This Study Resource Was: "Life Is Like An Exam I Am Determined To Pass." - Unknown

GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY MIDTERM EXAM
“Life is like an exam I am determined to pass.” – Unknown

I. Multiple Choice (30 points). Read the following questions
carefully and answer what is being asked. Choose the correct
answer and place in the space provided.
1. This refers to the conditions where an LGU demonstrates positive and
stable economic performance, and maintains, preserves and mandatory
upholds the practice of fiscal discipline, sustainability, accountability and
transparency, by adhering to pertinent budgeting laws, rules and
regulations, best practices in public financial management, generally
accepted and recognized accounting and auditing standards, and full
disclosure policy.
a. Good Financial Administration
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b. Good Financial Sustainability
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c. Good Fiscal Administration
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d. ALL OF THE ABOVE
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Answer: d
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2. A progressive Performance assessment system that gives LGUs
distinction for their remarkable performance across governance areas.
a. Performance Appraisal System
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b. Seal of Good Local Governance

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c. Seal of Good Governance

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Answer: b
3. This organization is established for-profit organizations that issue shares
of stock to shareholders (also known as stockholders) to raise capital,
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with each share representing partial ownership of the corporation and

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granting shareholders certain ownership rights that shape company

policies.
a. Non-stock corporation
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b. Stock corporation
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c. Profit Organization
Answer: c
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4. A corporation is an artificial being created by operation of ______.

a. Law
b. Management
c. Agency
Answer: a
5. This means, by the fiction of law a corporation is a juridical person whose
personality is separate and distinct from its owners.
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a. Powers, Attributes and Properties
b. Created by Operation of Law
c. Artificial Being
Answer: c
6. The attribute of Corporation means it is authorized to do activities within

the purpose of its creation, it has its own traits, and it operates based on
what has been expressly provided in the character including those that
are considered incident to its existence as a corporation.
c. Artificial Being
Answer: a
7. A corporation attribute where it can contribute to exist even in death,

incapacity or insolvency of any stockholder or member.
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c. Right of Succession
Answer: c
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8. A corporation that does not have owners represented by shares of stock.
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a. Non-stock corporation
b. Stock corporation
c. Profit Organization
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Answer: a
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9. Under constitutional government, those who govern are regularly

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accountable to at least a portion of the governed.

a. Accountability
b. Transparency
c. Liquidity
ed d
Answer: a
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10. The capacity of outsiders to obtain valid and timely information

about the activities of government or private organizations.
a. Accountability
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b. Transparency
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c. Liquidity
Answer: b
sh
11. Direct tax that applies to individuals earning an income by way of

employment, practicing their profession or trading.
a. Busines s Tax
b. Income Tax
c. Professional Tax
Answer: c
12. Refers to a tax paid by certain enterprises that want to do business
in some states.
a. Business Tax
b. Franchise Tax
c. Income Tax
Answer: b
13. The income of a government from all sources, used to pay for a
nation’s expenses.
a. Taxes
b. Revenue
c. Corruption
Answer: a
14. Appointing and removing subordinates, prepares the budget and
influence the policy-making and fiscal affairs.
a. Legislative
b. Executive
c. Administrative
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Answer: b
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15. The process therein where law making is inherent of the
Sangunian.
o.
a. Legislative
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b. Executive
c. Administrative
Answer: a
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16. Review ordinances, resolutions, executive orders, appropriations,

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grant franchises, and conduct committee activities.

a. Legislative
b. Executive
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c. Administrative
Answer: c
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17. This refers to the party who lend to the corporation goods,
services, or money.
a. Creditor
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b. Lessee
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c. Debtor
Answer: a
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18. The people who invest their capital in the corporation. The people
who, in some cases considered as the first believer of what the entity can
do.
a. Stakeholder
b. Bondholder
c. Shareholder
Answer: c
19. This refers to the party given the authority to implement the
policies as determined by the Board in directing the course or business
activities in the corporation.
a. Management
b. Organization
c. Policy Maker
Answer: a
20. They are the ones who invested their future in the company with
full trust and confidence that the entity would make them secure in
return of their service.
a. Investors
b. Employees
c. Shareholders
Answer: b
21. The party considered to be the very reason for the existence for the
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corporation. They are the buyers of the corporation’s product or services
for final consumption enjoyment, or maybe for the use in the production
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or creation of another goods.
a. Customers
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b. Clients
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c. Consumers
d. All of the choices
Answer: b
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22. This where the company has a legal obligation in terms of Taxes
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and has to follow the rules and regulations set.

