McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
| 1. |
The framework for establishing good corporate governance and accountability was originally setup by |
| A. | Nestle committee |
| B. | Rowntree committee |
| C. | Cadbury committee |
| D. | Thornton committee |
| Answer» B. Rowntree committee | |
| 2. |
Which of the following is not one of the underlying principles of the corporate governance combined code of practice? |
| A. | Accountability |
| B. | Openness |
| C. | Acceptability |
| D. | Integrity |
| Answer» C. Acceptability | |
| 3. |
External audit of the accounts of a limited company is required? |
| A. | Because it is demanded by the company’s bankers |
| B. | By the companies act 2006 |
| C. | At the discretion of the shareholders |
| D. | To detect fraud |
| Answer» B. By the companies act 2006 | |
| 4. |
Directors responsibilities are unlikely to include |
| A. | a duty to keep proper accounting records |
| B. | a fiduciary duty |
| C. | a duty to propose high dividends for shareholders |
| D. | a duty of care |
| Answer» C. a duty to propose high dividends for shareholders | |
| 5. |
A company may become insolvent if it |
| A. | makes a loss |
| B. | has negative working capital |
| C. | cannot meet its budgeted level of profit |
| D. | cannot pay creditors in full after realisation of its assets |
| Answer» D. cannot pay creditors in full after realisation of its assets | |
| 6. |
Fraudulent trading may be |
| A. | a criminal offence committed only by directors of a limited company |
| B. | a civil and a criminal offence committed by an employee |
| C. | a civil and a criminal offence committed only by directors of a limited company |
| D. | a civil offence committed by an employee |
| Answer» B. a civil and a criminal offence committed by an employee | |
| 7. |
A director of a limited company may not be liable for wrongful trading if he or she |
| A. | increased the valuation of its inventories to cover any potential shortfall |
| B. | brought in some expected sales from next year in to the current year |
| C. | took every step to minimise the potential loss to creditors |
| D. | introduce into the balance sheet an asset based on a valuation of its brands sufficient to meet |
| Answer» C. took every step to minimise the potential loss to creditors | |
| 8. |
Disqualification of directors may result from breaches under the |
| A. | Health and Safety Act |
| B. | Financial Services Act |
| C. | Sale of Goods Act |
| D. | Companies Act |
| Answer» D. Companies Act | |
| 9. |
According to clause 49 on independent directors. What should be minimum age of independent director. |
| A. | 21 |
| B. | 22 |
| C. | 23 |
| D. | 24 |
| Answer» A. 21 | |
| 10. |
who formed the ICGN? |
| A. | European government |
| B. | US share holders |
| C. | Pension funds |
| D. | Stock markets |
| Answer» C. Pension funds | |
| 11. |
A company cannot issue redeemable preference shares for a period exceeding |
| A. | 5 year |
| B. | 10 years |
| C. | 15 years |
| D. | 20 years |
| Answer» D. 20 years | |
| 12. |
which one is the dimension(approach) of corporate social responsibility? |
| A. | Corporate philanthropy |
| B. | Stake holders priorities and sustainable development |
| C. | Ethical business |
| D. | All of the above |
| Answer» D. All of the above | |
| 13. |
According to clause 49 on independent directors. What can be maximum tenure of independent director. |
| A. | 2 terms of 5 years each |
| B. | 3 terms of 5 years each |
| C. | 2 terms of 10 years each |
| D. | 3 terms of 4 years each |
| Answer» A. 2 terms of 5 years each | |
| 14. |
According to section 179 which one of the following is a power of director? |
| A. | To buy back its shares |
| B. | Sell lease or otherwise dispose of the undertakings of the company |
| C. | Remit or give time for the repayment of any debt due by a director |
| D. | Making political contributions exceeding specified limits |
| Answer» A. To buy back its shares | |
| 15. |
What is kieretsu |
| A. | Pension fund |
| B. | Corporate group |
| C. | Stock exchange |
| D. | Futures Market |
| Answer» B. Corporate group | |
| 16. |
The concept of Corporate Social Responsibility originated in which time period? |
| A. | 1920’s and 1930’ |
| B. | 19th Century |
| C. | 1980’s and 1990’s |
| D. | 1960’s and 1970’s |
| Answer» D. 1960’s and 1970’s | |
| 17. |
Worldwide, about percent of businesses in the private sector are small or medium sized. |
| A. | 80 |
| B. | 85 |
| C. | 90 |
| D. | 99 |
| Answer» C. 90 | |
| 18. |
The generally accepted definition of a small business is one with or fewer employees. |
| A. | 10 |
| B. | 20 |
| C. | 25 |
| D. | 50 |
| Answer» D. 50 | |
| 19. |
The generally accepted definition of a medium business is one with or fewer employees. |
| A. | 50 |
| B. | 100 |
| C. | 200 |
| D. | 250 |
| Answer» D. 250 | |
| 20. |
In the United States, small or medium sized businesses provide over percent of total employment. |
