Corporate governance professional

Examination Paper of Corporate Governance Professional
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IIBM Institute of Business Management
Subject Code-C103 Examination Paper MM.100
Corporate Governance Professional
Guidelines for paper
 Total No. of Questions is 100.
 The minimum passing marks is 40%.
 Each Question carries 1 mark.
 Answer all the Questions.
Multiple Choices: Total Marks: 100
1. Corporate Governance is-
a) About ethical conduct in business
b) Direct or indirect concerns in the organization
c) A manufacturing system
d) None of the above
2. The term corporate governance is derived from the-
a) Greek word
b) English word
c) French word
d) Latin word
3. The definition “Corporate Governance is the system by which business directed and controlled” is
given by-
a) SEBI committee
b) OECD committee
c) Cadbury committee
d) All of the above
4. Internal control is implemented by the-
a) Board of directors
b) Audit committee
c) Management
d) All of the above
5. OECD stands for__________________
6. Which of the following have the power to hire fire and compensate the top management?

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b) Audit committee
c) Shareholders
d) Management
7. CII stands for ____________________
8. The managers are expected to act in the interest of-
a) Audit committee
b) Stakeholders
c) Employees
d) Customers
9. To endorse the organization strategy, develop directional policy, appoint, supervise and remunerate
senior executives and to ensure accountability of the organization to its owners and authorities is the
responsibility of
a) CEO
b) Manager
c) Top management
d) Board of directors
10. SEBI stands for_________________
11. The role of corporate governance is-
a) To ensure the efficient use of resources
b) It increases the shareholders value
c) Reduce the procurement and inventory cost
d) All of the above
12. Which of the following is not the issue of corporate governance?
a) Internal control
b) Compensation of CEO and other directors
c) Management of risk
d) Rights of corporation
13. The annual report should not include-
a) How decision are taken by the board
b) The name of the chairman, CEO and other directors
c) Ability to hire management
d) The number of meeting
14. _____________________ is equal to the market price of his holding in shares.
a) Stakeholders wealth
b) Ethical conduct
c) Shareholder’s wealth

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d) None of these
15. The key element of good corporate governance principle include-
a) Honesty
b) Mutual respect
c) Performance orientation
d) All of the above
16. SOX stands for_____________________
17. The commonly accepted principle of corporate governance are-
a) Protection of shareholders right
b) Role and responsibilities of board
c) Interest of other stakeholders
d) All of the above
18. CII developed code of corporate governance in_____________________
a) 1997
b) 1996
c) 1994
d) 1878
19. The property right is views simply as ____________________
a) Planning right
b) Control right
c) Both a&b
d) None
20. In which type of model the supervisory board is elected by shareholders and labor unions
a) Japanese model
b) Anglo American model
c) German model
d) The Indian perspective
21. Which of the following come under the five principles of ethical power for organization?
a) Purpose
b) Pride
c) Patience
d) All of the above
22. Which of the following are the theories of corporate governance?
a) Shareholders theory vs. stakeholders theory
b) Stewardship theory
c) Property right theory
d) All of the above

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23. The stewardship theory is-
a) Control oriented
b) Involvement oriented
c) Both a&b
d) None of these
24. ____________________ include government nominees and representatives of financial institutions
b) Creditors, suppliers
c) Nominee directors
d) Chief executive officer
25. The ____________________ oversees internal control and disclosure controls and procedures for
financial reporting.
a) Nominating committee
b) Audit committee
c) Board committee
d) Higgs committee
26. MDAR stands for_______________
27. Liaison committee designed to make a link between two groups or committees.
a) True
b) False
28. Cadbury committee established in______________
a) 1999
b) 1995
c) 1992
d) 2002
29. How many recommendation is made by CII code-
a) 17
b) 18
c) 16
d) 19
30. Kumar mangalam committee is appointed by the-
a) CII
b) SEBI
c) Government
d) None
31. The remuneration of the non-executive directors should be decided by the-

