1.

The basic principle of “transparency and full disclosure” for effective corporate governance
responds positively to the following questions except
a. Does the board of directors’ safeguard integrity in financial reporting?
b. Does the board meet the information needs of investment communities?
c. Can an outsider meaningfully analyze the firm’s actions and performance?
d. Has the board built long-term sustainable growth in shareholders’ value for the
corporation?

2. The basic principle of “accountability” for effective governance answers the following questions
positively, except
a. Does the board recognize and manage risk?
b. Does the board lay solid foundations for management oversight?
c. Does the composition mix of board membership ensure an appropriate range and risk of
expertise diversity; knowledge added value?
d. Does the board promote objective, ethical and responsible decision making?

3. “Transparency and full disclosure” principle advocates the following except

a. Sound disclosure policies and practices
b. Solid foundations for management oversight
c. Meeting the information needs of investment communities
d. Safeguards integrity in financial reporting

4. The rights of shareholders can be effectively upheld through the following measures except
a. By establishing an audit committee
b. By designing and disclosing a communications strategy to promote affective
communication with shareholders.
c. By encouraging active participation at general meetings.
d. d. By requiring the external auditor to attend the annual general meeting and to answer
questions about the audit.

5. To safeguard integrity in financial reporting, the business firm should do the following except
a. Establish an audit committee
b. Request the external auditor to attend the annual general meeting
c. Disclose the functions reserved to the board and those delegated to management
d. Disclose the policy concerning trading in company securities directors, officers and
employees.

6. To encourage enhanced performance by the board and management, it is recommended that

the following should be adopted except
a. Disclosure of the process for performance evaluation of the board, its Committees,
individual directors and by executives.
b. A remuneration committee.
 c. Distinguish between non-executive director’s remuneration from that of executives.
d. Establish policies on risks oversight and management.
7. The characteristic of good governance where fair legal framework are enforced impartially is
a. Participation
b. Rule of Law
c. Equity
d. Accountability