0% found this document useful (0 votes)
769 views56 pages

Corporate Governance MCQS: 1. Property of The Company Belongs To

Download as docx, pdf, or txt
Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1/ 56

Corporate Governance

MCQS
1. Property of the company belongs to.
a) Company
b) Share holders
c) Members
d) Promoters

Answer: (a)

2. Each share of the company has a value.


a) Big nominal value
b) Zero value
c) Small nominal value
d) None of this
Answer: (c)
3. A person who purchases common stock of a corporation is known as:
a) Preferred stockholder
b) Creditor
c) Bond holder
d) Shareholder
Answer: (d)
4. 4. Shareholder being a separate entity from.
a) Management
b) Company
c) Promoter’s
d) Board of Directors
Answer: (b)
5. 5. Transfer of shares in the company is
a) Restricted
b) Freely transferable
c) Prohibited
d) None of these
Answer: (b)
6. 6. Generally Company Life is
a) Limited life
b) Indefinite life
c) Fixed time Life
d) Situation does not arise
Answer: b)
7. 7. A company considered as a
a) Legal Person
b) Illegal person
c) Gov. Property
d) None of above
Answer: (a)
8. 8. Directors are selected by
a) Shareholders
b) Stakeholders
c) Promoters
d) Creditors
Answer: (a)
9. 9. Management are separated from
a) Stakeholders
b) Owners
c) Creditors
d) Debtors
Answer: (b)
10. 10. There are essentially types of Company
a) 2 b) 3
c) 4 d) 5
11. Answer: (a)
12. Which company shares can be freely transferable
a) Private Company
b) Public Company
c) Both (a) & (b)
d) None of the
Answer: (a)

13. 12. Minimum number of members in case of public company


a) 1 b) 2
c) 5 d) 7
Answer: (d)
14. 13. Minimum number of members in case of private company is
a) 1 b) 2
c) 3 d) 5
Answer: (2)
15. 14. Maximum no. of members in case of private company is
a) 50 b) 100
c) 150 d) 200
Answer: (a)
16. 15. Maximum no .of members in case of public company is
1) 0 b) unlimited
c) 50 d) 100
Answer: (b)
17. 16. . Liability of a member in case of a private company is
a) Limited
b) Unlimited
c) Both (a) or (b)
d) None of the above
Answer: (c)
18. Minimum no. of Directors in case of a public company is __________
a) 1 b) 2
c) 3 d) 4
Answer: (c)
19. 18. The liability of members if company is limited by guarantee.
a) Unpaid value of shares
b) Guarantee amount
c) Unlimited liability
d) None of the above
Answer: (b)
20. 19. The liability of members if company is limited by shares
a) Unpaid value of shares
b) Guarantee amount
c) Unlimited liability
d) None of the above
Answer: (a)
21. 20. Hierarchy of a company comprise of the
a) Two Stages b) Five Stages
c) Four Stages d) Six Stages
Answer: (c)
22. 21. Decision made by a company are affect
a) All stakeholders
b) Only Shareholders
c) Only Customer
D) None of the above
Answer: (a)
23. 22. Corporate Governance as the ……… used to control and direct the affair of a
corporate body
a) Mechanism
b) Decision
c) idea
d) Group
Answer: (a)
24. 23. According to The Cadbury Report (1992) Corporate Governance as the system
by which companies are
a) Only Controlled
b) Tools and idea
c) Directed and controlled
d) None of the above
Answer: (c)
25. 24. Management is answerable to
a) Shareholders
b) Stakeholders
c) Debtors
d) Board of Directors
Answer: (d)
26. 25. Board of Directors is answerable to
a) Stakeholders
b) Debtors
c) Creditors
d) Shareholders
Answer: (d)
27. 26. Employees hired by the board to operate the company’s affairs on a day to day
basis is called
a) Management
b) Debtors
c) Creditors
d) None of the above
Answer: (a)
28. 27. Planning, Leading, Organization and control functions are involved in
a) Running any Organization
b) Running for a Specific Department
c) Running for a Specific Organization
d) None of the above
Answer: (a)
29. 28. The board of directors responsible for governance of the
a) Country
b) Department
c) Company
d) Shareholders
Answer: (C)
30. 29. How many corporate Sins found among directors and senior managers
a) 4 b) 6
c) 3 d) 2
Answer: (c)
31. 30. Sloth is ……………to take risks and initiatives
a) Unwillingness
b) Willingness
c) Both (a) (b)
d) None of the above
Answer: (a)
32. 31. Greed is the desire of managers to get the best for
a) For all
b) Only for Specific Persons
c) Themselves
d) Both (a) (c)
Answer: (c)
33. 32. ………….. Is a tendency to refrain from doing anything so as to displease a boss,
or investors?
a) Fear
b) Greed
C) Sloth
c) None of the above
Answer: (a)
34. 33. Agency theory covers only the
a) Principal Relationship
b) Agent-principal Relationship
c) Both (a) (b)
d) None of the above
Answer: (b)
35. 34. How much types of Approaches
a) 4 b) 3
b) 5 d) 2
Answer: (b)