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b) Top management
c) Stakeholders
d) Entire board
32. Which of the following committee was appointed by the SEBI to make recommendations on the
representation of independent directors on company board and the composition of audit committee
a) Cadbury committee
b) Kumar mangalam committee
c) Naresh Chandra committee
d) Board committee
33. Basic shareholders rights include the right to-
a) Secure methods of ownership
b) Convey or transfer shares
c) Participate and vote in general shareholder meetings
d) All of the above
34. Which of the following is use to ensure that the takeover bids are serious?
a) Disclosure
b) Trigger
c) Escrow
d) Creeping acquisition
35. Which of the following are the natures of complaints by shareholders?
a) Non receipt of dividend
b) Change of address
c) Transmission of shares
d) All of the above
36. The word “transmission” means-
a) Transfer by operation of law
b) Transfer by operation
c) Both a&b
37. Competition, debt covenants, takeover and media pressure are the-
a) Internal corporate governance controls
b) External corporate governance control
c) Both a&b
d) None
38. Simple directors who attends board meeting of a company and participate of a company and
participate in the matters before the board is-

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a) Ordinary directors
b) Managing directors
c) Executive directors
d) Shadow directors
39. The director who perform a specific role in a company under a service contract which requires a
regular, possibly daily, involvement in management is known as-
a) Non-executive director
b) Additional director
c) Executive director
d) Ordinary director
40. Which of the following is the duty of directors?
a) Statutory duties
b) Duties of general nature
c) Both a&b
d) None
41. Which of the following are the not the general duty of directors?
a) Duty of good faith
b) Duty of care
c) Duty not to delegate
d) To disclose interest
42. A document that specifies the regulations for a company’s operation is known as-
a) Memorandum of association
b) Articles of association
c) Both a&b
d) None
43. Any person, company, or other institution that owns at least one share in a company is known as-
a) Stakeholder
b) Employees
c) Shareholder
d) Customer
44. Nomination committee is appointed by the-
a) CEO
b) Board of directors
c) Management
d) Audit committee
45. The profit earned by the company with reference to the cost of capital in terms of economic profit is
referred to as-

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a) Pay-performance
b) Organization bylaws
c) Economic value added
46. Which of the following are the types of the auditor?
a) Internal
b) External
c) Government
d) All of the above
47. The auditors specialize in crimes and are used by law enforcement organization when financial
documents are involved in a crime is known as-
a) Forensic auditor
b) Government auditor
c) External auditor
d) Internal auditor
48. Set of standards against which the quality of audits is performed and may be judges is-
a) Generally accepted accounting principles
b) General accepted auditing standards
c) Audit
d) None
49. A ______________ audit is a review in which an auditor analyzes and verifies various records and
processes relating to a company’s quality programs.
a) Cost audit
b) Forensic audit
c) Quality audit
d) none
50. The important aspects of cost audit are:
a) Property audit
b) Efficiency audit
c) Both a&b
d) Government audit
51. SICA stands for_______________
52. BIFR stands for_______________
53. Basic principles of audit are_______________
a) Integrity, objectivity & independence

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b) Confidentiality
c) Documentation
d) All of the above
54. As per the SEBI guidelines, the audit committee shall meet at least-
a) Twice a year
b) Thrice a year
c) Once a year
d) None
55. _________________ opined that the chairman of the audit committee should be an independent
director.
a) Cadbury committee
b) Board committee
c) KM Birla committee
d) Audit committee
56. An audit committee should aware of technological changes, which is_________________
risk/condition.
a) Internal
b) External
c) Both a&b
d) None
57. The committees of the board involve_________________
a) Supervisory committee
b) Risk management committee
c) Shareholders’ redressal committee
d) All of these
58. NBFCs stands for_________________
59. CSR stands for_________________
60. Which of the following is the essential of accord of Basel II?
a) Capital adequacy
b) Risk based supervision
c) Market disclosure
d) All of the above
61. Which of the following are the objectives of Basel II ?
a) To promote adequate capitalization of banks
b) To ensure better risk management
c) To strengthen the stability of banking system
d) All of the above