| A. | 25 |
| B. | 40 |
| C. | 50 |
| D. | 75 |
| Answer» C. 50 | |
| 21. |
Owners of stock in a corporation are only liable for . |
| A. | the amount they have invested in the company’s stock |
| B. | their personal assets |
| C. | the amount they have invested in the company’s stock and their personal assets |
| D. | none of the above. |
| Answer» D. none of the above. | |
| 22. |
A of an issue consists of weighing and balancing all of the competing demands on a firm by each of those who have a claim on it. |
| A. | stakeholder analysi |
| B. | board of directors analysis |
| C. | corporation analysis |
| D. | management analysis |
| Answer» A. stakeholder analysi | |
| 23. |
The that corporations must meet is “do no harm”. |
| A. | moral obligation |
| B. | moral minimum |
| C. | moral requirement |
| D. | moral duty |
| Answer» B. moral minimum | |
| 24. |
In large corporations, the is/are the legal overseers of management. |
| A. | CEO |
| B. | shareholders |
| C. | board members |
| D. | none of the above |
| Answer» C. board members | |
| 25. |
The position is that a corporation can and should be evaluated not only in terms of its financial bottom line, but also in terms of its environmental bottom line and its social/ethical bottom line. |
| A. | Bottom line |
| B. | Double Bottom line |
| C. | Triple Bottom line |
| D. | Final line |
| Answer» B. Double Bottom line | |
| 26. |
Triple Bottom Line reporting refers to: |
| A. | using a low, medium and high estimates for profitability forecasts. |
| B. | measuring the impact of the firm on stockholders, customers and employees. |
| C. | measuring the social, environmental, and financial performance of the firm. |
| D. | measuring the impact of local, state, and federal governments on the firm. |
| Answer» C. measuring the social, environmental, and financial performance of the firm. | |
| 27. |
Corporate governance can be defined as: |
| A. | the system used by firms to control the actions of their employees. |
| B. | the election process used to vote in a new Board of Director. |
| C. | the corporate compliance system used by the firm. |
| D. | the system used by firms to identify who the critical stakeholders are for the firm. |
| Answer» A. the system used by firms to control the actions of their employees. | |
| 28. |
The system that is used by firms to control and direct their operations and the operations of their employees is called: |
| A. | Corporate Compliance. |
| B. | Corporate Governance. |
| C. | Corporate Control. |
| D. | Corporate Directive. |
| Answer» B. Corporate Governance. | |
| 29. |
Which board of directors committee is responsible for the guidelines on how the board of directors should operate. |
| A. | Operating |
| B. | Corporate governance |
| C. | Corporate compliance |
| D. | Guiding |
| Answer» B. Corporate governance | |
| 30. |
The Sarbanes-Oxley Act was a direct response to which ethics scandals? |
| A. | Tyco |
| B. | WorldCom |
| C. | Enron |
| D. | None of the above. |
| Answer» C. Enron | |
| 31. |
What is the name of the process in which an employee informs another responsible employee in the company about potentially unethical behavior? |
| A. | Whistle-blowing |
| B. | Purging and releasing |
| C. | Identification |
| D. | Information transfer |
| Answer» A. Whistle-blowing | |
| 32. |
There are conditions that, if satisfied, change the moral status of whistle blowing. |
| A. | three |
| B. | four |
| C. | five |
| D. | six |
| Answer» C. five | |
| 33. |
An example of a whistle blower whose actions were a form of internal government whistle blowing is: |
| A. | Sherron Watkins. |
| B. | Coleen Rowley. |
| C. | Cynthia Cooper. |
| D. | Lee Iacocca. |
| Answer» B. Coleen Rowley. | |
| 34. |
One whistle blower the text mentions is Cynthia Cooper who was the vice president of internal audit at . |
| A. | Enron |
| B. | WorldCom |
| C. | Tyco |
| D. | none of the above |
| Answer» B. WorldCom | |
| 35. |
One classic example of whistle-blowing is the: |
| A. | Ford Pinto case. |
| B. | Lincoln case. |
| C. | Toyota case. |
| D. | none of the above. |
| Answer» A. Ford Pinto case. | |
| 36. |
A whistle-blower: |
| A. | doesn’t have to be a past or present member of the organization. |
| B. | doesn’t have to report activity that is illegal, immoral, or harmful. |
| C. | is any employer who spreads gossip. |
| D. | far from being disloyal, may be acting in the best interest of the organization. |
| Answer» C. is any employer who spreads gossip. | |
| 37. |
The Sarbanes-Oxley Act: |
| A. | makes it easier to fire whistle blowers. |
| B. | reduces the law’s protection of employees who disclose securities fraud. |
| C. | makes it illegal for executives to retaliate against employees who report possible violations of federal law. |
| D. | provides penalties for blowing the whistle illegitimately or maliciously. |
| Answer» D. provides penalties for blowing the whistle illegitimately or maliciously. | |
