Corporate Governance MCQS: 1. Property of The Company Belongs To
Corporate Governance MCQS: 1. Property of The Company Belongs To
Corporate Governance MCQS: 1. Property of The Company Belongs To
MCQS
1. Property of the company belongs to.
a) Company
b) Share holders
c) Members
d) Promoters
Answer: (a)
Answer: (d)
40. The issue of corporate governance received considerable press attention in USA in
a) First half of 1990’s
b) First half of 1992’s
c) In mid of 1993
d) In 1998
Answer: (a)
41. Corporate governance received considerable press attention in USA due to
a) Issue of financing
b) Wave of CEO dismissals
c) Both (a) (b)
d) None of the above
Answer: (b)
42. In 1992, report of the Committee on financial Aspects of ……….. was published
a) Corporate governance
b) Corporate Law
c) Corporate Social responsibility
d) None of the above
Answer: (a)
43. The Cadbury report was published in
a) USA b)UK
c) UAE d) India
Answer: (b)
44. The Cadbury report describe as the ………..in thinking of Corporate Governance
a) Basic tools
b) Landmark
c) Both (a) (b)
d) None of the above
Answer: (b)
45. Myners Report was Published in
a) 1992 b) 1994
c) 1995 d) 1999
Answer: (c)
46. Green bury Report was published in
a) 1992 b) 1995
c) 1993 d) 1998
Answer: (b)
47. Green bury Report was dealt with the
a) Stakeholders remuneration
b) Shareholders remuneration
c) Promoters remuneration
d) Directors remuneration
Answer: ( d)
48. UK issued a Combined Code of Corporate Governance in
49. 1999 b) 1998
50. c) 1993 d) 1996
Answer: (b)
Answer: (a)
84. Internal and external shareholders are types of
a) Stakeholders
b) Shareholders
c) Debtors
d) Creditors
Answer: (b)
85. Internal shareholders may be further classified into
a) 3 Main groups b) 6 Main groups
c) 5 Main groups d) Two Main groups
Answer: (d)
86. All this types shareholders who have a majority of directors on the board of the
company is called………..
a) Internal shareholders
b) External shareholders
c) Minor shareholders
d) Both (a) (b)
Answer: (a)
87. Small private investor and investing organization is the types of
a) Internal shareholders
b) External shareholders
c) Both (a) (b)
d) Only (a)
Answer: (b)
88. These all shareholders who have no representation at the board is called……..
a) External shareholders
b) Internal shareholder
c) Both (a) (b)
d) None of the above
Answer: (a)
89. In Pakistan the Internal or Controlling shareholders ratio is
a) 60 to 70%
b) 40 to 50%
c) 50 to 55%
d) 38 to 42%
Answer: (c)
90. External shareholders fail to get any representation on the board because
a) They hold a minority of shares
b) They hold a majority of shares
c) Both (a) (b)
d) None of the above
Answer: (a)
91. When large corporations wish to expand their operation they create
a) New Committee
b) New Company
c) New Production of a product
d) Expand existing Company
Answer: (b)
92. In Pakistan, there are a large number of …………….. that are listed at Karachi Stock
Exchange
a) Private company
b) Public company
c) Foreign company
d) Both (a) (c)
Answer: (c)
93. Corporate shareholders are generally
a) Well organized
b) Bad Performance
c) Mid Performance
d) None of the above
Answer: (a)
94. Also Known as institution investor, these are financial institution that make a
business of ……………….. in other companies
a) Provide Loan
b) Investing in shares
c) Or bounds
d) Both (b)(c)
Answer: (d)
95. Pension Funds is an example of
a) Corporate shareholders
b) Private company
c) Institution investor
d) Institution shareholders
Answer: (d)
96. Collect premiums from their client whom they promise to repay with profits at the
end of expiry of policy term is called
a) Mutual Fund
b) Banks
c) Managed Fund
d) Life insurance Companies
Answer: (c)
97. Funds are floated by investing banks or similar financial institution but do not have
tradable unlike mutual funds is called………..
