
Answer
Ans: d) Scruples
Q23. Ethical issues are truly managerial dilemma because they represent a conflict between an organization economic performance and its:
a) Reputation
b) Growth
c) Social/ethical performance
d) Employees job satisfaction
Answer
Ans: c) Social/ethical performance
Q24. Which one of the following is not a method of analysis of an ethical decision:
a) Economic analysis
b) Legal analysis
c) Ethical analysis
d) Cost-benefit analysis
Answer
Ans: d) Cost-benefit analysis
Q25. Feedback cycle (Evaluation of performance) in BOD was advocated by:
a) Robert William
b) Zander A
c) Sir Adrian Cadbury
d) Peter F Drucker
Answer
Ans: b) Zander A
Q26. Which one of the following is not a feature of implementing evaluation process in corporate governance?
a) Vision
b) Planning
c) Ownership
d) Results
Answer
Ans: c) Ownership
Q27. Which one of the following is not an essential feature of conducting board’s performance evaluation?
a) The directors themselves
b) The role of the board
c) The working style of the board
d) The composition of the board
Answer
Ans: d) The composition of the board
Q28. Who should evaluate the performance of the boards as whole:-
a) Chairman
b) CEO
c) Whole Board
d) The Promoters and the chairman
Answer
Ans: c) Whole Board
Q29. Who should evaluate the performance of the CEO (when he is not the Chairman)?
a) Chairman
b) Whole board
c) Whole board (less CEO)
d) Promoters
Answer
Ans: c) Whole board (less CEO)
Q30. Which markets embody sense of justice?
a) Mixed markets
b) Liberal markets
c) Free markets
d) None of the above
Answer
Ans: c) Free markets
Q31. Which of the following choices does NOT describe a situation that is covered by the concept of rights?
a) The absence of prohibitions against an activity
b) The authorization to do something to secure one’s interests
c) The necessity of doing something required by authority
d) The existence of prohibitions on others to enable individuals to pursue an activity
Answer
Ans: a) The absence of prohibitions against an activity
Q32. Which theory claims that people would be lazy without private property?
a) Capitalism
b) Socialism
c) Utilitarianism
d) None of the above
Answer
Ans: c) Utilitarianism
Q33. The most influential economic institutions are designed to achieve? Select correct option:
a) Production of the goods
b) Distribution of the goods
c) Both a & b
d) None of the above
Answer
Ans: c) Both a & b
Q34. According to Aristotle’s view, how do we learn virtue?
a) By habit
b) By dialectical argument
c) By rational instruction
d) By learning from our mistakes
Answer
Ans: d) By learning from our mistakes
Q35. The concept that there are no relevant differences among people that can justify unequal treatment is known as?
a) Egalitarianism
b) Utilitarianism
c) Socialism
d) None of the above
Answer
Ans: a) Egalitarianism
Q36. Commodities that are considered valuable only because they lead to other good things are called:
a) Instrumental goods
b) Instrumental values
c) Intrinsic goods
d) Intrinsic values
Answer
Ans: b) Instrumental values
Q37. Socialist view on distribution is best described as:
a) From each according to his ability, to each according to his needs
b) The benefits a person receives should be proportional to his contribution
c) From each they choose, to each as they are chosen
d) Always treat humanity as an end in itself rather than as a means
Answer
Ans: a) From each according to his ability, to each according to his needs
Q38. Factual evidence has the following properties except?
a) Time bound
b) Accurate
c) Relevant
d) Complete
Answer
Ans: c) Relevant
Q39. In which country Locke’s property rights have been influential?
a) England
b) Germany
c) America
d) Greek
Answer
Ans: c) America
Q40. Which of the following are the criteria for determining moral right and wrong?
a) Universalizability
b) Reversibility
c) Both a & b
d) None of the above
Answer
Ans: a) Universalizability
Q41. Utilitarianism is unable to deal with following kind of moral issues?
a) Rights
b) Justice
c) Both a & b
d) None of the above
Answer
Ans: c) Both a & b
Q42. Privacy is an example of?
a) Positive right
b) Basic need
c) Negative right
d) None of the above
Answer
Ans: a) Positive right
Q43. Which theory includes means of production and selling one’s labour?
a) Capitalist systems
b) Free economy system
c) Socialist system
d) None of the above
Answer
Ans: a) Capitalist systems
Q44. Equality of income and equality of opportunity is refers to:
a) Equality
b) Political equality
c) Economic equality
d) Human equality
Answer
Ans: c) Economic equality
Q45. Through utilitarianism offers a clear-cut method of calculating morality. What is the number of problems identified with this method?