36. 35. How many Key issue of Corporate Governance


a) 5 b) 4
C) 3 d) 2
Answer: (a)
37. 36. Which approach is most suitable?
a) Stakeholders approaches
b) Shareholders approaches
c) English approaches
d) None of the above
Answer: (b)
38. 37. Financial reporting includes the ……….
a) Accuracy and reliability
b) Reliability
c) Both (a) (b)
d) None of the above
Answer: (a)
39. From mid-1970’s a lot of debate on that corporate governance is field of study in
a) Developed economic
b) Developing economic
c) Only Specific part
d) Both (a) (b)

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)

51. 11. This combination Code was applied on


a) All UK listed Companies
b) All USA listed Companies
c) All Germany listed Companies
d) Both (a) (b)
Answer: (a)
52. 12. This Combination code which applied on all UK companies was revised in
a) 2006 b) 2005
c) 2003 d) 2001
Answer: (c)
53. 13. In 1997, the East Asian financial crisis saw the Economic of
a) Germany, America
b) Turkey, UAE, Australia
c) Pakistan, India, Iran
d) Thailand, Indonesia, South Korea,
54. Answer: (d)
55. 14. The massive bankruptcies and criminal malfeasance of Enron and WorldCom in
a) In the early, 2000’s
b) In the early, 2001’s
c) In the early, 2004’s
d) In the early, 2003
56. Answer: (a)
57. 15. The Surbanes-Oxley Act of
a) 2003 b) 2002
c) 2007 d) 2004
Answer: (b)
58. 16. In Pakistan, Securities and Exchange Commission of Pakistan issued a Code of
a) Corporate governance in 2002
b) Corporate governance in 2003
c) Corporate governance in 2005
d) Corporate governance in 2006
Answer: (a)
59. 17. Boards were generally ineffective and played into the hands of
a) Shareholders
b) Stakeholders
c) Debtors
d) Executive directors
Answer: (d)
60. 18. Managers awarded themselves huge bonuses and stock options, often at the
expense of the
a) Shareholders
b) Stakeholders
c) Both (a) (b)
d) Board of directors
Answer: (a)
61. 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
Answer: (b)
62. 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
Answer: (a)
63. 21. WorldCom this Phone and Communication company used
a) New techniques
b) Age-old techniques
c) Average techniques
64. D) None of the above
Answer: (b)
65. 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
Answer: (a)
66. 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
Answer: (b)
67. 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
Answer: (c)
68. 25. Waste garbage management company misstated its earnings by 17$ billion
over a six year period
a) 1992-97 b) 1993-98
c) 1991-96 d) 1994-99
Answer: (a)
69. 26. Sothern California company overstated revenue by $ 100 million over a
a) three year period b) Four year period
c) Five year period d) Six year period
Answer: (a)
70. 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
Answer: (a)
71. 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
Answer: (a
72. Who is the shareholder?
a) Manager of a company
b )Auditor of a company
c) Employee of a company
d) Who has own shares in a company
Answer: (d)
73. The rights, powers and obligations of the shareholders depend s on the base of
a) Qualification
b) Working ability
c) Shares held by him in the company
d) None of the above
Answer: (c)
74. …………Types of shares widely used in Pakistan.
a) Ordinary Shares
b) Extra Ordinary Shares
c) Primary Shares
d )None of the above
Answer: (a)
75. 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
Answer: (b)
76. A company can go on forever without paying any………..to its equity holders
a) Facilities
b) Interest
c) Dividend
d) None of the above
Answer: (c)
77. The size of dividend each year decided by the company’s
a) Management
b) Owner
c) Shareholders
d) None of the above
Answer: (c)
78. 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)
79. 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)
80. 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)
81. The right of ………….Elected directors, External auditor and approve financial
Statement
a) Stakeholders
b) Common Shareholders
c) Debtors
d) Ordinary Shareholders
Answer: (d)
82. 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)
83. Equity shareholders can be classified in
a) Two broad groups
b) Five board groups
c) Three board groups
d) One board groups

