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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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View Answer

Ans: b) Society

Q22. Many managers think of ethics as a question of personal __________________.
a) Judgment
b) Values
c) Thinking
d) Scruples

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View Answer

Ans: c) Relevant

Q39. In which country Locke’s property rights have been influential?
a) England
b) Germany
c) America
d) Greek

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View Answer

Ans: d) both

Q52. Ethics is about
a) improvement in standards
b) rewards and sanctions
c) reputation
d) all of the above

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View Answer

Ans: d) Justice

Q68. Essence of Corporate Governance is–
a)Effective accountability
b) Good management
c) Codes of conduct
d)Transparency

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View Answer

Ans: b) Controlling administrative ministry

Q76. The head of the BOD is normally called–
a)CEO
b)President
c) Chairman
d) Managing Director

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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

View 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.

View 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

View 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”

View 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

View 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

View 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

View 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

View Answer

Ans: b) Appropriate monitoring of compliance and performance