2/6/23, 10:37 AM SEATWORK CHAPTER 3

SEATWORK CHAPTER 3
SECURITIES AND EXCHANGE COMMISSION (SEC) CODE OF CORPORATE GOVERNANCE

* Required

1. Email *

2. The Board should establish an Audit Committee to enhance it’s oversight * 1 point
capability over the company’s financial reporting, external control system,
internal and external audit processes and compliance with applicable laws
and regulations.
Check all that apply.

True
False

3. The Board should establish board committees that focus on general board * 1 point
functions to aid in the optimal performance of it's roles and
responsibilities.

Check all that apply.

True
False

4. The non-executive directors of the Board should concurrently serve as * 1 point

directors to a maximum of eight publicly listed companies.
Check all that apply.

True
False

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2/6/23, 10:37 AM SEATWORK CHAPTER 3

5. The positions of chairman of the Board and Chief Executive Officer should * 1 point
be held by separate individuals

Check all that apply.

True
False

6. The best measure of the board’s effectiveness is through assessment * 1 point

process.
Check all that apply.

True
False

7. The company should not establish corporate disclosure policies and * 1 point
procedure that are practical and in accordance with the best practices and
regulatory expectations.
Check all that apply.

True
False

8. Members of the boards are duty-bound to apply high ethical standards, * 1 point
taking into account the interests of all stakeholders.
Check all that apply.

True
False

9. A candidate who's convicted by final judgment of an offense punishable by * 1 point

imprisonment for 5 years can be nominated as a board member.

Check all that apply.

True
False

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2/6/23, 10:37 SEATWORK

10. The SEC may provide other grounds for the disqualification of a board * 1 point

member.
Check all that apply.

True
False

11. Securities and Exchange Commission approved the Code of Corporate * 1 point

Governance for publicly-listed companies, and the goal is to help

companies develop and sustain an ethical corporate culture and keep
abreast with recent developments in corporate governance.
Check all that apply.

True
False

Identification

12. It is a process designed and effective by the board of directors, senior * 1 point

management, and all levels of personnel to provide reasonable

assurance on the achievement of objectives through efficient and
effective operations; reliable, complete and timely financial and
management information; and compliance with applicable laws,
regulations, and the organization’s policies and procedures.

13. It is a person who is independent of management and the controlling * 1 point

shareholder, and is free from any business or other relationship which

could, or could reasonably be perceived to, materially interfere with his
exercise of independent judgment in carrying out his responsibilities as a
director.

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