Corporate Governance MCQs

Risk management
Q.1 When the labors become more expansive due to increase in government mandated minimum wage. Which type of risk will be face by the companies? a. b. c. d. Production Risk Market Risk Price Risk (ans) Economic Condition risk

Q.2 In the process of the risk management what should be consider before talking the decision of risk? a. b. c. d. Risk assessment Risk identification (ans) Risk retention Risk transfer

Q3. When the transport company is insured only third party risk technique is using. a. b. c. d. Q.4. a. b. c. d. Loss prevention Retention by default Retention by choice (ans) Risk transfer On which base company selected the risk technique? Minimization the cost (ans) Maximization of profit To secure the company Both A and C

Q5. When companies eliminate the potential loss due to increase the price to the input, that is.. a. b. c. d. Options Diversifying Hedging (ans None of the above

Q6. Holding comparable amounts of many risky assets instead of concentrating all of your investment in only one asset.

Corporate Governance MCQs

a. b. c. d. Q7. I. II. III. IV. a. b. c. d. Q8. a. b. c. d. Q9. a. b. c. d. Q10. a. b. c. d. e. Hedging Options Diversification (ans) Both B and C Risk assessment will involve finding answers to the following Question? How likely is it for any of these risks to happen? What the will be the profit? What would be the cost of eliminating or transferring this risk to someone else? What is the maximum possible financial loss that you will suffer in each of the listed situations? I and II I, II and III II, III, ad IV I, III, and IV (ans) .. have the ultimately responsible for managing the risk. Executive director Board of Director (ans) Management Shareholder The people are taking the risk because .. Reward Inevitability Reward and inevitability (ans) None of the above All of the following are included in the risk identification process except Customers Subcontractors Competitors (ans) Vendors, None of these are included

Corporate Governance MCQs

Corporate social responsibility
Q1. a. b. c. d. Q2. a. b. c. d. Q3. a. b. c. d. The scope of corporate social responsibility is Philanthropy Doing business responsibly Being a good citizen All of the above (ans) Philanthropy is associated with giving ......... To needy people. Cash Clothes Alms (ans) Food Examples of fairness is ( are) : nepotism discrimination No favoritism (ans) Both A and B

Q4. Tanneries around ......... Have virtually killed the rivers through dumping their wastes into it. a. b. c. d. Q5. a. b. c. d. Q6. Peshawar Tokyo Lahore (ans) All of the above The concept of CSR in Pakistan is still in its .......... Way Infancy (ans) Both A and B All of the above What are the positive effects of CSR Reporting on the company . a. Honor its commitments b. Build positive image c. Better applicants for employment

Corporate Governance MCQs

d. All of the above (ans) Q7. a. b. c. d. Q8. a. b. c. d. e. In Pakistan, CSR is frequently equated with Corporate philanthropy (ans) Zero All correct except (a) None of the above There are a number of ways looking after the environment Maintaining eco-balance Avoiding pollution All true except (b) All false except (a) A & B only (ans)

The Directors
Q1. The person who attend board meetings as observer but is not formally elected is ______________ a. Executive Director b. Shadow Director c. De facto Director (ans) d. Alternative Director Q2. The person who is not formally elected and does not attend board meeting but has great influence on BoD meetings is _____________ a. b. c. d. Executive Director Shadow Director (ans) De facto Director Alternative Director

Q3. A is a Director but is in foreign, He authorize B to attend meeting on As behalf, in here B is __________ a. b. c. d. Shadow De Facto Alternative (ans) Executive

Corporate Governance MCQs

Q4. The use of price sensitive information by individual due to his position in company is _____________ a. b. c. d. Market Abuse Insider trading (ans) outsider trading None of these

Q5. The phenomenon of spreading rumors or misleading information to distort share prices is called _______ a. b. c. d. e. Q6. a. b. c. d. Market Abuse (ans) Insider trading outsider trading None of these

A director can be disqualified for all the following reasons except _____ Becomes insane Declared bankrupt Convicted of criminal offence suitable for job (ans)

Q7. Except for ________ companies the law does not restrict on number of tenures a director can serve a. b. c. d. Q8. a. b. c. d. Textile Banking (ans) Chemical None The remuneration of INEDs include Bonds Shares Attending fee (ans) Both B & C

Q9. If an executive director is declared bankrupt by the company he can still become an INED director of a company. a. Yes b. No (ans)

Corporate Governance MCQs

Q10. ____________ Directors are not willing to devote enough time to company affairs because of low remuneration a. b. c. d. Executive directors INEDs (ans) De facto shadow

Internal control
Q1. _________ is a very effective tool of internal control that is available only to large scale companies. a. Internal audit (ans) b. Internal check c. External audit Q2. If _________ is effective, it can cut down the detailed worked to be done by the __________. a. b. c. d. Q3. Internal control, external audit (ans) External control, external audit Internal control, internal audit Both B and C

Drawing up internal control policy, is a stage of __________ a. b. c. d. Setting Internal Controls (ans) Types of Reports Monitoring Internal Controls Both B and C

Q4.

Essential elements of Jubbs definition are a. b. c. d. e. Non deliberate and both obligatory Made by a person who has no access to information Made to an inside party that has the potential to rectify All of the above None of the above (ans)

Q5.

________ is a person who formally supplies information under an oath. a. Witness (ans)

Corporate Governance MCQs

b. Squealer c. Tipster d. Both B and C Disclosure made by a person thats from inside the company __________ a. b. c. d. Q7. Hard whistle blowing Whistle blowing Both a & b Soft whistle blowing (ans)

Q6.

Disclosure made by a person thats from outside the company _________ a. b. c. d. Hard whistle blowing (ans) Soft whistle blowing Whistle blowing Both A & C

Q8 _________ is a person who has a direct knowledge of mainly because he participated in it and is now exposing it. a. b. c. d. Squealer (ans) Mischief Maker Reporter Both A and B

Q9. ___________ are control processes a part of the normal operational procedures, are special reports sent o the board by the management, etc a. b. c. d. Monitoring (ans) Information and communications Risk assessment Both A and B

Q10. Regular checking of all documents and records by companys own audit staff is called _____ a. b. c. d. Internal check Supervisory controls Basic controls All of the above e. None of the above (ans)

Corporate Governance MCQs