(a) Mutual Fund
(b) Managed Fund
(c) Banks
(d) Life insurance Companies
Answer: (b)
98. Banks, both commercial and investing banks, also frequently invest in the share of
………. either directly or on behalf of their clients.
a) Unlisted Company
b) Listed Company
c) Private company
d) None of the above
Answer: (b)
99. Generally institution shareholders allocate a good percentage of its investment
portfolio to
a) Short term shareholding
b) Long term shareholding
c) Both (a) (b)
d) None of the above
Answer: (b)
100. What is mean of (AGM)
a) Average Gross Margin
b) Almost good market
c) Annual general Meeting
d) Both (a) (b)
Answer: (c)
101. Annual General Meeting are called at the end of
a) Every 1 year
b) Every 2 year
c) Every 3 year
d) Every 4 year
Answer: (a)
102. Company ordinance
a) 1998
b) 1984
c) 1964
d) 1956
103. Corporate governance concerned with
a) Governing the corporate entity
b) Governing the corporate law
c) Under the act
d) Under the company act
104. People work together for achieving goal is called------
a) Company
b) Corporate
c) Governance
d) Act
a) Its capital consist of several units called---
b) Bonds
c) Debenture
d) Shares
e) Securities
105. People holding shares in a company & its members are called-------
a) Shareholder
b) Debenture
c) Securities
d) Bonds
106. The shares of a company -------- transferable
a) Freely
b) Not freely
c) independent
d) A and b
107. Transfer of share transfer one person to another person is
a) Effect on the company
b) Not effect on the company
c) Effect on the company member
d) Not effect on the company member
108. A company is considered a ------ and has an entity its own quite
a) Legal person
b) Separate
c) Independently
d) A and c
109. Share holder being a --------- entity of a company
a) Not a separate
b) Separate
c) Member
d) Not member
110. The management of the company is entrusted people called----
a) Director
b) Shareholder
c) Stakeholder
d) Member
111. Director are the eventually answerable to the
a) Member
b) Shareholder
c) Stake holder
d) All members of the company
112. A company is deemed to have------ life
a) Indefinite
b) Definite
c) Free
d) Dependent
113. How many types of company
a) 6
b) 9
c) 8
d) 10
114. Unlimited company are those whose shareholder have-------toward the
company
a) Limited liability
b) Limited asset
c) Unlimited liability
d) Unlimited asset
115. In private limited company generally ------- transferable share
a) Not free
b) Free
c) Dependent
d) Independent
116. In private limited company how many member are included
a) More than 3 and less than 100
b) No limit
c) 2 and not more then 50
d) Unlimited
117. In public limited company generally ------- transferable share
a) Not free
b) Freely
c) Dependent
d) Independent
118. The shareholder elect the -----
a) Board of director
b) Chair man
c) CEO
d) Executive director
146. . How many salient features are there for ordinary shares?
a) 1
b) 2
c) 3
d) 4
147. Who is the true risk bearer of the company?
a) Shareholders
b) creditors
c) debtors
d) all of the above
148. What kinds of decisions are taken by the shareholders in annual general
meeting?
a) elections of directors
b) declaration of dividends
c) major policy issue
d) all of the above
149. Real power of policy making is in the hand of---------
a) shareholders
b) executive officer
c) managers
d) all of the above
150. Companies practices a financial democracy that is based on;
a) one vote per shareholder
b) one vote per share held
c) a and b
d) none
151. Who has the first right to purchase the new shares offered by company?
a) board of directors
b) equity share holders
c) creditors
d) none
152. All companies are required by law to offer all new shares to the:
a) existing shareholders
b) creditors
c) suppliers
d) shareholders
153. The new shares which are offered to the existing shareholders have the price
---- than market;
a) more than nominal value
b) at nominal value
c) less than nominal value
d) none
154. Preference shares are also called preferred stock in ------ term;
a) British
b) American
c) Greek
d) Japanese
155. Who do not have voting power?
a) equity shareholders
b) common stock holder
c) preferred stock holder
d) none
156. Which shareholders do not carry the risk?
a) equity shareholders
b) common stock holder
c) preferred stock holder
d) none
157. No matter profit is low or high they will get 7% of their dividend who are
they?