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

119. CG as the system by which companies are directed and controlled


a) Cadbury
b) According to OECD
c) LA PORTA
d) O Donovan
120. Who is stake holder--------- in the company?
a) Relation in a company
b) No relation in a company
c) Board of director in a company
d) Eco of the company
121. Management can
a) Run the company
b) Make policies
c) Make principal
d) A and b
122. Who is the owner of the company?
a) Shareholder
b) Director
c) Stakeholder
d) Member
123. Decision made by a company affect all the----
a) BOD
b) Shareholders
c) CEO
d) Employees
124. The mechanism used to control the direct affairs of corporate body to sure the
collective interest of all its stakeholder--------
a) Corporate governance
b) Corporate law
c) Business law
d) B and c
125. Cadbury report under the act-----
a) 1994
b) 1992
c) 1999
d) 2000
126. The corporate governance as the system by which companies are directed and
control -------
a) Green bury report
b) Land mark
c) Cadbury report
d) Hampel report
127. Types of corporate sins
a) 6
b) 5
c) 3
d) 8
128. -------- is unwillingness to takes and inactive
a) Greedy
b) Sloth
c) Fear
d) A and c
129. It is a tendency to refrain to refrain from doing anything
a) Sloth
b) Greed
c) B and a
d) Fear
130. Bord of director are called----
a) Commission
b) Watch dog
c) Managers
d) B and c
131. Types of agencies is-----
a) 4
b) 3
c) 5
d) 7
132. Board of director of a company should governor the company for the best
interest of its----
a) Stake holder
b) CEO
c) Shareholder
d) A and b
133. There are -------- key issue of corporate governs
a) 6
b) 3
c) 5
d) 10
134. How many member in include stake holder
a) 6
b) 5
c) 7
d) 8
135. Company affair day to day basis is called
a) Management of the company
b) Board of director
c) Executive director
d) Manager
136. Corporate governance supports
a) Capital market
b) Shareholder
c) Director
d) Stake holder
137. Who is the real owner of a company?
a) creditor
b) debtor
c) shareholders
d) stakeholders
138. The rights, powers and authority of a shareholder is decided by;
a) dividend paid to him
b) presence in annual general meeting
c) voting rights
d) on the types of shares held by him
139. Ordinary share is a ------ term;
a) British
b) American
c) Greek
d) Japanese
140. The common stock is a -------term;
a) British
b) American
c) Greek
d) Japanese
141. Share is the also called;
a) common stock
b) equity share
c) ordinary share
d) all of the above

142. Money of share can only be refunded by company in case of;


a) bankruptcy
b) liquidation
c) winding up

d) all of the above


143. Company can buy its own shares” what your opinion about this statement?
a) True
b) false
c) true at some extinct
d) I don’t know
144. The size of dividend paid to shareholders is decided by every-----?
a) week
b) year
c) month
d) day
145. Size of dividend is decided by ------------ in a year;
a) Shareholders
b) Board of directors
c) creditors
d) debtors

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

195. Which system is design for the division or department of company?


(a) Managerial control
(b) Basic control
(c) Internal control system
(d) None of them

196. Internal control system prepares by


(a) Board
(b) Shareholder
(c) Owner
(d) Management

197. The Internal control system approves by


(a) Board
(b) Shareholder
(c) Owner
(d) Management

198. In internal control generate reports and reports must be prepared at


(a) Reasonable frequency
(b) Reasonable detail
(c) Both a and b
(d) None of them
199. Which report is generates daily by internal control
(a) Cash balances
(b) Sales report
(c) Income statement
(d) Staff matters

200. Which report generate weekly by internal control


(a) Cash balances
(b) Sales report
(c) Income statement
(d) Staff matters

201. Which report may be generate monthly by internal control


(a) Cash balances
(b) Sales report
(c) Income statement
(d) Staff matters

202. Which report may be prepare quarterly by internal control


(a) Cash balances
(b) Sales report
(c) Income statement
(d) Staff matters

203. Income statement must be reviewed by the


(a) CFO
(b) Board
(c) CEO
(d) Management

204. Pakistan’s Code of Corporate Governance issued by


(a) SECP
(b) CEO
(c) CFO
(d) None of them
205. What is meaning of whistleblowing
(a) Person who exposes secretive information
(b) Ethical
(c) Deemed legal
(d) Both b and c
206. Internal control techniques name are
(a) Internal audit, supervisory control, basic control
(b) Internal audit, internal check, BOD
(c) Internal audit
(d) Both a and c

