Q1. Why independent directors are effective in looking after interest of shareholders?

a. they are governmentt nominated

b. they do not have personal interest in the affairs of the company >
c. they are highly qualified
d. they are independent of locality
Q2. What makes to achieve the diversity in the board structure?
a. each director is from different field >
b. their attention is diverted to policy matters
c. some of the directors are independent directors
d. all the directors are not executive directors

Q3. What is the most important aspect of board effectiveness?

a. all directors attend the board meeting
b. the board has clear objective for evaluation >
c. chairman controls the board
d. directors are popular persons

Q4. From the following what is not a criteria for board effectiveness?
a. group dynamics
b. information architecture
c. structures and processes
d. number of shares that directors are holding >

Q5. For what purpose board committees are formed?

a. directors should meet often
b. board delegates the work to committees >
c. to take care of the paper work
d. to enhance remuneration of the directors

Q6. Which of the following cannot be the committee of the board?

a. audit committee
 b. remuneration committee
c. employees’ Union committee >
d. risk committee

Q7. How the independent directors are getting their place on board?
a. elected by shareholders
b. nominated by SEBI
c. appointed by board of directors >
d. selected by HR department

Q8. Chanda Kochar was chairman of which bank?

a. ICICI >
b. HDFC
c. IDBI
d. IndusInd bank

Q9. What was the methodology of fraud in Satyam?

a. bribe to government officers
b. fraud in purchases
c. showing less sales than actual
d. showing more profit than actual to increase share value >

Q10. What is Tata sons?

a. conglomerate of sons of Tata
b. holding company of Tata Group >
c. toy making company
d. company formed to take care of Tata family

Q11. Who is the chairman of Tata sons?

a. Ratan Tata
b. Cypress Mistry
 c. Natarajan Chandrasekharan >
d. Ajay Piramal

Q12. In what way is overall US corporate different from that of India?

a. US companies are mostly controlled by government
b. large share holding companies are more in number in US >
c. US companies are always in profit
d. US companies are not in service sector

Q13. Out of the following which is not the right of shareholder?

attend the General Body Meeting
ask for better remuneration >
elect the board of directors
appoint the auditor

Q14. Principle of listing agreement is mandatory for the companies having

paid up capital more than 3 crores >
net worth more than 10 crore
net worth more than 20 crore
paid up capital more than 2 crore

Q15. Amendment in clause 49 SEBI Act was made on the Recommendation of

Naresh Chandra committee
Narayan Murthy committee >
Birla committee
confederation of India committee

Q16. Company may become insolvent if it

can not pay creditors after realisation of its assets >
cannot meet budgeted level of profit
make a loss
has negative working capital

Q17.When was companies act enacted?

1947
1952
1956 >
1960

Q18. Who cannot be a independent director?

very busy person
non technical person
executive director of the company >
director of another company

Q19. The excess price received over par value should be credited to
share capital
securities premium
Reserve capital >
calls in advance

Q20. According to clause 49 on composition of board, if chairman is independent director, at

least how many must be the independent directors?
half
one third >
one fourth
one fifth

Q21. Which theory highlights corporate dependence external relations?

agency theory
stakeholder theory >
Stewardship theory
resource dependence

Q22. What is referred to the amount of risk an organisation is willing to take?

risk tolerance >
risk power
risk universe
risk appetite

Q23. What is the agency problem?

agents go on strike
separation of ownership and Management >
Monopoly of powerful agent
Discount is not as per prevailing market

Q24. Employees may be granted stock option for

saving salary cost
align interests of employees with that of shareholders >
use of substitute for bonus
none of these

Q25. Which one of the following is not a related party of a company as per clause 49?
major supplier to the company
director of a subsidiary company
manager in a parent company
none of the above >

26. Which of the following must be disclosed in annual report?

accounting treatment method
related party transaction
remuneration of directors
all of the above >
Q27. What is the maximum tenure of independent director?
5 years >
6 years
7 years
8 years

Q28. What is the goal of greater accounting transparency?

to reduce information asymmetry between insiders and the public >
to discourage managerial self dealing
to impose rules and Harsh penalties
1 and 2 both

Q29. What is the maximum gap between two board meetings permitted as per law?
125 days
120 days >
90 days
180 days

Q30. How many minimum number of meetings of board should be held in a year as per law
3
4>
5
6

Q31. Which view sees maximization of profit as the main objective

theory of a firm >
shareholders theory
stakeholders theory
agency theory
Q32. Which country does not have cross ownership of shares as a major part of business
culture?
Germany >
Japan
India
United States

Q33. Who can be a chairman of audit committee

executive director
Managing Director
non executive director
independent director >

Q34. Which one of the following argument is in favour of corporate social responsibility?
companies earn profit from society >
CSR leads to diluted profit maximization
CSR improves financial performance
government is unable to spend on social projects

Q35. Why should business assume social responsibility?

strong government
better public image
use of society's resources >
all of the above

Q36. What should be the minimum age of independent director as per law?
18 years
21 years >
25 years
30 years
Q37. Amongst all the stakeholders primary stakeholders are
bankers
customers
shareholders >
supplier

Q38. Managers are interested to run the company in the best interest of
board of directors >
all stakeholders
shareholders
employees

Q39. Which of the following statements are correct. A executive directors are responsible for
running of a firm. B independent directors are responsible to ensure shareholders interest
A
B
Both A and B >
None

Q40. In which year companies law was restructured

1991
2013 >
2016
none of the above

Q41. Clause 49 is not applicable to

Mutual Fund >
listed companies
Financial Institutions
none of the above
Q42. What are the challenges in exercising shareholders right?
all shareholders do not attend General Meeting
shareholders do not have all the information
shareholders are scattered
all of the above >

Q43. What is the main objective of institutional investors?

higher profit
increase in share value >
select Board members
control board of directors

Q44. Why separation of role of chairman and CEO is necessary?

a. Fair and personal interest free policy decisions in board meeting >
b. to avoid conflict between CEO and director
c. to control executive directors
d. all of the above

Q45. The goal of corporate governance and business ethics education is to:

a. Teach students their professional accountability.

b. Change the way in which personal Integrity is taught to students.
c. Create more ethics standards by which corporate professionals must operate. >
d. Increase the workload for management students.

Q46. The corporate governance structure of a company reflects the individual. companies’:

a. Cultural and economic system.

b. Legal and business system.
c. Social and regulatory system.
d. All of the above. >

Q47. Under which theory both internal and external corporate governance mechanisms are
intended to induce managerial actions that maximize profit and shareholder value.
a. Shareholder theory. >
b. Agency theory.
c. Stakeholder theory.
d. Corporate governance theory

Q48. The chairperson of the board of directors and CEO should be leaders with:

a. Vision and problem solving skills.

b. The ability to motivate.
c. Business acumen.
d. All of the above. >

Q49. A board that is elected in a classified system is known as a:

a. Diversified board. >

b. Staggered board
c. Rotating board.
d. Declassified board.

Q50. The foundation for corporate culture are laid by

a. Corporate members
b. Competitors
c. Founders >
d. Industry standard

Note- Option marked > is the correct answer