a) equity shareholders
b) common stock holders
c) preferred share holders
d) none
158. In case of when company liquidate, they are paid after creditors who they are?
a) equity shareholders
b) common stock holders
c) A and B
d) preferred share holders
159. Preferred shareholders claim in company is after outsiders but before:
a) equity shareholders
b) common stock holders
c) A and B
d) preferred share holders
160. Who said there is neither a separate ethics of business nor is one needed?
161. a) Peter Ducker b) John Smith c) Albert
d) NA
162. Running and managing a business has ---- principles functions
163. a) 4 b) 5 c) 3 d) 8
164. Business ethics reflect the
165. a) Profit b) marketing c) philosophy of business d)
business rules
166. Q4: How many elements in business ethics?
167. a) 2 b) 3 c) 4 d) a
and b both
168. Q5: A code of ethical conduct prepared and enforced by a company’s
169. a) CEO b) board of directors c) Shareholders
d) Manager
170. Q7: An ethically run company plays its due role in society which results in
171. a) Increase profit b) betterment of society c) decrease trust d)
increase sale
172. Q8: Ethical conduct of business keeps everyone
173. a) Happy b) sad c) A and b both
d) NA
174. Q9: Intellectual property rights (IPR) treat IP as a kind of
175. a) Real property b) virtual property d) temporary
property d) permanent property
176. Q10: When most loyal employee may find personal interest collide with that
of organization is called
177. a) right of employee b) insider trading d) coercion d)
conflict of interest
178. Q11: ___ refers to forcing a person to act in a manner
179. a) Bribery b) coercion c) CEO
d) Law
180. Q12: Which organizations maintains a regular integration with all its
stakeholders?
181. a) Ethical organization b) unethical organization c) profitable
organization d) a and c both
182. Q13: A trading refers to use of privileged price sensitive information that is
known to the general market for the purpose of personal gain is called
183. a) outsider trading b) insider trading c) forex trading
d) stock trading
184. SECP stands for
(a) Securities and Exchange Commission of Pakistan
(b) Securities and Public Commission of Pakistan
(c) Securities and Stock Exchange Commission of Pakistan
(d) NA
185. Q16: Ethics refers to ‘doing the right, in the right way, for the
186. a) Right reason b) personal reason c) a and b
both d) NA
187. Q17: Corporate entities are legally considered
188. a) As person b) as business c) as entity d)
not a person
189. Q18: The ___ play very important and effective part in ensuring that
companies behave ethically
190. a) CEO b) Manager c) Director
d) Law
191. Q19: How many dimensions of ethics?
a) a) Three b) four c) five
d) one
192. Q20: How many ways in which business ethics may be enforced what is right?
a) a) Three b) Two c) Seven
d) Ten
193. Where Enron Company exist
a) a) UK b) American c) Pakistan d)
India
194. The internal control policy is done at-----------
(a) Board level
(b) Organizational level
(c) Low level
(d) Middle level
D: All of above
216. The form of balance sheet is
A: Vertical
B: Horizontal
C: Horizontal or vertical
D: none
A: Statement of operations
B: Statement of earnings
C: Statement of income
D: All of above
A: Motor vehicles
B: Machine
D: cash at bank
A: The directors
D: The shareholders
396. 19. Auditors colluded with or failed to stop the executive directors from
using
a) Proper accounting policies
b) Improper accounting policies
c) Implement policies
d) None of the above
397. Answer: (b)
398. 20. The disparity in remuneration between the higher and lower echelons
of employees grew to
a) Uncomfortable levels
b) Comfortable levels
c) Both (a) (b)
d) None of the above
399. Answer: (a)
400. 21. WorldCom this Phone and Communication company used
a) New techniques
b) Age-old techniques
c) Average techniques
401. D) None of the above
402. Answer: (b)
403. 22. Its chairman ‘borrowed’ ……..from the company to cover personal
debts.
a) Over $ 408 million
b) Over$ 402 million
c) Over $ 503 million
d) Over $ 732 million
404. Answer: (a)
405. 23. Enron energy company created outside partnership that helped it to
hide its
a) Good financial Position
b) Poor financial Position
c) Very bad position
d) Average position
406. Answer: (b)
407. 24. Adelphia Communication company made illegal loans to founder Riga’s’
……and was investigated for accounting malpractices.
