CGV MCQ 1. The objectives of good corporate governance by adhering to the law and compliance of ethical standards are required to achieve the following objectives i. Fair distribution of wealth and discharge Corporate Social Responsibility ii. Fair distribution of wealth and creation of shareholder value iii. Discharge of Corporate Social Responsibility and creation of value to the planet iv. Discharge of Corporate Social Responsibility and creation of value to the society 2. Accountability means i. every actions and decisions taken by people in the organisation is accountable to higher authority ii. equal treatment among all in equal situation iii. the disclosure of right information to the right person at right time iv. procedures and structures are independent from person to person 3. Fairness means i. every actions and decisions taken by people in the organisation is accountable to higher authority ii. Equal treatment among all in equal situation iii. The disclosure of right information to the right person at right time iv. Procedures and structures are independent from person to person 4. Transparency means i. every actions and decisions taken by people in the organisation is accountable to higher authority ii. Equal treatment among all in equal situation iii. The disclosure of right information to the right person at right time iv. Procedures and structures are independent from person to person 5. Independence means i. every actions and decisions taken by people in the organisation is accountable to higher authority ii. Equal treatment among all in equal situation iii. The disclosure of right information to the right person at right time iv. Procedures and structures are independent from person to person 6. Participatory is one of the characteristics of good governance i. participation means the involvement of employees as a stakeholder ii. participation means the involvement of both the internal and external stakeholder iii. participation means the involvement of civil society as stakeholder iv. participation means the involvement of all internal stakeholders 7. Civil society can also play a major role in good corporate governance of corporations in a country i. Agree ii. Disagree iii. Neither agree nor disagree iv. Civil society is not a stakeholder for corporate governance 8. Consensus oriented is one of the characteristics of good corporate governance i. it means arbitration of different opinions of the stakeholders ii. It means mediation of different opinions of the stakeholders iii. It means adjudication of different opinions of the stakeholders iv. It means arbitration and adjudication of different opinions of the stakeholders 9. The following are the benefits of good corporate governance except i. Prevention of frauds ii. Increasing the confidence of investors i ii. Positive cooperation from the stakeholders iv. Decreasing borrowings from lenders 10. Fair employment practices include the following, except: i. Prohibition of forc.

1. CGV MCQ 1. The objectives of good corporate governance by adhering to the law and
compliance of ethical standards are required to achieve the following objectives
i. Fair distribution of wealth and discharge Corporate Social Responsibility
ii. Fair distribution of wealth and creation of shareholder value
iii. Discharge of Corporate Social Responsibility and creation of value to the planet
iv. Discharge of Corporate Social Responsibility and creation of value to the society
2. Accountability means
i. every actions and decisions taken by people in the organisation is accountable to higher
authority
ii. equal treatment among all in equal situation
iii. the disclosure of right information to the right person at right time
iv. procedures and structures are independent from person to person
3. Fairness means
i. every actions and decisions taken by people in the organisation is accountable to higher
authority
ii. Equal treatment among all in equal situation
iii. The disclosure of right information to the right person at right time
iv. Procedures and structures are independent from person to person
4. Transparency means
i. every actions and decisions taken by people in the organisation is accountable to higher
authority
ii. Equal treatment among all in equal situation
iii. The disclosure of right information to the right person at right time
iv. Procedures and structures are independent from person to person
5. Independence means
i. every actions and decisions taken by people in the organisation is accountable to higher
authority
ii. Equal treatment among all in equal situation
iii. The disclosure of right information to the right person at right time
iv. Procedures and structures are independent from person to person
6. Participatory is one of the characteristics of good governance
i. participation means the involvement of employees as a stakeholder
ii. participation means the involvement of both the internal and external stakeholder
iii. participation means the involvement of civil society as stakeholder
iv. participation means the involvement of all internal stakeholders

2. 7. Civil society can also play a major role in good corporate governance of corporations in a
country
i. Agree
ii. Disagree
iii. Neither agree nor disagree
iv. Civil society is not a stakeholder for corporate governance
8. Consensus oriented is one of the characteristics of good corporate governance
i. it means arbitration of different opinions of the stakeholders
ii. It means mediation of different opinions of the stakeholders
iii. It means adjudication of different opinions of the stakeholders
iv. It means arbitration and adjudication of different opinions of the stakeholders
9. The following are the benefits of good corporate governance except
i. Prevention of frauds
ii. Increasing the confidence of investors i
ii. Positive cooperation from the stakeholders
iv. Decreasing borrowings from lenders
10. Fair employment practices include the following, except:
i. Prohibition of forced labour
ii. Prohibition of child labour
iii. Prohibition of compulsory labour
iv. Prohibition of collective bargaining
11. Which one of the following is a characteristic of a poor corporate governance?
i. Over gearing
ii. One big project
iii. One big supplier
iv. Lack of accountability
12. The followings are the characteristics of a good corporate governance, except?
i. Accountability
ii. Transparency
iii. Control system
iv. Unsound policies
13. Directors sign and approve document without adequate review, identify the correct answer
i. a characteristic of poor corporate governance
ii. a sign of poor corporate governance
iii. a characteristic of good corporate governance
iv. a sign of good corporate governance

3. 14. Which one of the following is not a source of rights of shareholders?
i. Companies act
ii. General Law
iii. Articles of Association
iv. Company decisions in company general meetings
15. Monada is a director for Muesli Co. and Mia has shares in that company. Monada has a duty
to act in the best interest of Mia. Which one of the following is not a right of Mia?
i. To remove directors
ii. To receive notice of AGM
iii. To appoint a proxy
iv. To exercise veto power
16. Masika is acting as a managing director even though he is not appointed as directors. So he is
a:
i. Director by estoppel
ii. Director by nomination
iii. Non-executive director
iv. Independent director
17. Independent directors also has the right to access information
i. less than managing directors
ii. less than non-executive directors
iii. equal to all other directors
iv. No access to information
18. The proper conduct of meeting of the board of directors is the responsibility of
i. all those who attend the meeting
ii. Chairman
iii. Managing director
iv. CEO
19. Disqualification of the directors
i. an individual, not a company
ii. hold a share qualification
iii. Competent to enter into a contract
iv. Person of unsound mind
20. Which statement is correct for Non-executive directors is one who
i. Can engage in day to day operation of the business
ii. Cannot engage in day to day operation of the business
iii. Cannot attend the meetings of shareholders

4. iv. Cannot conduct the meetings of shareholders
21. The powers of the directors include the following except;
i. borrow money on behalf of the company
ii. enter into contracts on behalf of the company
iii. declare dividend for shareholders
iv. approval of dividends for shareholders
22. If a director has entered into the contract with the company. Which responsibilities should he
act upon?
i. disclose interest of the contract at the board of directors meeting
ii. disclose interest of the contract at the creditors meeting
iii. Do not want to disclose but perform the contract as agreed
iv. Cancel the contract because directors cannot contract with the company
23. Risk management is a continuing process which include the following except;
i. risk identification
ii. risk assessment
iii. mitigation of risk
iv. adaptation of the risk
24. The members of the audit committee are chosen from the
i. directors
ii. shareholders
iii. audit firms
iv. internal audit department
25. Which of the following is not a function of audit committee
i. ensure that the financial statement reflects true and fair view
ii. appointment of external auditors and fixing their fees
iii. oversight of the company financial reporting process
iv. oversight of the work of independent auditors