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Corporate Governance MCQ

Mba (Savitribai Phule Pune University)

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310-CORPORATE GOVERNANCE MCQ

1) Which of the following is not one the under lining constable of the corporate governance
combined code of practice.

a. Openness

b. Accountability

c. Integrity

d. Acceptability

2) The framework for establishing good corporate governance and accountability was
originally set up by the

A. nestle committee

B. Rowntree committee

C. Thornton committee

D. Cadbury committee

3) corporate governance is a form of

A. external regulation

B. self regulation

C. government control

D. charitable action

4) Which of the following is/are feature of corporate governance

A. Non-universality

B. Accountability

C. Ambiguity

D. None of the above

5) Corporate governance is a ____ approach

A. Top-down

B. Bottom-up

C. Hybrid

D. Scientific

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6) Under the ____, both internal and external corporate governance mechanism intended to
induce managerial actions that maximize profit and shareholder value

A. Shareholder theory

B. Agency theory

C. Stakeholder theory

D. Corporate governance theory

7) N. R. Narayan Murthy committee is related to:

A. HR issues of public sector banks

B. Growth of IT sector in India

C. Improving corporate governance practices

D. On improvement of customer services in banks

8) The Narayan Murthy committee submitted its report on 2003 and it's recommendations
were

A. Whistle-blower protection

B. Audit Committee

C. Related party transaction

D. All of the above

9) The corporate governance structure of a company reflects the individual companies

A. Cultural & economic system

B. Legal & business system

C. Social & regulatory system

D. All of the above

10) Which one among the following is not correct J. J. Irani Committee recommendation on
company law (2005) :

A. 2/5 of the board of a listed company should comprise of independent directors

B. Introduce the concept of one person company (OPC)

C. Allow Corporation’s to allow their affairs

D. Disclose proper and accurate compilation of financial information of a corporation.

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11) CEO stands for

A. Chief Executive Officer

B. Chief External Officer

C. Chief Environmental Officer

D. Current Executive Officer

12) Which of the following is a true statement related to corporate governance?

a. It refers to the manner in which an entity is managed and governed.
b. It excludes entity management.
c. It requires entity's to have a board of directors.
d. It is a uniquely distinct concept from those charged with governance.
13) Corporate governance can be defined as _____.
A. the economic, legal, and institutional framework in which corporate control and cash
flow rights are distributed among shareholders, managers and other stakeholders of the
company.
B. the general framework in which company management is selected and monitored.
C. the rules and regulations adopted by boards of directors specifying how to manage
companies.
D. the government-imposed rules and regulations affecting corporate management.
14) Which one does not fall under the type of directors?
A. non executive directors
B. alternate director
C. Shadow directors
D. Frontline director
15) Which is the type of leadership style
A. De facto
B. Autocratic
C. Democratic
D. Dynamic
16) What does SEC stand for
A. Securities and exchange Commission
B. Security and exchange Corporation
C. Security and exchangeable Corporation
D. Security and executive Commission

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17) Which one are not the responsibilities of CEO

A. monitoring community and Public Relations
B. managing tax and regulatory obligations
C. budgeting
D. making financial accounts
18) Section 173 of Companies Act___ deals with meetings of the board
A. 2013
B. 2015
C. 2011
D. 2009
19) Which among the following is the role of board of directors
A. manage inventory
B. understanding human behaviour
C. budgeting
D. Overseas strategy implementation and performance
20) Which one is not the corporate board committee A.audit committee
B. compliance committee
C. stakeholder’s relationship committee
D. legislative committee
21) OPC stands for
A. One person company
B. One Public Company
C. Only Public Company
D. One Private Company
22) Persons who take the procedural steps to set up a company and who make business
preparations for the company are known as
A. directors
B. shareholders
C. registrars
D. promoters
23) Which one of the following is not a right of shareholder?
A. to receive a dividend declared by the company
B. to attend and vote a meeting
C. to receive the company's account

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D. to manage company affair

24) Decisions passed by shareholders are known as
A. Resolutions
B. provisions
C. articles
D. memorandums
25) The simplest form of business ownership is a
A. Proprietorship
B. Partnership
C. Corporation
D. Cooperative
26) Which of the following best defines the term stakeholders
A. Anyone which shares in a company
B. Anyone with an interest in an organisation
C. Anyone who owns a business
D. None of the above
27) What should organisation seek to do with stakeholders who have high interest and high
power
A. Do nothing
B. Invest minimal efforts
C. Invest maximum efforts
D. Keep informed
28) The primary stakeholders are
A. Customers
B. Suppliers
C. Shareholders
D. Creditors
29) When was SEBI constituted?

A. April 1988

B. March 1982

C. July 1992

D. December 1974

30) Who is the current chairman of the SEBI

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A. U. K. Sinha

B. Ajay Tyagi

C. T. S. Vijayan

D. K. Mathur

31) As per clause 49 of the listing agreement no person can be an independent director of
more than listed companies. If any person is serving as a whole I am director in in any listed
company then he/she shall not be the independent director of more than listed companies

A. Seven, five

B. Seven, three

C. Five, three

D. Five, two

32) SEBI code of corporate governance provides from the constitutions of shareholders
committee under the chairmanship of:

A. board of directors

B. director

C. non executive director

D. manager

33) RE represents:

A. Risk expenses

B. Related expenses

C. Risk exposure

D. Risk evaluation

34) SEBI stands for:

A. Securities and e-commerce Board of India

B. Stock exchange Board of India

C. Securities and exchange Board of India

D. None of the above

35) All of the following are components of internal control except

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A. Management reports

B. Monitoring

C. The information system

D. Risk assessment process

36) Risk management includes all of the following processes except:

A. Risk quantification

B. Risk identification

C. Risk response development

D. Risk response control

37) What is risk

A. Negative consequence that could occur

B. Negative consequences that will occur

C. Negative consequences that must occur

D. Negative consequences that shall occur

38) Internal controls are grouped into the following categories

A. Efficient operations, financial analysis and compliance

B. Effective operations, financial reporting and compliance

C. Production and operations, financial reporting and management reporting

D.Efficient operations, financial analysis, and management reporting

39) Kingfisher Airlines was established in

A. 2003

B. 2010

C. 2008

D. 2002

40) Punjab National Bank was incorporated bank in the year_______ in Lahore, undivided
India

A. 1982

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B. 1880

C. 1895

D. 1870

41) RPG Ricoh Ltd was incorporated on

A. 31st December 1975

B. 5th June 1982

C. 19th March 1880

D. 22nd October 1993

42) PNB scam was done by

A. Nirav Modi

B. Vijay Malya

C. Satyam

D. Harshad Mehta

43) Chanda Kochhar took over as ICICI bank chief in

A. 2009

B. 2005

C. 2003

D. 2010

44) By the late ____________ Infosys Technologies Limited (Infosys) has clearly emerged
one of the best managed companies in India.

A. 1920s

B. 1990s

C. 1950s

D. 1975s

45) Kingfisher airlines is owned by the Bengaluru based

A. United Breweries Group

B. Quick Jet

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C. Menzies Aviation Bobba

D. Star Air

46) Satyam Computers Services Limited was the first India company to publish its financial
statements by following______

A. Indian Accounting Standards (AS 32)

B. Interim Financial Reporting

C. International Financial Reporting Standards

D. Indian Accounting Standards ( AS 36)

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