207. Why basic control is design


(a) Ensuring company transaction are valid
(b) Pay wages to employees
(c) To control management
(d) Non of the above
208. Primary documents are
(a) Cheque, receipt, sale invoice
(b) Sale invoices, credit notes
(c) Both a and b
(d) Non of them
209. Most important thing we focus in recruitment process
(a) Right person, Right place, Right job
(b) Right person for Right job
(c) Wrong person, for Right job

210. What type of companies afford expenses of setting up an independent internal


audit department
(a) Small scale
(b) Medium scale
(c) Large scale
(d) Welfare organizations

211. Regular examination of all accounting records is the duty of


(a) Internal Audit
(b) Internal check
(c) Basic control
(d) Supervisor

212. External Auditor is appointed by


(a) BOD
(b) Company
(c) Shareholder
(d) Internal auditor

213. External Auditor is not answerable to


(a) BOD
(b) Company
(c) Shareholder
(d) Internal auditor
214. Net working capital is defined as;
a) Total liabilities minus shareholders’ equity
b) Current liabilities minus shareholders ‘equity
c) Current assets minus current liabilities
d) none
215. The term financial statement covers

A: Profit loss statement

B: Blance sheet and profit loss statement

C: Profit and loss statement and balance sheet

D: All of above
216. The form of balance sheet is

A: Vertical

B: Horizontal

C: Horizontal or vertical

D: none

217. P&L statement is also known as

A: Statement of operations

B: Statement of earnings

C: Statement of income

D: All of above

218. Which of following is a liability?

A: Motor vehicles

B: Machine

C: Creditors for goods

D: cash at bank

219. The independent auditor’s primary responsibility is to

A: The directors

B: the Company’s creditors

C: the Company’s bank

D: The shareholders

220. How long is the auditor’s term of office?


a) Until the audit is complete
b) Until financial statements are complete
c) : Until next AGM
d) D:none
221. Ethics
refer to doing……….
a) (a)rig b) (b)in c) (c)for d) (d)all
ht right right off
thing way reaso these
n
222. 2.Runnin
g or managing of business has …….functions
a) (a)1 b) (b)2 c) (c)3 d) (d)4
223. 3.
……….is not the function of running and managing business
a) (a)pla b) (b)div c) (c)org d) (d)co
nning ision anizin ntrol
g
224. 4.How
many elements of business ethics
a) (a)1 b) (b)2 c) (c)3 d) (d)4
225. 5.There
are three ways in which business ethics may be enforced ,namely through……..
a) (a)law b) (b)ind c) (c)pla d) (d)no
, ustrial n ne of
indust code , ,organ these
rial law ize
code, ,inter ,contr
ethics nal ol;
codes
226. 6.Which
is not the benefit of business ethics
a) (a)im b) (b)attr c) (c)attr d) (d)re
provin act act duce
g capita emplo profit
image l yees
227. 7.What
should make the company to behave ethically
a) (a)law b) (b)co c) (c)bot d) (d)no
urage h of ne of
these these
228. 8.In
business ethics what is the advantage of implementing law
a) (a)inc b) (b)red c) (c)ma d) (d)no
rease uce ke ne of
honest profit peopl these
y e
disho
nest
229. 9.Industri
al and professional codes are issued by
a) (a)sec b) (b)sta c) (c)cha d) (d)bu
p te rtered sines
bank or s
engin man
eering
counc
il
230. 10.In
Pakistan the business man are portrayed as
231. (a)hon 232. (b)gre 233. 234.
est edy c
235. 11.Busin
ess caste system in Pakistan comes from
a) (a)ind b) (b)chi c) (c)Af d) (d)ira
ia na ghani n
stan
236. 12Which
is the factor of unethical behavior of employees
237. (a)pre 238. (b)po 239. 240.
ssure of work or leadership working these
hours
241. 13.Which
is not the aspect of unethical behavior at corporate level
a) (a)bri b) (b)co c) (c)tax d) (d)go
bery ercion evasi od
on salar
y
242. 14.Coerci
on refers to
a) (a)for b) (b)en c) (c)bot d) (d)no
cing a coura h of ne of
perso ging these these
n the
perso
n
243. 17.Tax
evasion is
a) (a)not b) (b)giv c) (c)giv d) (d)fiv
giving ing ing ing
tax tax half full
tax tax
244. .Insider
trading means
a) (a)lea b) (b)giv c) (c)giv d) (d)no
king ing ing ne of
infor shares mone these
matio y
n
245. 19.Which
is the code from which the ethical conduct in a company can enforce
a) (a)hon b) (b)dis c) (c)fra d) (d)all
esty hones ud of
and ty these
integri
ty
246. 20Busine
ss ethics in Pakistan
a) (a)goo b) (b)ba c) (c)bet d) (d)no
d d ter ne of
than these
Europ
e
247. All types of actions undertaken for the welfare of society is called:
a) Business ethics
b) CSR
c) Financial report
248. The focus of economic responsibility is on making:
a) Maximizing shareholder wealth & profit
b) Minimize cost
c) Social responsibility
249. Legal responsibility is focus on:
a) Denying of law
b) Obeying of law
c) Restriction of law
250. Social responsibilities are focus on:
a) Profit Gain
b) Denying of law
c) Welfare of society

