CNV3-I1-16-Business Quiz

1.      The 'Cadbury Committee' was set up in May 1991 with a view to overcome the huge problems of scams and failures occurring in the corporate sector worldwide in the late 1980s and the early 1990s. It was formed by the Financial Reporting Council, the:

(a)   London bar School

(b)   Palace of Westminster, central London

(c)   London Stock of Exchange

(d)   House of Lords, London

2.      Cadbury Committee report is divided into four distinct sections. Identify the incorrect section:

(a)   Role of Board of Directors, duties of board and its compositions

(b)   Role of Non-Executive Directors

(c)   Dealing their remunerations

(d)   Listing and Delisting of shares in the stock exchange

3.      SEBI had constituted a Committee on Corporate Governance to promote and raise the standard of Corporate Governance in respect of listed companies under the chairmanship of:

(a)   Kumar Mangalam Birla

(b)   Rajashree Birla

(c)   Ratan N Tata

(d)   Azim Premji

4.      The primary objective of SEBI’s committee was to view corporate governance from the perspective of the investors and shareholders and to prepare a ‘Code’ to suit the Indian corporate environment. The committee divided the recommendations into two categories, namely, mandatory and non- mandatory.  The non-mandatory recommendations DOES NOT include:

(a)   Postal ballot covering critical matters like alteration in memorandum

(b)   Sale of whole or substantial part of the undertaking

(c)   Corporate restructuring

(d)   Composition of board of directors should be optimum combination of executive & non-executive directors.

5.      Which of the following is NOT a dimension of Corporate Social Responsibility?

(a)   Setting boundaries of learning, accountability and responsiveness

(b)   Building activities which are NOT based upon learning

(c)   Creating measures that validate and make knowledge effective, and form the basis for decision making and action

(d)   Institutionalizing trust in ways that create a virtuous circle of practice and further engagement with stakeholders.

6.      According to revised Clause 49 India Company Act, 2013 a whole-time director cannot serve as independent director in more that ---- listed companies.?

(a)   Seven

(b)   Five

(c)   Three

(d)   One

7.      Identify which is NOT a theory of Corporate Governance:

(a)   Agency Theory

(b)   Stewardship Theory

(c)   Transaction Cost Theory

(d)   Capital Structure Theory

8.      Fiduciary duty in Corporate Governance refers to:

(a)   Providing identity, usually by making it legal

(b)   Relationship based on total trust, good faith and honesty

(c)   Controlling economy in India where licenses and permits are granted for business deals

(d)   Grant of authority and right by a sovereign, legislature, or other authority to conduct business

9.      In which country Sarbanes-Oxley Act enacted?

(a)   UK

(b)   USA

(c)   Canada

(d)   Russia

10.  The cross ownership of shares is not a part of business culture of which country?

(a)   Japan

(b)   Germany

(c)   Sultanate of Brunei

(d)   United States