a) 5
b) 4
c) 3
d) 2
Answer
Ans: a) 5
Q46. Who presented the theory of absolute advantage?
a) Adam Smith
b) Friedrich A. Hike
c) Murray Roth bard
d) Eric Mack
Answer
Ans: a) Adam Smith
Q47. Which of the following are components of free market systems?
a) Private property system
b) Voluntary exchange system
c) Both a & b
d) None of the above
Answer
Ans: b) Voluntary exchange system
Q48. The most important reason for having a Code is that:
a) it provides a formal frame of reference for values
b) it is required by the Board
c) it helps establish a good reputation
d) it gives employment to HR staff
Answer
Ans: a) it provides a formal frame of reference for values
Q49. Despite cultural diversity it is important that we consider:
a) various principles of value
b) always follow the UN principles
c) give salience to the dominant national culture
d) follow only your own religious laws
Answer
Ans: a) various principles of value
Q50. Cultural relativism means
a) One culture is quite as good as any other nominated culture
b) Culture is the only reference point for a values system
c) activities should be interpreted in terms of one’s own culture
d) One culture should be compared to another
Answer
Ans: c) activities should be interpreted in terms of one’s own culture
Q51. It is the function of an ethics code to:
a) set standards
b) apply sanctions
c) neither
d) both
Answer
Ans: d) both
Q52. Ethics is about
a) improvement in standards
b) rewards and sanctions
c) reputation
d) all of the above
Answer
Ans: d) all of the above
Q53. Ethics is about
a) tangible and intangible benefits
b) only tangible benefits
c) only intangible benefits
d) something other than the above
Answer
Ans: a) tangible and intangible benefits
Q54. Ethics is the same as
a) legality
b) strict compliance
c) conformance to agreed values
d) following black letter law
Answer
Ans: c) conformance to agreed values
Q55. Where does ethical loyalty primarily lie?
a) towards family
b) towards agreed principles
c) towards the company
d) towards professional standards
Answer
Ans: b) towards agreed principles
Q56. Ethics is concerned about
a) the means of achieving something
b) the ends to be achieved
c) neither of those
d) both of those
Answer
Ans: a) the means of achieving something
Q57. Time frames are
a) crucial part of ethics
b) irrelevant to ethics
c) of marginal interest to ethics
d) an explanation of spatiality
Answer
Ans: d) an explanation of spatiality
Q58. Circumstances that leave a person uncertain but not altogether unsure about what he or she is doing is a feature of
a) Excusing Conditions
b) Moral reasoning
c) Mitigating factors
d) Ignorance
Answer
Ans: b) Moral reasoning
Q59. What type of resource depletion is marked by increasing rates of usage and sudden, complete depletion within a short period of time?
a) Depletion of fossil fuels
b) Exponential Depletion
c) Peaked depletion
d) Species depletion
Answer
Ans: b) Exponential Depletion
Q60. Which of the following is not considered as part of the three stages of moral development proposed by Carol Gilligan?
a) Social Contract Orientation
b) Principled morality
c) conventional morality
d) progressing from selfish
Answer
Ans: c) conventional morality
Q61. Which of the following is the type of moral standards?
a) Utilitarianism
b) Rights
c) Justice
d) All of the above
Answer
Ans: d) All of the above
Q62. What are the levels on which ethical decision making occurs?
a) Individual
b) Organizational
c) Business system
d) All of the given
Answer
Ans: d) All of the given
Q63. Which one of the following is not an essential component of moral reasoning? Select correct option:
a) Understanding of reasonable requirement of moral standard
b) Evidence or information regarding these moral standards
c) Botha&b
d) None of the given options
Answer
Ans: d) None of the given options
Q64. Which of the following refers to the ability of a person or a country to produce a particular good at a lower opportunity cost than another country?
a) Absolute advantage
b) Comparative advantage
c) Resource efficiency
d) Natural advantage
Answer
Ans: b) Comparative advantage
Q65. Which one of the following is not a basic type of moral standards?
a) Utilitarianism
b) Rights
c) Justice
d) Relevant
Answer
Ans: d) Relevant
Q66. Which philosopher defended the idea that we should always treat humanity as an end in itself rather than a means?
a) Kant
b) Mill
c) Bentham
d) Rawls
Answer
Ans: a) Kant
Q67. Which one of the following is NOT a trait of character that makes an individual a morally good human being?
