16. Which of the following best defines corporate social responsibility (CSR)?

c. Contributing to sustainable economic development

17. Which term describes the concept of conducting business in a way that meets the needs of the

present without compromising the ability of future generations to meet their own needs?

c. Sustainability

18. Which committee is responsible for ensuring the effectiveness of the company’s internal control

systems?

a. Audit Committee

19. What does the SEC Code require in terms of the disclosure of related-party transactions?

c. They must be disclosed and approved by independent and disinterested directors.

20. Which of the following is not a requirement of the SEC Code regarding CEO succession

planning?

d. The plan should be kept confidential from shareholders.

21. Which theory contends that management is more likely to pursue their own personal interests

than to act as stewards?

b. Agency theory

22. Which theory asserts that the owners of the business alone have a legitimate claim to influence

over the company?

d. Shareholder’s theory

23. Which segment of the Mendelow’s matrix requires minimal effort from the organization?

a. A

24. Employees in a University are stakeholders that would be found in which segment of Mendolw’s

matrix?

b. B

25. The Code of Corporate Governance for Publicly Listed Companies is under which SEC

Memorandum?

c. SEC Memorandum Circular No. 19, series of 2016

26. Which companies are listed on the Philippine Stock Exchange?

a. Publicly Listed Company

27. The orientation program for first-time directors lasts for how long?

b. at least 8 hours

28. In the continuing training program for the incumbent directors which of the following is not
discussed?

a. Governance Codes and Policies

29. Which is not the responsibility of a corporate secretary?

d. have the rank of Senior Vice President or an equivalent position

30. The Board of Directors’ duty to exercise good faith and due care in the performance of their

functions, otherwise, they shall be held liable.

c. Duty of diligence

31. Who cannot be part of the Board of Directors?

c. Corporate Secretary

32. Which serves as a guide to the directors in the performance of their functions and should be

publicly available and posted on the company’s website?

a. Board charter

33. Which committee of the board is composed of at least three non-executive directors, two of

whom should be independent, including the Chairman?

d. Related Party Transactions Committee

34. Which committee is responsible for reviewing and evaluating the Corporations financial affairs

from time to time?

d. Finance Committee

35. Which of the following is true for the Doctrine of Corporate Opportunity?

a. The corporation is financially able to undertake.

b. The corporation has an interest or a reasonable expectancy.

c. Both A and B are True

36. When is the Doctrine of Corporate Opportunity not applicable?

a. If the action was made after the resignation of the director.

37. Revealing private or classified information about an organization, usually related to wrongdoing

or misconduct.

c. Whistleblowing

38. All corporations are required to submit to the SEC the reportorial requirements required under

which memorandum?

b. SEC Memorandum Circular No. 2, series of 2020

39. Which of the following is not available on an organization’s website?

a. Manual on Corporate Governance

b. Board Charter

c. Code of Business Conduct and Ethics

d. None of the above

40. Which is not a Shareholder’s Rights?

a. Appraisal Rights

b. Right to income and assets of the corporation

c. Right to protect/transfer ownership

d. None of the above

41. Pre-emptive rights are under which Shareholder’s Rights?

c. Right to protect/transfer ownership

42. An action brought by the stockholder in his name when a wrong is done to him personally and not

to other stockholders or the corporation.

a. individual suit

43. A lawsuit brought by a shareholder on behalf of a corporation against a third party.

c. derivative suit

44. It deals with the practical side of ethics and tells people what to do and what not to do.

b. Normative ethics

45. Sustainability Reporting Guidelines for Publicly Listed Companies

d. SEC Memorandum Circular No. 4, series of 2019

46. It is a development that meets the needs of the present without compromising the ability of future

generations to meet their own needs.

b. Sustainability

47. A business that has a positive impact on society and is able to maintain its profits.

a. Equitable business

48. Which is not a Shareholder’s Rights?

a. Appraisal Rights

b. Right to income and assets of the corporation

c. Right to protect/transfer ownership

d. None of the above

49. Which of the following best defines corporate social responsibility (CSR)?

c. Contributing to sustainable economic development

50. Which term describes the concept of conducting business in a way that meets the needs of the
present without compromising the ability of future generations to meet their own needs?

c. Sustainability

24. What does the “triple bottom line” concept in sustainability refer to?

b. Economic, social, and environmental performance

25. What is the primary focus of sustainability reporting?

c. Environmental, social, and governance (ESG) performance

35. A director who is not an owner and not an employee of the organization is called?

d. Independent director

36. Which is something an interlocking director should not do to reinforce board independence?

a. disclose his adverse interest

b. abstain from taking part in deliberations for the transaction

c. recuse from voting on the approval of the transaction

d. none of these

37. A contract that is initially valid and enforceable but has defects.

c. Voidable

38. Which is not a characteristic of a valid contract?

a. The vote of the self-dealing director or trustee was necessary for the approval of the contract.

39. What do you call a director who has an interest in both parties in a related party transaction?

c. Self-dealing director

47. It refers to the application of ethical principles and analytical methods to business.

d. Business ethics

48. It explains what behavior is expected of all employees and provides the standards that guide the

work of the company and how the employees should relate to customers, competitors, vendors,

and other employees.

c. Code of Business Conduct and Ethics

49. Uphold the value of truthfulness in everything we do coupled with the quality of being open to

scrutiny as we provide and disclose accurate material information in a timely manner.

d. Transparency

50. A type of critical thinking that uses ethical principles and frameworks.

c. Ethical reasoning

21. Which of the following is a key principle of business ethics?

c. Balancing profit with moral and social responsibility

23. What is a common approach for businesses to demonstrate corporate social responsibility (CSR)?

c. Donating to charitable organizations

25. What is a key reason why businesses engage in sustainability practices?

c. To enhance long-term value and reputation

47. Which sustainability development goal is under Social?

a. Clean Water and Sanitation

48. The three pillars of sustainability

a. Society, Environment, Economy

49. A business that has a positive impact on society, environment and is profitable.

d. Sustainable business