Quiz Week 2

1. A compliance culture can be promoted through the establishment of a centralized:

- Chief compliance officer.

2. Conflicts of interest among corporate governance participants are referred to as an:

- Agency problem. 

3. Congress passed the Sarbanes-Oxley Act of 2002 to:

- Establish a new regime of investor protection

4. Investors should rely on which of the following to make rational, informed investment
decisions?
- Accurate financial statements and reports.

5. PCAOB stands for:

- Public Company Accounting Oversight Board. 

6. Public companies are required to comply with all of the following except:
- Best practices of leading competitors. 

7. Public companies are required to comply with

- Listing standards of their respective exchange.
- Federal and state laws and regulations.

8. Shareholders own corporations and the ______________ is elected to make business

decisions on behalf of shareholders.
- Board of directors. 

9. Suppliers and customers reward good corporate performance by:

- Actively and favorably doing business with the company. 

10. The elements of a multiple bottom line (MBL) approach are economic, social, ethical,
and:
- Environmental. 

11. The Federal Sentencing Guidelines require:

- Compliance and ethics training. 

12. The improvement of corporate governance and financial reporting by SOX should add the
following benefits except:
- Increased audit fees. 

13. The improvement of corporate governance and financial reporting by SOX should add the
following benefits:
- Improved investor confidence.
- Decreased cost of capital.
- Increased firm value.

14. The primary mission of a public company is to:

- Create sustainable and enduring corporate value. 

15. The primary mission of public companies is regarded as:

- Creating sustainable and enduring value. 

16. The primary stakeholders are:

- Shareholders. 

17. Which of the following are considered to be the second-tier stakeholders in the company?
- Lenders and creditors. 

18. Which of the following are not considered third-tier stakeholders?

- Creditors. 

19. Which of the following are considered third-tier stakeholders?

- Employees.
- Suppliers.
- Customers.

20. Which of the following is not crucial to the integrity and efficiency of capital markets and
economic growth?
- High stock prices. 

21. Which of the following is crucial to the integrity and efficiency of capital markets and
economic growth?
- Investor confidence.
- Sustainability and financial health of public companies.
- Public trust.

22. Which of the following would be an example of a corporate gatekeeper?

- Independent and competent external auditor.
- Independent and competent board of directors.
- Objective and competent legal counsel or financial advisor.
Quiz Week 3
1.A Bank is an external stakeholder?
- True 

2. A customer is an internal stakeholder?

- False 

3. A manager is an external stakeholder

- False

4. An employee is an internal stakeholder?

- True

5. An internal stakeholder is:

- Employee

6. As a stakeholder, what interest would customers have in a business?

- Payment Methods

7. As a stakeholder, what interest would the employees have in a business?

- Staff Pay

8. As a stakeholder, what interest would the employers have in a business?

- Increasing Profits

9. As a stakeholder, what interest would the local community have in a business?

- Expansion

10. As a stakeholder, what interest would the suppliers have in a business?

- Business Relationships

11. Customers are interested in a business because:

- They want the business to make the products they want at good prices 

12. Jacobs decide to employ a new manager who would be interested in this decision?
- Employees, managers and owner 

13. Jacobs decide to increase their prices, what stakeholders have an influence on this
decision?
- Customers, managers

14. Owners will be interested in:

- Wanting the business to grow and make profits 

15. Possible conflicts between a customer and an employee could include....

- one side wanting longer opening hours for the winter period while the other wanting to go
home earlier to see their families. 

16. Possible conflicts between a customer and shareholders could include....

- one side wanting more discounts while the other wants to reduce them to maximise profit
margins. 

17. Possible conflicts between employees and an employer could include....

- one side wanting more training and pay while the other wanting to reduce costs. 

18. Possible conflicts between the government and an shareholders could include....
- one side wanting more tax while the other side wanting to reduce costs. 

19. The Government is interested in a business because:

- They want the business to comply with the law and pay taxes 

20. True or False: a consequence of a business not listening to their stakeholders is employees
could go on strike.
- True

21. True or False: financiers are a stakeholder in a business.

- True

22. True or False: stakeholders can be internal and external.

- True

23. What are stakeholders?

- Anybody who takes an interest in a business
- Any individual or organisation that is affected by activities of a Business. 

24. What influence does a manager have on the business?

- They may make decisions which affect the business 

25. What influence may Suppliers have on the business?

- They may increase their prices 

26. What influence would customers have on a business?

- They may stop purchasing and make poor reviews. 

27. What influence would the local community have on the business?
- They may petition the business. 

28. What is an internal stakeholder?

-  A stakeholder from inside the company. 

29. Which of the following is NOT an example of a stakeholder?

- Children 

30. Which of the following is an example of a stakeholder?

- Shareholders
- Local Community 
- Customers
Quiz Week 3
1. A board member who has direct financial ties to the firm is called what kind of board
member:
- Inside

2. A good corporate citizen is increasingly seen as one that is non-discriminatory, non-

exploitative and responsible with regard to environmental and human rights issues. Above
statement refers to the element of corporate governance.
- Business ethics and social responsibility 

3. Corporate governance can be defined as:

- The corporate compliance system used by the firm

4. Corporate governance can involve merging the roles of ______ and the ______.
- CEO / Chairman of the Board

5. Effective corporate governance included all of the following EXCEPT:

- Residual Income 

6. Financial information disclosed.Non-financial information disclosed. Financial prepared

according to International Financial Reporting Standards (IFRS). The point above suitable for
need of good governance of
- Transparent disclosure 

7. One advantage of merging positions in a corporate governance is:

- Board had the luxury of hearing from someone who is in touch with the inner workings of
the organization.

8. Successful business leaders not only realize the importance of giving back to society, but
they also consider the social and environmental responsibilities of their business with the
ultimate goal of sustainable global development. These statements refers to
- Elements of corporate governance 

9. Traditionally, the board of directors is responsible for representing the interests of:
- Stockholders

10. What is the difference between shareholders and stakeholders?

- A shareholder owns part of a public company through shares of stock. A stakeholder is
anybody who can affect or is affected by an organisation 

11. Which board of directors committee is responsible forseeing the ...

- Auditing

12. Which is BEST definition for Corporate Governance?

- A system of law and sound approaches by which corporations are directed and controlled
focusing on the internal and external corporate structures with the intention of monitoring the
actions of management and directors and thereby mitigating agency risks which may stem
from the misdeeds of corporate officers

13. Which is BEST explanation for administrative structures?

- The structure of a corporation’s governance determines the efficiency and accuracy of the
flow information through and from a corporation.

14. Which is NOT TRUE about the needs for corporate governance?
- To analyze of an organization's operations and maintenance of systems of internal controls
can help detect and prevent various forms of fraud and other accounting irregularities.

15. Who runs the company operations for large companies?

- Board of Directors