a) Courage
b) Temperance
c) Hope
d) Justice
Answer
Ans: d) Justice
Q68. Essence of Corporate Governance is–
a)Effective accountability
b) Good management
c) Codes of conduct
d)Transparency
Answer
Ans: a)Effective accountability
2. Corporate Governance is a system of–
a) Structuring, operating and controlling a company
b) Good management
c) Codes of conduct
d) Ensuring maximum profits for the share holder
Answer
Ans: a) Structuring, operating and controlling a company
Q69. The concept of Corporate Governance is application to–
a) Private sector only
b) Public sector only
c) Government only
d)Both private and public sector
Answer
Ans: d)Both private and public sector
Q70. The questions of Corporate Governance have come up mainly due to–
a) Liberalization of economy
b) Deregulation of industry and business
c) Public demand for better performance
d) All the above
Answer
Ans: d) All the above
5. As per Raja J Chelliah weakness in the system of governance in India can only be remedied through–
a) Stricter laws
b) Movement of moral regeneration
c) Codes of conduct
d) More privatization
Answer
Ans: b) Movement of moral regeneration
Q71. A Corporate must be socially responsible for–
a) Society expect so
b) It is in the self inter of the corporate
c) It mitigate pressure and government regulations
d) All the above
Answer
Ans: d) All the above
Q72. Corporate Governance is poorly defined even today because–
a) Values and ethics cannot be typecast into a one – size -fits -all frameworks.
b) The Cadbury Committee of 1992 has erected a convention of severity of standards.
c) At the end of the day , giant corporations will continue to dominate society
d) None of these
Answer
Ans: a) Values and ethics cannot be typecast into a one – size -fits -all frameworks.
Q73. Which one of the following is not a category of share- holders in India?
a) Promoters
b) Financial Institutions
c) Individual Investors
d) Ministries of Government of India
Answer
Ans: d) Ministries of Government of India
Q74. In the private sector who has the firm hold over the companies?
a) Individual investors
b) Promoters
c) Financial Institutions
d) Customers
Answer
Ans: b) Promoters
Q75. In the public sector who selects/ appoints the board members?
a) The PSU concerned
b) Controlling administrative ministry
c) The BOD
d) Financial Institutions
Answer
Ans: b) Controlling administrative ministry
Q76. The head of the BOD is normally called–
a)CEO
b)President
c) Chairman
d) Managing Director
Answer
Ans: c) Chairman
Q77. For effective corporate governance CEO of the company–
a) Should always head the BOD
b) Should never head the BOD
c) Be allowed to exercise his choice to head the board
d) Should be allowed to appoint the head of the BOD
Answer
Ans: b) Should never head the BOD
Q78. The BOD should consists of–
a) Only executive directors
b) Majority of executive directors
c) Only non-executive director
d) A good mix of executive and non – executive directors
Answer
Ans: d) A good mix of executive and non – executive directors
Q79. Which one of the following is not a parameter of best boards?
a) Accountability of share holders
b) Maximization of profits
c) Independence of decision making
d) Transparency of disclosures
Answer
Ans: b) Maximization of profits
Q80. Desirable corporate governance in India – A code was prepared by–
a) Government of India
b) FICCI
c) Confederation of Indian Industries
d) None of these
Answer
Ans: c) Confederation of Indian Industries
Q81. Directors are Liable for–
a) Negligence and breach of trust
b) Misfeasance
c) None of the above
d) Both (a) and (b) above
Answer
Ans: d) Both (a) and (b) above
Q82. The directors appointed by financial institutions on the BOD are called–
a) Non-Executive directors
b) Executive directors
c) Nominee directors
d) Institutional directors
Answer
Ans: a) Non-Executive directors
Q83. The Companies Act 1956 came into force on–
a) 1 January, 1956
b) 1January, 1957
c) 1Apirl, 1956
d) 1April, 1957
Answer
Ans: c) 1Apirl, 1956
Q84. One of the terms of reference for SEBI’s committee on corporate governance in May 1999 was–
a) To draft a code of corporate best practices.
b) To offer comments on the Sir Cadbury’s report.
c) To draft instructions for an effective BOD.
d) None of these
Answer
Ans: a) To draft a code of corporate best practices.
