CORPORATE GOVERNANCE, BUSINESS ETHICS, RISK MANAGEMENT AND INTERNAL CONTROL
PRETEST
GOVERNANCE
PRETEST UNIT
UNIT I:
1: THE
THE CORPORATE
CORPORATE GOVERNANCE
True or False
10 of 10 points
Please read the following statement and choose whether the statement is true or false.
1.
Governance means the process of decision-making and the process by which
decisions are implemented or not implemented through the existence of power or
authority of the country and/ or organizations.
• True
o False
2.
Good governance requires that institutions and processes try to serve the needs of
stakeholders within a unreasonable time frame.
o True
• False
3.
Accountability is a key requirement of good governance only for governmental
institutions.
o True
• False
4.
Good corporate governance is all about controlling one's business and so is
irrelevant for all organizations whatever size or structure.
o True
• False
5.
Good governance means that processes and institutions produce results that met the
needs of society while making the best use of resources at their disposal the concept
of efficiency in the context of good governance also covers the sustainable use of
natural resources and the protection of the environment.
• True
o False
ANSWER KEY
1
CORPORATE GOVERNANCE, BUSINESS ETHICS, RISK MANAGEMENT AND INTERNAL CONTROL
6.
One of the basic principles of corporate governance to safeguard integrity in
financial reporting and have a structure to independently verify and safeguard the
integrity of the company's financial reporting.
• True
o False
7.
Firms with weak corporate governance structure are seen to have lower valuation
attached to their shares by businessmen.
• True
o False
8.
The fundamental aim of corporate governance is to enhance shareholders’ value and
protect the interest of other stakeholders by improving the corporate performance
and accountability.
• True
o False
9.
Effective corporate governance is transparent, protect the rights of shareholders and
includes only strategic risk management.
o True
• False
10.
Effective corporate governance is concerned in both the long-term earning potential
as well as actual short-term earnings and holds directors accountable for their
stewardship of the business.
• True
o False
ANSWER KEY
2