1. The framework for establishing good corporate governance and accountability was originally
setup by
Correct : B. Rowntree committee
2. Which of the following is not one of the underlying principles of the corporate governance
combined code of practice?
Correct : C. Acceptability
3. External audit of the accounts of a limited company is required?
Correct : B. By the companies act 2006
4. Directors responsibilities are unlikely to include
Correct : C. a duty to propose high dividends for shareholders
5. A company may become insolvent if it
Correct : D. cannot pay creditors in full after realisation of its assets
6. Fraudulent trading may be
Correct : 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
Correct : C. took every step to minimise the potential loss to creditors
8. Disqualification of directors may result from breaches under the
Correct : D. Companies Act
9. According to clause 49 on independent directors. What should be minimum age of independent
director.
Correct : A. 21
10. who formed the ICGN?
Correct : C. Pension funds
11. A company cannot issue redeemable preference shares for a period exceeding
Correct : D. 20 years
12. which one is the dimension(approach) of corporate social responsibility?
Correct : D. All of the above
13. According to clause 49 on independent directors. What can be maximum tenure of
independent director.
Correct : A. 2 terms of 5 years each
14. According to section 179 which one of the following is a power of director?
Correct : A. To buy back its shares
15. What is kieretsu
Correct : B. Corporate group
16. The concept of Corporate Social Responsibility originated in which time period?
Correct : D. 1960’s and 1970’s
17. Worldwide, about percent of businesses in the private sector are small or
medium sized.
Correct : C. 90
18. The generally accepted definition of a small business is one with or fewer
employees.
Correct : D. 50
19. The generally accepted definition of a medium business is one with or fewer
employees.
Correct : D. 250
20. In the United States, small or medium sized businesses provide over percent of
total employment.
Correct : C. 50
21. Owners of stock in a corporation are only liable for .
Correct : 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.
Correct : A. stakeholder analysi
23. The that corporations must meet is “do no harm”.
Correct : B. moral minimum
24. In large corporations, the is/are the legal overseers of management.
Correct : 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.
Correct : B. Double Bottom line
26. Triple Bottom Line reporting refers to:
Correct : C. measuring the social, environmental, and financial performance of the firm.
27. Corporate governance can be defined as:
Correct : 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:
Correct : B. Corporate Governance.
29. Which board of directors committee is responsible for the guidelines on how the board of
directors should operate.
Correct : B. Corporate governance
30. The Sarbanes-Oxley Act was a direct response to which ethics scandals?
Correct : 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?
Correct : A. Whistle-blowing
32. There are conditions that, if satisfied, change the moral status of whistle
blowing.
Correct : C. five
33. An example of a whistle blower whose actions were a form of internal government whistle
blowing is:
Correct : B. Coleen Rowley.
34. One whistle blower the text mentions is Cynthia Cooper who was the vice president of
internal audit at .
Correct : B. WorldCom
35. One classic example of whistle-blowing is the:
Correct : A. Ford Pinto case.
36. A whistle-blower:
Correct : C. is any employer who spreads gossip.
37. The Sarbanes-Oxley Act:
Correct : D. provides penalties for blowing the whistle illegitimately or maliciously.
38. Inside traders ordinarily defend their actions by claiming that they don’t injure:
Correct : D. any one.
39. Shareholders have the right to know all except:
Correct : 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?
Correct : A. Sarbanes-Oxley Act of 2002
41. What is meant by the phrase CSR?
Correct : A. Corporate Social Responsibility
42. What is meant by the phrase 'teleological ethics'?
Correct : B. An action can only be judged by its consequences
43. What, according to Adam Smith, is the best way to promote collective interest?
Correct : 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?
Correct : 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?
Correct : C. That it is in an organization's own best interest to act in an ethical way.
46. What is green washing?
Correct : B. Making a product appear more ethical that it really is.
47. What is triple bottom line?
Correct : 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?
Correct : A. Mission statement
49. Which of the following would most effectively act as the primary objective of a business
organisation?
Correct : A. To make a profit
50. What is the purpose of a balanced scorecard?
Correct : B. To combine a range of qualitative and quantitative indicators of performance
51. Which of the following does the term Corporate Social Responsibility relate to?
Correct : D. All of the above
52. Who are organisational stakeholders?
Correct : D. All of the above
53. What is Ethics to do with?
Correct : C. Right and wrong
54. Which of the following is an example of an area where business ethics apply?
Correct : A. Conduct of international operation
55. Which legislation relates to the concept of business ethics?
Correct : A. Freedom of Information Act
56. The four types of social responsibility include:
Correct : A. legal, philanthropic, economic, and ethical
57. The dimension of social responsibility refers to a business's societal contribution of
time, money, and other resources.
