32 + Mcqs in Corporate Governance and Business Ethics Page 1 McqOptions

1.	Which of the following is not one of the underlying principles of the corporate governance combined code of practice?
A.	Accountability
B.	Openness
C.	Acceptability
D.	Integrity
Answer» D. Integrity

Discussion

2.	The framework for establishing good corporate governance and accountability was originally setup by
A.	Nestle committee
B.	Rowntree committee
C.	Cadbury committee
D.	Thornton committee
Answer» C. Cadbury committee

Discussion

3.	According to clause 49 on independent directors. What can be maximum tenure of independent director.
A.	2 terms of 5 years each
B.	3 terms of 5 years each
C.	2 terms of 10 years each
D.	3 terms of 4 years each
Answer» B. 3 terms of 5 years each

Discussion

4.	According to clause 49 on independent directors. What should be minimum age of independent director.
A.	21
B.	22
C.	23
D.	24
Answer» B. 22

Discussion

5.	Worldwide, about ___________ percent of businesses in the private sector are small or medium sized.
A.	80
B.	85
C.	90
D.	99
Answer» D. 99

Discussion

6.	In the United States, small or medium sized businesses provide over ___________ percent of total employment.
A.	25
B.	40
C.	50
D.	75
Answer» D. 75

Discussion

7.	A ____________ of an issue consists of weighing and balancing all of the competing demands on a firm by each of those who have a claim on it.
A.	stakeholder analysis
B.	board of directors analysis
C.	corporation analysis
D.	management analysis
Answer» B. board of directors analysis

Discussion

8.	The generally accepted definition of a small business is one with ____________ or fewer employees.
A.	10
B.	20
C.	25
D.	50
Answer» E.

Discussion

9.	The generally accepted definition of a medium business is one with _____________ or fewer employees.
A.	50
B.	100
C.	200
D.	250
Answer» E.

Discussion

10.	The ____________ position is that a corporation can and should be evaluated not only in terms of its financial bottom line, but also in terms of its environmental bottom line and its social/ethical bottom line.
A.	Bottom line
B.	Double Bottom line
C.	Triple Bottom line
D.	Final line
Answer» C. Triple Bottom line

Discussion

11.	An organization that is owned by shareholders but managed by agents on their behalf is conventionally known as the modern:
A.	Conglomerate
B.	Corporation
C.	Company
D.	Firm
Answer» C. Company

Discussion

12.	The modern corporation has four characteristics. These are limited liability, legal personality, centralized management and:
A.	Fiduciary duty
B.	Stakeholders
C.	Shareholders
D.	Transferability
Answer» E.

Discussion

13.	Where an organization takes into account the effect its strategic decisions have on society, this is known as:
A.	Corporate governance
B.	Business policy
C.	Business ethics
D.	Corporate social responsibility
Answer» E.

Discussion

14.	The _________ approach to formal corporate ethics initiatives focuses on meeting required behaviour norms or obeying the letter of the law
A.	Rules
B.	Compliance
C.	Principles
D.	Values
Answer» C. Principles

Discussion

15.	Social responsiveness refers to the capacity of a firm to adapt to changing _________________.
A.	societal conditions
B.	organizational conditions
C.	societal leaders
D.	organizational managers
Answer» B. organizational conditions

Discussion

16.	The belief that a firm pursuit of social goals would give them too much power is known as what argument in opposition to a firm being socially responsible?
A.	Costs
B.	lack of skills
C.	lack of broad public support
D.	too much power
Answer» E.

Discussion

17.	Global organizations must __________ their ethical guidelines so that employees know what is expected of them while working in a foreign location
A.	Clarify
B.	Provide
C.	Establish
D.	broaden
Answer» B. Provide

Discussion

18.	The ________ dimension of social responsibility refers to a business's societal contribution of time, money, and other resources.
A.	Ethical
B.	Philanthropic
C.	Volunteerism
D.	Strategic
Answer» C. Volunteerism

Discussion

19.	Which of the following would most effectively act as the primary objective of a business organisation?
A.	To make a profit
B.	To procure resources
C.	To communicate with shareholders
D.	To mediate between the organisation and the environment
Answer» B. To procure resources

Discussion

20.	What type of justice exists if employees are being open, honest, and truthful in their communications at work?
A.	Procedural
B.	Distributive
C.	Ethical
D.	Interactional
Answer» E.

Discussion

21.	Which act provides sweeping new legal protection for employees who report possible securities fraud making it unlawful for companies to discharge, demote, suspend, threaten, harass, or in any other manner discriminate against them?
A.	Sarbanes-Oxley Act of 2002
B.	Foreign Corruption Act
C.	Economic Espionage Act
D.	U.S. vs. O Hagan
Answer» B. Foreign Corruption Act

Discussion

22.	Which of the following is NOT one of the primary elements of a strong organizational compliance program?
A.	A written code of conduct
B.	An ethics officer
C.	Significant financial expenditures
D.	A formal ethics training program
Answer» D. A formal ethics training program

Discussion

23.	Which board of directors committee is responsible for the guidelines on how the board of directors should operate.
A.	Operating
B.	Corporate governance
C.	Corporate compliance
D.	Guiding
Answer» C. Corporate compliance