251. Philanthropy is also known as:


a) Social initiative
b) Good citizenship
c) Accountability
252. Business ethics refers to
a) Doing the right thing
b) In the right way
c) For the right reason
d) All of above
253. Integrity refers to
a) Doing the business dishonestly
b) Doing the business honestly
c) Doing the business lazily
254. Equitable and equal treatment of all employees, suppliers and customers are
called:
a) Integrity
b) Fairness
c) Good citizenship
255. Any person who attach with company for any benefit is called:
a) Shareholder
b) Debenture holder
c) Stakeholder
256. Investment in community means:
a) Building playground
b) Stadium & Parks
c) All of them
257. Accountability for the economic responsibility of the firm refers to
a) Loss
b) Profit
c) Share
258. The word ‘COMMUNITY’ derived from
a) Turkish
b) Persian
c) Latin
259. ---------- is a place where buyers and sellers carried out their respective
transaction:
a) Company
b) Market
c) Society
260. Introverted strategy based on:
a) Risk mitigation
b) Strategy
c) Efficiency
261. The word ‘Ecology’ derived from
a) Latin
b) Greek
c) Persian
262. Ecology means:
a) Business relations
b) House or living relations
c) Enemy
263. Audit committee comprising of
a) Three board member
b) Five board member
c) Seven board member
d) Nine board member
264. Members of audit committee are
a) Independent executive directors
b) Independent non executive directors
c) Chairman of company
d) None of Above
265. The chairman of audit committee must be
a) Do-facto director
b) Shadow director
c) INED
d) Alternate director
266. Directors pay is generally divided into
a) Two segments
b) Four segments
c) Six segments
d) Eight segments
267. Performance based salary not include
a) Cash bonus
b) Free share
c) Share options
d) Low motivation
268. Audit committee draws up its agenda on
a) Quarterly basis
b) Half yearly
c) Annual basis
d) After three years
269. The chairman of AC must complete formal self evaluation
a) Annually
b) Monthly
c) Weekly
d) Daily basis
270. Audit Committee is an
a) Executive body
b) Non executive body
c) A body corporate
d) None
271. Role of Audit committee is to
a) Advise the Board on efficiency
b) Advise shareholders only
c) Maintenance of books of accounts
d) Carry out audit
272. The only committee that must legally be formed is
a) Nomination committee
b) Add hoc committee
c) Executive committee
d) Audit committee
273. Disadvantage of forming specialized committees is
a) Directors able to get impartial
b) Low work load on directors
c) Time and cost
d) Board get specialized information
274. . …………………is a public accountant who conducts audits, reviews and
other work for his or her clients.
a) Director
b) External auditor
c) Chairman
d) Shareholder
275. Basis of remuneration director included……….
a) Fixed salary
b) Performance based pay
c) a & b both
d) None of these
276. Executive committee also known as………….
a) Non executive committee
b) Directors committee
c) Special committee
d) None of these
277. Advantages of executive committee are………
a) It reduce work load
b) It studies the issues
c) a & b both
d) None of these
278. Which committee doses not have any executive powers?
a) Executive committee
b) Remuneration committee
c) Compliance committee
d) HOC committee
279. ………….. Often set up when some major negotiations with workers union or
government or some external party are to be carried out.
a) Investigation Committee
b) Negotiation Committee
c) Project Committee
d) Employee Compensation
280. ………………. Often set up when a company plans to undertake a major
project or make a major acquisition.
a) Investigation Committee
b) Negotiation Committee
c) Project Committee
d) Employee Compensation
281. Too high bonus promotes:
a) Short term view
b) Dishonesty
c) Greed
d) All
282. CCC recommends ratio……….
a) 2:2
b) 3:2
c) 4:2
d) 1:2
283. Mcqs of chapter#5 COMMITTEES OF BOARD
284. BOD is a _______ body.
a) Executive b) Non executive c) popular d) special
285. BOD meets no more than ______ times in a year
a) 2 or 3 b) 4 or 5 c) 6 or 7 d) 8 or 9
286. The time at the disposal of directors is rather ______
a) Unlimited b) limited c) private d) public
287. Some of these committees may be required by _____ to be formed
a) Resolution b) memorandum c) law d) report
288. The directors are able to get
a) Impartial b) partial c) convenient d) stable
289. The reversal of roles is against the spirit of ______ governance
a) Bad b) ugly c) beautiful d) good
290. Committees help to improve the ______ of governance at a company
a) Finance b) quality c) functions d) meeting
291. The workload of _______ is reduced
