32. Exam Paper for Corporate Governance in BBA (With Answers)

,Exam Paper for Corporate Governance in BBA (With
Answers)


PAPER # 1
**Instructions:**
- This exam paper consists of multiple-choice questions.
- Select the most appropriate answer for each question.
- Mark your answers on the provided answer sheet.
- There is only one correct answer for each question.


**Section A: Corporate Governance Principles**


1. What is the primary objective of corporate governance?


a) Maximizing shareholder wealth


b) Maximizing customer satisfaction


c) Maximizing employee satisfaction


d) Maximizing CEO compensation


2. Which of the following is NOT a key element of the "Three Lines of Defense" model in
corporate governance?


a) The first line - operational management


b) The second line - risk management and compliance functions


c) The third line - external auditors and regulators




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, d) The fourth line - shareholders


3. Which principle of corporate governance emphasizes the importance of providing
timely and accurate financial information to stakeholders?


a) Transparency


b) Fairness


c) Accountability


d) Responsibility


4. The "business judgment rule" in corporate governance protects directors and officers
from liability if they:


a) Make informed decisions in good faith


b) Always maximize shareholder profits


c) Ignore the interests of minority shareholders


d) Fail to disclose their personal financial interests


**Section B: Corporate Governance Mechanisms**


5. Which corporate governance mechanism is designed to align the interests of
managers with those of shareholders?


a) Stock options


b) Golden parachutes




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