Corporate Governance Quiz | Corporate Governance Online Test for Practice

31. The principle of “Accountability” in corporate governance requires that:

1. The company’s board is held responsible for the performance
2. All stakeholders have equal voting rights
3. Shareholders make day-to-day decisions
4. The company remains transparent about its operations

32. What is the “double taxation” issue in corporate governance?

1. Tax on corporate earnings and on dividends to shareholders
2. Tax on executive salaries and profits
3. Tax on imports and exports
4. Tax on mergers and acquisitions

33. Which of the following is a potential consequence of poor corporate governance?

1. Increased investor confidence
2. Higher stock prices
3. Legal penalties and loss of reputation
4. Reduced market share

34. The role of the board of directors in corporate governance is to:

1. Oversee company performance
2. Manage day-to-day operations
3. Handle sales and marketing
4. Conduct audits

35. In the context of corporate governance, the term "fiduciary duty" refers to:

1. The legal responsibility to promote short-term profits
2. A commitment to prioritize stakeholder interests
3. The responsibility to avoid conflicts of interest
4. All of the above

36. The "Agency Problem" in corporate governance arises due to:

1. Differences between owners and managers
2. Over-regulation by the government
3. High tax rates
4. External market pressures

37. What does the term "fiduciary responsibility" refer to in corporate governance?

1. Acting in the best interest of the company and its shareholders
2. Managing the company’s financial assets
3. Ensuring competitive advantage
4. Hiring the most skilled workforce

38. Which of the following is an example of "insider trading"?

1. A director buys stock based on confidential company information
2. An investor buys stock based on public information
3. A company announces a new product
4. A company pays dividends

39. In the context of corporate governance, what is "diversification"?

1. Expansion into new markets
2. Inclusion of varied skills and experiences in decision-making
3. Maximizing shareholder wealth
4. Reduction of corporate taxes

40. Which of the following are the stakeholders in corporate governance?

1. Shareholders and employees
2. Customers and competitors
3. Government and regulatory bodies
4. All of the above