a. Government
b. Banks
ed d
c. Loan Agencies
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Answer:
23. it is generally defined as a person or entity that is the holder of a
currently outstanding bond.
is
a. Stakeholder
Th
b. Bondholder
c. Shareholder
Answer: b
sh
24. They are the ones who conducts all business and controls or holds
all the assets of such corporations.
a. Managers
b. Management
c. Board of Directors
Answer: c
25. The result of responsible or irresponsible conduct of these
corporations can also affect _________ in so many ways. It has a stake in
corporations considering that the latter provides the citizens with the
essentials such as goods, services, employment, and tax money.
a. Environment
b. Public
c. Government
Answer: b
26. Responsible for the development, design, operation, and
improvement of the systems that create and deliver the firm's products.
a. Chief Operating Officer
b. Chief Executive Officer
c. Chief Financial Officer
Answer: a
27. The responsible of bringing into line the company, internally and
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externally, with their long-term vision.
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o.
Answer: b
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28. Responsible for financial planning and records keeping, as well as
financial reporting to higher management.
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Answer: c
29. The functional area responsible for turning inputs into finished
outputs through a series of production processes.
a. Processing
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b. Production
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c. Development
Answer: b
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30. The formal configuration between individuals and groups with

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respect to the allocation of tasks, responsibilities, and authorities within

organizations.
a. Organizational Structure
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b. Organizational Chart
c. Organizational Standard
Answer: a
II. TRUE OR FALSE (10). Please read the statement carefully. Write True if it is
correct, otherwise write False.
1. In the right of succession under the attributes of Corporation, the
corporation will be dissolved even when there are transfers of
ownership.
Answer: False
2. Shareholders or stockholders are artificial or natural persons that are
legally regarded as owners of the corporation.
Answer: True
3. The corporation and its owners are generally treated as distinct legal
entities.
Answer: True
4. Advantage of Nonprofit Organization is that members of the board of
directors receives payment for their service; they must be volunteers.
Answer: False
5. Disadvantage of Nonprofit Organization It cannot receive donations
from people.
Answer: False
6. The major function of Corporation is to increase profit.
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Answer: True
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7. As a shareholder it has the right to vote on matters such as elections of
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the board of directors.
Answer: True
o.
8. One of the duties of Board of Directors is ensuring the availability of
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adequate financial resources.
Answer: True
9. Corporate Governance is the process and structure use to direct
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manage the business and affairs of the company towards enhancing

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business prosperity and corporate accountability with the ultimate

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objective of realizing long-term shareholder value, whilst taking into

account the interest of other stake holders.
Answer: True
10. Shareholder’s value can be improved by making a pre-commitment
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to build better relations with primary stakeholders like employees,

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customers, suppliers, and communities.

Answer: True
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III. ENUMERATION (15 POINTS).

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1. Give the following attributes of Corporation (4).

a. artificial being
b. created by operation of law
sh
c. right of succession
d. powers, attributes and properties
2. Elements of Corporate Governance (5).
a. Good Board practices.
b. Control Environment.
c. Transparent disclosure.
d. Well-define shareholder rights.
e. Board commitment.
3. One position under Organizational structure (1).

a. Chief Executive Officer
4. The goals of Financial Management (5)
a. To survive.
b. To avoid financial distress and bankruptcy
c. To beat the competition
d. To maximize profits
e. To maintain a steady earnings growth
IV. ESSAY QUESTION (15 POINTS).

1. What are the functions of the stakeholders to the operation of
Company and to its success?
A stakeholder is a party that has an interest in a company and can either affect or be
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affected by the business. They can either internal or external and they are important
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for a number of reasons:
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1. For internal stakeholders, they are important because the business’s operations
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rely on their ability to work together toward the business’s goals.
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2. For external stakeholders, they can affect the business indirectly. Example,
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customers can change their buying habits, suppliers can change their manufacturing
and distribution practices, and governments can modify laws and regulations.
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Managing relationships with internal and external stakeholders is the key to a

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business’s long-term success.

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ed d
ar stu
is
Th
sh
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GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY MIDTERM EXAM

“Life is like an exam I am determined to pass.” – Unknown

b. Seal of Good Local Governance

c. Seal of Good Governance

with each share representing partial ownership of the corporation and

granting shareholders certain ownership rights that shape company

4. A corporation is an artificial being created by operation of ______.

6. The attribute of Corporation means it is authorized to do activities within

7. A corporation attribute where it can contribute to exist even in death,

9. Under constitutional government, those who govern are regularly

accountable to at least a portion of the governed.

10. The capacity of outsiders to obtain valid and timely information

11. Direct tax that applies to individuals earning an income by way of

16. Review ordinances, resolutions, executive orders, appropriations,

grant franchises, and conduct committee activities.

and has to follow the rules and regulations set.

b. Chief Executive Officer

c. Chief Financial Officer

30. The formal configuration between individuals and groups with

respect to the allocation of tasks, responsibilities, and authorities within

manage the business and affairs of the company towards enhancing

business prosperity and corporate accountability with the ultimate

objective of realizing long-term shareholder value, whilst taking into

to build better relations with primary stakeholders like employees,

customers, suppliers, and communities.

III. ENUMERATION (15 POINTS).

1. Give the following attributes of Corporation (4).

3. One position under Organizational structure (1).

IV. ESSAY QUESTION (15 POINTS).

Managing relationships with internal and external stakeholders is the key to a

business’s long-term success.

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