a) Manager b) accountant c) directors d) CEO
292. The _______ work is done by committee
a) Financial b) documentation c) detailed d) summarized
293. Board receives a ________ report
a) Summarized b) detailed c) financial d) annual
294. This shouldn't result in dilution of ______ of board
a) Function b) powers c) issues d) problem
295. Board retains the power to make final _______
a) Report b) prospectus c) decision d) management
296. With the indications of ______ consultants in such committees the board can get
more detailed work
a) Inside b) outside c) specialized d) professional
297. Board committees are however like
a) Fireflies b) daffodils c) firearms d) worms
298. They defend the company and protect the ______ of stakeholder
a) Interest b) capital c) issues d) rights
299. Committees provide them an excellent means of
a) Capital b) report c) escape d) thinking
300. Board committees are often not
a) Parallel b) competent c) improved d) intellectual
301. Board committees often become
a) One man show b) collective c) parallel d) none of these
302. An effective committee comprises of _____ members
a) 3 b) 6 c) 4 d) 5
303. Board committees are often used by the _____ management
a) Good b) real c) financial d) project
304. Code of CG issued by
a) SECP b) KSE c) NCB d) MCB
305. Committee that must be _____ formed
a) Socially b) legally c) personally d) financially
306. Some companies combine the ______ of two or more committees
a) Remuneration b) powers c) functions d) report
307. Many companies have only one _______ committee
a) Remuneration b) nomination c) audit d) Adhoc
308. Compliance committee are often assigned to _____
a) Audit b) remuneration c) nomination d) none
309. Most countries require ______ companies to form an audit committee
a) Private b) public c) listed d) private limited
310. Audit committee comprises of ______ members
a) 1 or 2 b) 2 or 3 c) 3 or 4 d) 4 or 5
311. Audit committee members are
a) Free b) responsible c) independent d) dependent
312. No _______ director is made a member of audit committee
a) Independent b) executive c) chairman d) general
313. USA law require at least ___ member of AC must have financial expertise
a) 1 b) 2 c) 3 d) 4
314. AC can however get ______ professional to assist its members
a) Inside b) outside c) general d) special
315. Liaison with _______ auditors of the company
a) Outside b) inside c) public d) private
316. AC should _______ the qualifications
a) Check b) suggest c) investigate d) report
317. It enables the AC to explain the matters to the
a) CEO b) BOD c) CFO d) GM
318. The law requires certain disclosures in the
a) Balance sheet b) CGS c) financial statements d) income statement
319. Internal auditor is a part of the _______ team
a) Management b) decision making c) planning d) organizing
320. The AC can inform the board about any
a) Strength b) weakness c) profit d) loss
321. AC is responsible for overseeing all such
a) Statements b) procedure c) documents d) report
322. The BOD depends on the _______ committee to remain aware of risk management
a) Remuneration b) audit c) nomination d) AdHOC
323. Determination of suitable measure for protecting the assets of ______ company
a) Private b) public c) listed d private limited
324. Remuneration and nomination committee comprise only _______ director
a) Non executive b) executive c) internal d) external
325. Formalization of finding suitable
a) Creditors b) investors c) directors d) managers
326. Succession planning of directors and senior officials including
a) CEO b) manager c) chairman d) GM
327. Director's remuneration is technically approved by
a) Manager b) Owner c) stakeholder d) shareholder
328. Director's pay is generally divided into ___ segments
a) 2 b) 3 c) 4 d) 5
329. Board members are very ____ people
a) Bossy b) friendly c) sharp d) busy
330. Compliance committee is often set up by
a) CEO b) owner c) BOD d) manager
331. ADHOC committee oversight over company ____ function
a) Financial b) documentation c) human resource d) project
332. _____ committee granted powers to make a decision
a) Executive b) non executive c) chairman d) investigation
333. _____ in the form of share options
a) Package b) Bonus c) salary d) profit
334. Property of the company belongs to.
a) Company
b) Share holders
c) Members
d) Promoters
Answer: (a)
335. Each share of the company has a value.
a) Big nominal value
b) Zero value
c) Small nominal value
d) None of this
Answer: (c)
336. A person who purchases common stock of a corporation is known as:
a) Preferred stockholder
b) Creditor
c) Bond holder
d) Shareholder
Answer: (d)