Correct : B. Philanthropic
58. Stakeholders are considered more important to an organization when:
Correct : A. they can make use of their power on the organization
59. A is a problem, situation, or opportunity requiring an individual, group, or
organization to choose among several actions that must be evaluated as right or wrong.
Correct : B. ethical issue
60. Which moral philosophy seeks the greatest good for the greatest number of people?
Correct : B. Utilitarianism
61. What type of justice exists if employees are being open, honest, and truthful in their
communications at work?
Correct : D. Interactional
62. A high-commitment approach to environmental issues may include all of the following except:
Correct : C. green-washing
63. Better access to certain markets, differentiation of products, and the sale of pollution-control
technology are ways in which better environmental performance can:
Correct : A. increase revenue
64. Most companies begin the process of establishing organizational ethics programs by
developing:
Correct : B. codes of conduct.
65. When a firm charges different prices to different groups of customers, it may be accused of:
Correct : A. cultural relativism
66. The social economy partnership philosophy emphasizes:
Correct : A. cooperation and assistance.
67. Which of the following is not a driver of responsible competitiveness?
Correct : B. Development drivers
68. Which of the following is a problem presented by ethics audits?
Correct : C. Selecting auditors may be difficult.
69. The first step in the auditing process should be to secure the commitment of:
Correct : B. top executives and directors.
70. Codes of conduct and codes of ethics
Correct : A. are formal statements that describe what an organization expects of its employees.
71. Which of the following is NOT one of the primary elements of a strong organizational
compliance program?
Correct : C. Significant financial expenditures
72. are standards of behaviour that groups expect of their members.
Correct : C. Group norms.
73. In a organization, decision making is delegated as far down the chain of
command as possible.
Correct : D. Centralized
74. Managerial ethics can be characterised by all of the following levels except
Correct : C. demoral management
75. External audit of the accounts of a limited company is required
Correct : B. by the Companies Act 2013
76. Directors’ responsibilities are unlikely to include.
Correct : C. a duty to propose high dividends for shareholders
77. A company may become insolvent if it
Correct : D. cannot pay creditors in full after realisation of its assets
78. A director of a limited company may not be liable for wrongful trading if he or she
Correct : A. took every step to minimise the potential loss to creditors
79. Fraudulent trading may be
Correct : D. a civil and a criminal offence committed by any employee
80. The OECD argues that corporate governance problems arise because:
Correct : A. Ownership and control is separated
81. An organization that is owned by shareholders but managed by agents on their behalf is
conventionally known as the modern:
Correct : B. Corporation
82. The modern corporation has four characteristics. These are limited liability, legal personality,
centralized management and:
Correct : D. Transferability
83. What makes a corporation distinct from a partnership?
Correct : A. If the members of a corporation die, the corporation remains in existence providing it has capital
84. The term 'asymmetry of information' means information in a corporation is:
Correct : C. Not equally transparent to all stakeholders
85. The view that sees profit maximization as the main objective is known as:
Correct : C. Stakeholder theory
86. Where an organization takes into account the effect its strategic decisions have on society, this
is known as:
Correct : D. Corporate social responsibility
87. Which intervention resulted from the Enron scandal?
Correct : B. The Sarbannes-Oxley Act
88. Periodic ethics audits
Correct : B. A method of fostering ethics
89. Political intrusion into business
Correct : A. May be desirable in some circumstances
90. Quantification in ethics may be done by
Correct : C. Both A and B
91. The approach to formal corporate ethics initiatives is proactive and inspirational.
Correct : D. Values
92. The approach to formal corporate ethics initiatives focuses on meeting required behaviour norms or obeying the letter of the law
Correct : B. Compliance
93. Which of the following is associated with the classical view of social responsibility?
Correct : C. stockholder financial return
94. How many stages are in the model of an organization social responsibility progression?
Correct : B. 4
95. The belief that a firm pursuit of social goals would give them too much power is known as what argument in opposition to a firm being socially responsible?
Correct : D. too much power
96. Social responsiveness refers to the capacity of a firm to adapt to changing .
Correct : A. societal condition
97. Applying social criteria to an investment decision refers to .
Correct : D. social screening
98. Which of the following is a basic definition of ethics?
Correct : C. rules or principles that define right and wrong conduct
99. Global organizations must their ethical guidelines so that employees know what
is expected of them while working in a foreign location
Correct : A. Clarify
100. is a document that outlines principles for doing business globally in the
areas of human rights, labour, the environment, and anticorruption.