| 38. |
Inside traders ordinarily defend their actions by claiming that they don’t injure: |
| A. | their boss. |
| B. | their family. |
| C. | the government. |
| D. | any one. |
| Answer» D. any one. | |
| 39. |
Shareholders have the right to know all except: |
| A. | Information on the management of the corporation |
| B. | Trade secrets |
| C. | The companies financial position |
| D. | The companies general plans for the future. |
| Answer» B. Trade secrets | |
| 40. |
Which act provides sweeping new legal protection for employees who report possible securities fraud making it unlawful for companies to “discharge, demote, suspend, threaten, harass, or in any other manner discriminate against” them? |
| A. | Sarbanes-Oxley Act of 2002 |
| B. | Foreign Corruption Act |
| C. | Economic Espionage Act |
| D. | U.S. vs. O’Hagan |
| Answer» A. Sarbanes-Oxley Act of 2002 | |
| 41. |
What is meant by the phrase CSR? |
| A. | Corporate Social Responsibility |
| B. | Company Social Responsibility |
| C. | Corporate Society Responsibility |
| D. | Company Society Responsibility |
| Answer» A. Corporate Social Responsibility | |
| 42. |
What is meant by the phrase 'teleological ethics'? |
| A. | Is used to judge is an action is right, fair and honest. |
| B. | An action can only be judged by its consequences |
| C. | Developing the individual personal characteristics |
| D. | The key purpose of ethics is to increase freedom. |
| Answer» B. An action can only be judged by its consequences | |
| 43. |
What, according to Adam Smith, is the best way to promote collective interest? |
| A. | Through government making decisions about what is in the public interest. |
| B. | Through everyone working together to support each other. |
| C. | Through everyone working on their own self interest |
| D. | Through individuals forgoing their personal interest for the good of the collective. |
| Answer» C. Through everyone working on their own self interest | |
| 44. |
Why, according to stakeholder theory, is it in companies' best interests to pay attention to their stakeholders? |
| A. | If firms only act in their own self-interest employees may feel exploited. |
| B. | If firms only act in their own self-interest government might put more regulation on them. |
| C. | If firms only act in their own self-interest customers might not like the image that the company portray. |
| D. | If firms only act in their own self-interest and inflict harm on stakeholders then society might withdraw its support. |
| Answer» D. If firms only act in their own self-interest and inflict harm on stakeholders then society might withdraw its support. | |
| 45. |
What is the enlightened self-interest model of CSR? |
| A. | That it is in an organization's own best interest to put itself first rather than its ethics. |
| B. | That it is in an organization's best interest to consider what a shareholder would want. |
| C. | That it is in an organization's own best interest to act in an ethical way. |
| D. | That it is in an organization's own best interest to follow the legislation and abide by the law. |
| Answer» C. That it is in an organization's own best interest to act in an ethical way. | |
| 46. |
What is green washing? |
| A. | Transforming products to be more ethical. |
| B. | Making a product appear more ethical that it really is. |
| C. | Converting the company to green production methods. |
| D. | Convincing customers to buy ethically. |
| Answer» B. Making a product appear more ethical that it really is. | |
| 47. |
What is triple bottom line? |
| A. | An accounting tool that looks at the impact on people, planet and profits. |
| B. | A management strategy which states all the attention should be on profits. |
| C. | An accounting tool that looks at cost, profit and loss. |
| D. | A management strategy which focuses on corporate social responsibility. |
| Answer» A. An accounting tool that looks at the impact on people, planet and profits. | |
| 48. |
A sets out the purpose and general direction for the organisation? |
| A. | Mission statement |
| B. | Purpose statement |
| C. | Vision |
| D. | Profit statement |
| Answer» A. Mission statement | |
| 49. |
Which of the following would most effectively act as the primary objective of a business organisation? |
| A. | To make a profit |
| B. | To procure resources |
| C. | To communicate with shareholders |
| D. | To mediate between the organisation and the environment |
| Answer» A. To make a profit | |
| 50. |
What is the purpose of a balanced scorecard? |
| A. | To measure contribution of people to business growth |
| B. | To combine a range of qualitative and quantitative indicators of performance |
| C. | To relate business performance to customer satisfaction |
| D. | All of the above |
| Answer» B. To combine a range of qualitative and quantitative indicators of performance | |
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