337. Shareholder being a separate entity from.


a) Management
b) Company
c) Promoter’s
d) Board of Directors
Answer: (b)
338. Transfer of shares in the company is
a) Restricted
b) Freely transferable
c) Prohibited
d) None of these
Answer: (b)
339. Generally Company Life is
a) Limited life
b) Indefinite life
c) Fixed time Life
d) Situation does not arise
Answer: b)
340. A company considered as a
a) Legal Person
b) Illegal person
c) Gov. Property
d) None of above
Answer: (a)
341. Directors are selected by
a) Shareholders
b) Stakeholders
c) Promoters
d) Creditors
Answer: (a)
342. Management are separated from
a) Stakeholders
b) Owners
c) Creditors
d) Debtors
Answer: (b)
343. There are essentially types of Company
a) 2 b) 3
c) 4 d) 5
Answer: (a)
344. Which company shares can be freely transferable
a) Private Company
b) Public Company
c) Both (a) & (b)
d) None of the
Answer: (a)
345. Minimum number of members in case of public company
a) 1 b) 2
c) 5 d) 7
Answer: (d)
346. Minimum number of members in case of private company is
a) 1 b) 2
c) 3 d) 5
Answer: (2)
347. Maximum no. of members in case of private company is
a) 50 b) 100
c) 150 d) 200
Answer: (a)
348. Maximum no .of members in case of public company is
1) 0 b) unlimited
c) 50 d) 100
Answer: (b)
349. . Liability of a member in case of a private company is
a) Limited
b) Unlimited
c) Both (a) or (b)
d) None of the above
Answer: (c)

350. Minimum no. of Directors in case of a public company is __________


a) 1 b) 2
c) 3 d) 4
Answer: (c)
351. The liability of members if company is limited by guarantee.
a) Unpaid value of shares
b) Guarantee amount
c) Unlimited liability
d) None of the above
Answer: (b)
352. The liability of members if company is limited by shares
a) Unpaid value of shares
b) Guarantee amount
c) Unlimited liability
d) None of the above
Answer: (a)
353. Hierarchy of a company comprise of the
a) Two Stages b) Five Stages
c) Four Stages d) Six Stages
Answer: (c)
354. Decision made by a company are affect
a) All stakeholders
b) Only Shareholders
c) Only Customer
D) None of the above
Answer: (a)
355. Corporate Governance as the ……… used to control and direct the affair of a
corporate body
a) Mechanism
b) Decision
c) idea
d) Group
Answer: (a)
356. According to The Cadbury Report (1992) Corporate Governance as the
system by which companies are
a) Only Controlled
b) Tools and idea
c) Directed and controlled
d) None of the above
Answer: (c)
357. Management is answerable to
a) Shareholders
b) Stakeholders
c) Debtors
d) Board of Directors
Answer: (d)
358. Board of Directors is answerable to
a) Stakeholders
b) Debtors
c) Creditors
d) Shareholders
Answer: (d)
359. Employees hired by the board to operate the company’s affairs on a day to
day basis is called
a) Management
b) Debtors
c) Creditors
d) None of the above
Answer: (a)

360. Planning, Leading, Organization and control functions are involved in


a) Running any Organization
b) Running for a Specific Department
c) Running for a Specific Organization
d) None of the above
Answer: (a)
361. The board of directors responsible for governance of the
a) Country
b) Department
c) Company
d) Shareholders
362. Answer: (C)
363. How many corporate Sins found among directors and senior managers
a) 4 b) 6
c) 3 d) 2
Answer: (c)
364. Sloth is ……………to take risks and initiatives
a) Unwillingness
b) Willingness
c) Both (a) (b)
d) None of the above
Answer: (a)
365. Greed is the desire of managers to get the best for
a) For all
b) Only for Specific Persons
c) Themselves
d) Both (a) (c)
Answer: (c)
366. ………….. Is a tendency to refrain from doing anything so as to displease a
boss, or investors?
a) Fear
b) Greed
C) Sloth
d) None of the above
Answer: (a)
367. Agency theory covers only the
a) Principal Relationship
b) Agent-principal Relationship
c) Both (a) (b)
d) None of the above
368. Answer: (b)
369. How much types of Approaches
a) 4 b) 3
b) 5 d) 2
370. Answer: (b)