Discussion

24.	One whistle blower the text mentions is Cynthia Cooper who was the vice president of internal audit at ____________.
A.	Enron
B.	WorldCom
C.	Tyco
D.	none of the above
Answer» C. Tyco

Discussion

25.	What is the name of the process in which an employee informs another responsible employee in the company about potentially unethical behavior?
A.	Whistle-blowing
B.	Purging and releasing
C.	Identification
D.	Information transfer
Answer» B. Purging and releasing

Discussion

26.	There are ___________ conditions that, if satisfied, change the moral status of whistle blowing.
A.	three
B.	four
C.	five
D.	six
Answer» D. six

Discussion

27.	An example of a whistle blower whose actions were a form of internal government whistle blowing is:
A.	Sherron Watkins.
B.	Coleen Rowley.
C.	Cynthia Cooper.
D.	Lee Iacocca.
Answer» C. Cynthia Cooper.

Discussion

28.	A ________ is a problem, situation, or opportunity requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong.
A.	Crisis
B.	ethical issue
C.	indictment
D.	fraud
Answer» C. indictment

Discussion

29.	In a ______________ organization, decision making is delegated as far down the chain of command as possible.
A.	Decentralized
B.	Creative
C.	Flexible
D.	Centralized
Answer» E.

Discussion

30.	Why, according to stakeholder theory, is it in companies' best interests to pay attention to their stakeholders?
A.	If firms only act in their own self-interest employees may feel exploited.
B.	If firms only act in their own self-interest government might put more regulation on them.
C.	If firms only act in their own self-interest customers might not like the image that the company portray.
D.	If firms only act in their own self-interest and inflict harm on stakeholders then society might withdraw its support.
Answer» E.

Discussion

31.	The system that is used by firms to control and direct their operations and the operations of their employees is called:
A.	Corporate Compliance.
B.	Corporate Governance.
C.	Corporate Control.
D.	Corporate Directive.
Answer» C. Corporate Control.

Discussion

32.	_____________ is a document that outlines principles for doing business globally in the areas of human rights, labour, the environment, and anticorruption.
A.	A code of ethics
B.	The Global Compact
C.	The Foreign Corrupt Practices Act
D.	Global Ethics
Answer» C. The Foreign Corrupt Practices Act

Discussion

Explore topic-wise MCQs in Master of Commerce (MDotcom).

Which of the following is not one of the underlying principles of the corporate governance combined code of practice?

The framework for establishing good corporate governance and accountability was originally setup by

According to clause 49 on independent directors. What can be maximum tenure of independent director.

According to clause 49 on independent directors. What should be minimum age of independent director.

Worldwide, about ___________ percent of businesses in the private sector are small or medium sized.

In the United States, small or medium sized businesses provide over ___________ percent of total employment.

A ____________ of an issue consists of weighing and balancing all of the competing demands on a firm by each of those who have a claim on it.

The generally accepted definition of a small business is one with ____________ or fewer employees.

The generally accepted definition of a medium business is one with _____________ or fewer employees.

The ____________ position is that a corporation can and should be evaluated not only in terms of its financial bottom line, but also in terms of its environmental bottom line and its social/ethical bottom line.

An organization that is owned by shareholders but managed by agents on their behalf is conventionally known as the modern:

The modern corporation has four characteristics. These are limited liability, legal personality, centralized management and:

Where an organization takes into account the effect its strategic decisions have on society, this is known as:

The _________ approach to formal corporate ethics initiatives focuses on meeting required behaviour norms or obeying the letter of the law

Social responsiveness refers to the capacity of a firm to adapt to changing _________________.

The belief that a firm pursuit of social goals would give them too much power is known as what argument in opposition to a firm being socially responsible?

Global organizations must __________ their ethical guidelines so that employees know what is expected of them while working in a foreign location

The ________ dimension of social responsibility refers to a business's societal contribution of time, money, and other resources.

Which of the following would most effectively act as the primary objective of a business organisation?

What type of justice exists if employees are being open, honest, and truthful in their communications at work?

Which act provides sweeping new legal protection for employees who report possible securities fraud making it unlawful for companies to discharge, demote, suspend, threaten, harass, or in any other manner discriminate against them?

Which of the following is NOT one of the primary elements of a strong organizational compliance program?

Which board of directors committee is responsible for the guidelines on how the board of directors should operate.

One whistle blower the text mentions is Cynthia Cooper who was the vice president of internal audit at ____________.

What is the name of the process in which an employee informs another responsible employee in the company about potentially unethical behavior?

There are ___________ conditions that, if satisfied, change the moral status of whistle blowing.

An example of a whistle blower whose actions were a form of internal government whistle blowing is:

A ________ is a problem, situation, or opportunity requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong.

In a ______________ organization, decision making is delegated as far down the chain of command as possible.

Why, according to stakeholder theory, is it in companies' best interests to pay attention to their stakeholders?

The system that is used by firms to control and direct their operations and the operations of their employees is called:

_____________ is a document that outlines principles for doing business globally in the areas of human rights, labour, the environment, and anticorruption.