a) Friends members
b) Foreign members
c) Family members
d) None of the above
408. Answer: (c)
409. 25. Waste garbage management company misstated its earnings by 17$
billion over a six year period
410. a) 1992-97 b) 1993-98
411. c) 1991-96 d) 1994-99
412. Answer: (a)
413. 26. Sothern California company overstated revenue by $ 100 million over a
414. a) three year period b) Four year period
415. c) Five year period d) Six year period
416. Answer: (a)
417. 27. A major example of governance failure is
a) Bank of Credit & Commerce International (BCCI)
b)Barings Bank
b) Polly Peck international
c) Mirror Group of Newspaper
418. Answer: (a)
419. 28. This Polly peck international company went from being a small firm
with a market capitalization of just
a) €300,000
b) € 450,000
c) €649,000
d) € 545394
420. Answer: (a)
421. Chapter no 3
432. Amounts of shares paid by the company to the share holder at the time of
a) During its life time
b) Company’s liquidation
c) At any time
d) None of the above
433. Answer: (b)
434. A company can go on forever without paying any………..to its equity holders
a) Facilities
b) Interest
c) Dividend
d) None of the above
435. Answer: (c)
436. The size of dividend each year decided by the company’s
a) Management
b) Owner
c) Shareholders
d) None of the above
437. Answer: (c)
438. All public limited companies are required by law to offer all new issue of
shares only to their
a) Managers
b) Employees
c) Existing share holders
d) None of the above
Answer: (c)
439. Ordinary shareholders are entitled to the residual of profits and residual of
a) Business Assets
b) Company’s Assets
c) Govt Property
d) None of the above
Answer: (b)
440. Generally, ordinary shareholders are the only class of shareholder who
have
a) Right of the vote
b) Right of the Sale company
c) Both (a) (b)
d) None of the above
Answer: (a)
441. The right of ………….Elected directors, External auditor and approve financial
Statement
a) Stakeholders
b) Common Shareholders
c) Debtors
d) Ordinary Shareholders
Answer: (d)
442. In Pakistan, most company are created and controlled by
a) Families
b) Families and closed group
c) Friends groups
d) None of the above
Answer: (b)
443. Equity shareholders can be classified in
a) Two broad groups
b) Five board groups
c) Three board groups
d) One board groups
Answer: (a)
444. Internal and external shareholders are types of
a) Stakeholders
b) Shareholders
c) Debtors
d) Creditors
Answer: (b)
445. Internal shareholders may be further classified into
a) 3 Main groups b) 6 Main groups
c) 5 Main groups d) Two Main groups
Answer: (d)
446. All this types shareholders who have a majority of directors on the board
of the company is called………..
a) Internal shareholders
b) External shareholders
c) Minor shareholders
d) Both (a) (b)
Answer: (a)
447. Small private investor and investing organization is the types of
a) Internal shareholders
b) External shareholders
c) Both (a) (b)
d) Only (a)
Answer: (b)
448. These all shareholders who have no representation at the board is
called……..
a) External shareholders
b) Internal shareholder
c) Both (a) (b)
d) None of the above
Answer: (a)
Answer: (c)
457. Funds are floated by investing banks or similar financial institution but do
not have tradable unlike mutual funds is called………..
(a) Mutual Fund
(b) Managed Fund
(c) Banks
(d) Life insurance Companies
Answer: (b)
458. Banks, both commercial and investing banks, also frequently invest in the
share of ………. either directly or on behalf of their clients.
a) Unlisted Company
b) Listed Company
c) Private company
d) None of the above
Answer: (b)
459. Generally institution shareholders allocate a good percentage of its
investment portfolio to
a) Short term shareholding
b) Long term shareholding
c) Both (a) (b)
d) None of the above
Answer: (b)
460. What is mean of (AGM)
a) Average Gross Margin
b) Almost good market
c) Annual general Meeting
d) Both (a) (b)
Answer: (c)
461. Annual General Meeting are called at the end of
a) Every 1 year
b) Every 2 year
c) Every 3 year
d) Every 4 year
Answer: (a)