Q85. The formula for Economic Value Added is–
a) Operating expenses (+) overhead expenses (-) Interest
b) ROI (-) Weighted average cost of capital (x) capital invested
c) Operating Profit (+) Capital Cost (-) Taxes
d) None of these
Answer
Ans: d) None of these (Correct is: = Net Operating Profit After Taxes (NOPAT) – (Capital * Cost of Capital)
Q86. Cadbury Committee report was publishes in UK in–
a) 1990
b) 1980
c) 1992
d) 1993
Answer
Ans: c) 1992
Q87. Cadbury Committee was set up to address the–
a) Problem of good corporate governance
b) Financial aspects of corporate governance
c) Problem of degeneration of values
d) Malpractices in the corporate
Answer
Ans: d) Malpractices in the corporate
Q88. Cadbury Committee along with its report published a document which was called–
a) Code of conduct for corporate
b) Code of ethical conduct
c) Code of best practices
d) None of the above
Answer
Ans: c) Code of best practices
Q89. Desirable Corporate Governance in India – A code had recommended that a full board’s meeting agenda item should require at least——-discussion.
a) 2 days
b) 1 day
c) half a day’s
d) None of these
Answer
Ans: c) half a day’s
Q90. In Indian conditions a voluntary code of Corporate Governance would be more meaningful, which out of the following supported the comment–
a) Greenburg Committee
b) Kumar Mangalam Birla Committee
c) CII National Council
d) Institute of Company Secretaries of India
Answer
Ans: b) Kumar Mangalam Birla Committee
Q91. Which out of the following is not expected out of an effective BOD?
a) Transparency of disclosure
b) Accountability to shareholders
c) Dependency of decision making
d) Responsiveness to society
Answer
Ans: d) Responsiveness to society
Q92. Who prepared the report titles “Desirable Corporate Governance in India – A Code “?
a) Government of India
b) FICI
c) CI I` s Task Force
d) UTI
Answer
Ans: c) CI I` s Task Force
Q93. The above report was based on the draft report prepared by–
a) Dr. Goswami
b) FICCI
c) Dr. CV Alexander
d) Mr Kumaramangalam
Answer
Ans: a) Dr. Goswami
Q94. The major roadblock for effective Governance has been–
a) Political Interference
b) Vested interests of management
c) Lack of control mechanism
d) Lack of societal pressure
Answer
Ans: a) Political Interference
Q95. Desirable Corporate Governance: A Code (DCGC) recommends that the full board . should meet minimum of following items–
a) Six times a year
b) Once a year
c) Twice a year
Answer
Ans: a) Six times a year
Q96. The National Task Force on Corporate Governance (set up by CII) was headed by —
a) Dr. Goswami
b) Mr. Rahul Bajaj
c) Dr. Omkar Goswami
d) Mr C K Birla
Answer
Ans: b) Mr. Rahul Bajaj
Q97. The word “value” is derived from the French /Latin word–
a) Valeo
b) Vaelram
c) Valoir
d) Valer
Answer
Ans: c) Valoir
Q98. A value is a —————– concept– ( choose the word most suited to fill the blank )
a) Behavioral
b) Perceptual
c) Management
d) Decision
Answer
Ans: a) Behavioral
Q99. Conflict of interest–
a) Situation where Shareholders are in conflict with other Stakeholders
d) Different stakeholder groups and individual employees trying to balance their various interests
c) Dispute between the Boards of Directors
d) Situation where company and the Government is at loggerheads.
Answer
Ans: d) Situation where company and the Government is at loggerheads.
Q100. The ethics of Corporate Governance is therefore the determination of what is right proper and………………
a) Good
b) Pleasing
c) Just
d) Practical
Answer
Ans: d) Practical
Q101. The word “Ethics” is derived from–
a) The Greek word “Ethos”
b) The French word “Valoir”
c) The Latin word “Valeu”
d) The Latin word “Vallis”
Answer
Ans: a) The Greek word “Ethos”
Q102. The subject of business ethics is multi- leveled. The three levels normally considered are individual, organization and …………………
a) Government
b) Society
c) Industry
d) Business
Answer
Ans: a) Government
Q103. Misrepresentation is referred as–
a) Error in a Court of Law committed by a Pubic Limited Company
b) Making false and misleading statements
c) Misunderstanding consumer needs
d) None of above
Answer
Ans: b) Making false and misleading statements
Q104. Ethical issues are truly managerial dilemma they represent a conflict between an organization economic performance and its–
a) Reputation
b) Growth
c) Social / ethical performance
d) Employees job satisfaction
Answer
Ans: c) Social / ethical performance
Q105. A good Corporate Governance structure is a working system for–
a) Recognizing the myth that is ‘democracy’
b) Appropriate monitoring of compliance and performance
c) Lobbying for necessary legislation when the courts do not give favorable decisions
d) None of these
Answer
Ans: b) Appropriate monitoring of compliance and performance