371. How many Key issue of Corporate Governance


a) 5 b) 4
C) 3 d) 2
Answer: (a)
372. Which approach is most suitable?
a) Stakeholders approaches
b) Shareholders approaches
c) English approaches
d) None of the above
Answer: (b)
373. Financial reporting includes the ……….
a) Accuracy and reliability
b) Reliability
c) Both (a) (b)
d) None of the above
Answer: (a)
374. From mid-1970’s a lot of debate on that corporate governance is field of
study in
a) Developed economic
b) Developing economic
c) Only Specific part
d) Both (a) (b)
Answer: (d)
375. 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
376. Answer: (a)
377. 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
378. Answer: (b)
379. 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)
380. The Cadbury report was published in
USA b)UK
c) UAE d) India
Answer: (b)

381. The Cadbury report describe as the ………..in thinking of Corporate


Governance
a) Basic tools
b) Landmark
c) Both (a) (b)
a. None of the above
Answer: (b)
382. Myners Report was Published in
1992 b) 1994
c) 1995 d) 1999
Answer: (c)
383. Green bury Report was published in
a) 1992 b) 1995
c) 1993 d) 1998
Answer: (b)
384. Green bury Report was dealt with the
a) Stakeholders remuneration
b) Shareholders remuneration
c) Promoters remuneration
d) Directors remuneration
Answer: ( d)
385. UK issued a Combined Code of Corporate Governance in
a) 1999 b) 1998
c) 1993 d) 1996
Answer: (b)

386. 11. This combination Code was applied on


a) All UK listed Companies
b) All USA listed Companies
c) All Germany listed Companies
d) Both (a) (b)
Answer: (a)
387. 12. This Combination code which applied on all UK companies was revised
in
a) 2006 b) 2005
c) 2003 d) 2001
Answer: (c)
388. 13. In 1997, the East Asian financial crisis saw the Economic of
a) Germany, America
b) Turkey, UAE, Australia
c) Pakistan, India, Iran
d) Thailand, Indonesia, South Korea,
Answer: (d)
389. 14. The massive bankruptcies and criminal malfeasance of Enron and
WorldCom in
a) In the early, 2000’s
b) In the early, 2001’s
c) In the early, 2004’s
d) In the early, 2003
390. Answer: (a)

391. 15. The Surbanes-Oxley Act of


a) 2003 b) 2002
c) 2007 d) 2004
Answer: (b)
392. 16. In Pakistan, Securities and Exchange Commission of Pakistan issued a
Code of
a) Corporate governance in 2002
b) Corporate governance in 2003
c) Corporate governance in 2005
d) Corporate governance in 2006
Answer: (a)
393. 17. Boards were generally ineffective and played into the hands of
a) Shareholders
b) Stakeholders
c) Debtors
d) Executive directors
Answer: (d)
394. 18. Managers awarded themselves huge bonuses and stock options, often
at the expense of the
a) Shareholders
b) Stakeholders
c) Both (a) (b)
d) Board of directors
395. Answer: (a)

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

422. Who is the shareholder?


a) Manager of a company
423. b )Auditor of a company
424. c) Employee of a company
425. d) Who has own shares in a company
426. Answer: (d)
427. The rights, powers and obligations of the shareholders depend s on the
base of
a) Qualification
b) Working ability
c) Shares held by him in the company
d) None of the above
428. Answer: (c)
429. …………Types of shares widely used in Pakistan.
a) Ordinary Shares
b) Extra Ordinary Shares
c) Primary Shares
430. d )None of the above
431. Answer: (a)

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)

449. 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)
450. 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)
451. 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)
452. 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)
453. Corporate shareholders are generally
a) Well organized
b) Bad Performance
c) Mid Performance
d) None of the above
Answer: (a)
454. 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)
455. Pension Funds is an example of
a) Corporate shareholders
b) Private company
c) Institution investor
d) Institution shareholders
Answer: (d)
456. 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)
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)

You might also like