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62. The ganguly committee is of the view that the draft minutes of the board meeting should be
forwarded to the director’s within_________________ hours of meeting.
a) 56
b) 64
c) 48
d) 32
63. In which ethical principle of the business ethics are measured by rightness of an act and depend little
on the results of this act?
a) Teleological ethical system
b) Deontological ethical system
c) Hybrid theory
d) Individual freedom
64. One of the major ethical issue in advertising is the use of______________
a) True
b) False
65. Major social responsibilities of business involve-
a) Optimum utilization of scarce national resources
b) Responsibility no to make losses
c) Improve quality of life
d) All of above
66. Government is thinking of making it mandatory for the companies to spend_________________% of
their net profits on CSR.
a) 2
b) 4
c) 6
d) 8
67. It is the responsibility of the firm towards its________________ to avoid any type of cartel formation
that a attempts to reap monopoly profits.
a) Shareholders
b) Customers
c) Employees
d) Management
68. Four important group that business are shareholders, employees, customers and_________________
a) Management
b) Board of director
c) Society
d) Stakeholder

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69. NGO stands for_________________
70. Employees should get_________________ wages
a) Clear
b) Minimum
c) Maximum
d) Fair
71. Objectives of environmental audit are-.
a) Verification of legislative and regulatory compliance
b) Assessment of internal policy and procedural conformamance
c) Establishment of current practice status
d) All of the above
72. Review of documents and records, Review of policies, interviews are comes under which stage-
a) Pre-audit stage
b) Post-audit stage
c) Audit stage
d) None
73. Environment protection act was passed in________________ for the protection of environment.
a) 1988
b) 1999
c) 1986
d) 1990
74. The financial or non-financial support of an activity, used primarily to reach the given business goals
is-
a) Media
b) finance
c) Both a&b
d) Sponsorship
75. A printed report giving news or information of interest to a special group.
a) Newsletter
b) Formal meeting
c) Mailing list
d) Media release
76. Media can be used to promote_______________ communication.
a) One way
b) Two way

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c) Both a&b
d) None
77. Businesses arrange for______________ meetings with powerful stakeholders.
a) Information display
b) Public forum
c) Formal meeting
d) Informal meeting
78. MRTP stands for_________________
79. IRDA stands for_________________
80. It is said to be exist where there is a large number of procedures (firms) producing a same kind of
product.
a) Monopoly competition
b) Monopolistic competition
c) Perfect competition
d) None
81. Which of the following aspects of economic activity is not control by MRTP?
a) Restrictive on buying/selling
b) Unfair trade practices
c) Concentration of economic power
d) Restrictive trade practices
82. Price control is the restriction on maximum prices that is established and maintained by the
government.
a) True
b) False
83. Public policy is an attempt by the government to address a private issue.
a) True
b) False
84. The SEBI was established on________________
a) March 12, 1992
b) September 14, 1992
c) April 12, 1992
d) June 15, 1993
85. The seller of the security is-.
a) Bear
b) Bull

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c) Both a&b
d) none
86. Insider trading can be defined as the sale or purchase of securities by persons who possess price
sensitive information about the company.
a) True
b) False
87. _______________ makes a commitment to get the underwritten issue subscribed either by other or by
them.
a) Utilitarianism
b) Underwriters
c) Insider trading
d) None
88. The board of SEBI consists of_______________
a) 8
b) 7
c) 4
d) 6
89. SEBI has three functions rolled into one body quasi-legislative, quasi-judicial, and quasi-executive.
a) True
b) False
90. SEBI is the regulator for the securities market in India.
a) True
b) False
91. AMFI stands for_________________.
92. Buying a commodity at a low price and instantly selling it for a higher price in another market is
known as-
a) Hedging
b) Speculating
c) Arbitrage
d) Shifting of risk
93. An over-the-counter market where buyers and sellers conduct foreign exchange transaction.
a) Commodity exchange
b) Foreign direct investment
c) FOREX
d) None

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94. Licensing grant a permit to aloe the use of something or to allow a business activity to take place.
a) True
b) False
95. Government often uses quotas to restrict export.
a) True
b) False
96. Private companies can enjoy the right to transfer shares.
a) True
b) False
97. India has 22 stock exchanges.
a) True
b) False
98. Foreign companies are those, which have been incorporated outside India and conduct business in
India.
a) True
b) False
99. Clause 49 has been prepared by the Reserve Bank of India.
a) True
b) False
100. Corporate Governance ensures easy access to capital.
a) True
b) False
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