· At least 5% of the average net profits made during the two immediately preceding financial

years

26. Which of the following statements are supported by Carol Gilligan 's Theory of moral
development?

· An action path should be designed in such a way that there would be no adverse
consequence on anybody and should befree from harming someone or causing problem to
others.
· Moral concepts should not be confined to blind abidance to abstract rights and rules but
should be based on a better affinity towards ways of living namely the finer elements of
values of life that can keep people happy.
· Moral thoughts should be more contextualized to the realities of life with due emphasis on
identifying solutions to situations even if they are dilemmatic in nature.
· Development of human psychology and moral thoughts would generally be centered on
rules, regulations and abstract principles.

27. Ethics is also known as code of

· Practices
· Conduct
· Professionals
· Wisdom

28. A corporate is required to publish exhibiting its sustainability plan and development in:

· Both of the above

· Business Responsibility (BR) Report
· Corporate Social Responsibility (CSR) Report
· None of the above

29. The age limit and tenure of directors in PSUs and PSBs are governed by the:

· Corporate Affairs
· Labour, Employment and Training
· Department of Public Enterprises
· Human Resources Development

30. Which of the following statements is correct?

· Ina unitary board system, the activities and processes of governance and management are
overlapping.
· Ina two-tier board system, the activities and processes of governance and management are
overlapping.
· Ina unitary board system, the activities and processes of governance and management are
compartmentalized.
· Ina two-tier board system, the activities and processes of governance and management are
semi-dependent.
Assignment-1

1. There are plenty of benefits of inclusion of independent director in a family board. Find the odd statement.
· An outside/independent director can support the necessary reorganization and help to moderate its
impact on family members.
· He can refrain himself from getting involved either in family problems or in day-to-day company
affairs.
· He can counsel against nepotism on the issue of succession.
· He can help to sort out the governance processes for the benefit of family directors.

2. Which one of the following one should understand be the description Environmental Ethics?

· Global awareness about surrounding environment.

· Good behaviour of mankind towards environment.
· Study of environment by environmentalists.
· An act by environmentalists.

3. The basic responsibilities of the directors in companies are

• The fiduciary duty of loyalty and good faith and obligation to honesty and integrity.
• Responsibilities to the shareholders and obligation to honesty and integrity.
• The fiduciary duty of loyalty and good faith and the duties of care and skill.
• Towards the shareholders and the duties of care and skill.

4. Code of corporate governance framed by

a) SEBI
b) CII
c) RBI
d) None of these
5. London stock exchange recommended that
a) the board should include a balance of Executive directors and non-executive directors including
independent directors
b) Each company should establish an audit committee
c) The board should include non-executive directors of sufficient calibre
d) The majority of the board members must be independent

6. In case of the appointment of a new director or reappointment of a director, the shareholders must be
provided with information
a) A brief resume of the director.
b) Nature of his expertise in specific functional areas.
c) Names of companies in which the person also holds the directorship and the membership of
committees of the board.
d) All of these.