School of Distance Education
UNIVERSITY OF CALICUT
School of Distance Education
CORPORATE GOVERNANCE AND BUSINESS ETHICS
I Semester – Paper II
M.Com. (2019 Admn.)
Multiple Choice Questions
1. The framework for establishing good corporate governance and accountability was originally
setup by
a) Nestle committee b) Rowntree committee
c) Cadbury committee d)Thornton committee
2. Which of the following is not one of the underlying principles of the corporate governance
combined code of practice?
a) Accountability b) Openness
c) Acceptability d) Integrity
3. External audit of the accounts of a limited company is required?
a) Because it is demanded by the company’s bankers
b) By the companies act 2006
c) At the discretion of the shareholders
d) To detect fraud
4. Directors responsibilities are unlikely to include
a) a duty to keep proper accounting records
b) a fiduciary duty
c) a duty to propose high dividends for shareholders
d) a duty of care
5. A company may become insolvent if it
a) makes a loss
b) has negative working capital
c) cannot meet its budgeted level of profit
d)cannot pay creditors in full after realisation of its assets
Corporate Governance and Business Ethics Page 1
, School of Distance Education
6. Fraudulent trading may be
a) a criminal offence committed only by directors of a limited company
b) a civil and a criminal offence committed by an employee
c) a civil and a criminal offence committed only by directors of a limited company
d) a civil offence committed by an employee
7. A director of a limited company may not be liable for wrongful trading if he or she
a) increased the valuation of its inventories to cover any potential shortfall
b) brought in some expected sales from next year in to the current year
c) took every step to minimise the potential loss to creditors
d) introduce into the balance sheet an asset based on a valuation of its brands sufficient to meet
any shortfall
8. Disqualification of directors may result from breaches under the
a) Health and Safety Act b) Financial Services Act
c) Sale of Goods Act d)Companies Act
9. According to clause 49 on independent directors. What should be minimum age of independent
director.
a)21 b)22 c) 23 d)24
10. who formed the ICGN?
a) European governments b) US share holders
c) Pension funds d)Stock markets
11. A company cannot issue redeemable preference shares for a period exceeding
a) 5 years b) 10 years c) 15 years d) 20 years
12. which one is the dimension(approach) of corporate social responsibility?
a) Corporate philanthropy
b) Stake holders priorities and sustainable development
c) Ethical business
d) All of the above
13. According to clause 49 on independent directors. What can be maximum tenure of
independent director.
a) 2 terms of 5 years each b) 3 terms of 5 years each
c) 2 terms of 10 years each d) 3 terms of 4 years each
Corporate Governance and Business Ethics Page 2
UNIVERSITY OF CALICUT
School of Distance Education
CORPORATE GOVERNANCE AND BUSINESS ETHICS
I Semester – Paper II
M.Com. (2019 Admn.)
Multiple Choice Questions
1. The framework for establishing good corporate governance and accountability was originally
setup by
a) Nestle committee b) Rowntree committee
c) Cadbury committee d)Thornton committee
2. Which of the following is not one of the underlying principles of the corporate governance
combined code of practice?
a) Accountability b) Openness
c) Acceptability d) Integrity
3. External audit of the accounts of a limited company is required?
a) Because it is demanded by the company’s bankers
b) By the companies act 2006
c) At the discretion of the shareholders
d) To detect fraud
4. Directors responsibilities are unlikely to include
a) a duty to keep proper accounting records
b) a fiduciary duty
c) a duty to propose high dividends for shareholders
d) a duty of care
5. A company may become insolvent if it
a) makes a loss
b) has negative working capital
c) cannot meet its budgeted level of profit
d)cannot pay creditors in full after realisation of its assets
Corporate Governance and Business Ethics Page 1
, School of Distance Education
6. Fraudulent trading may be
a) a criminal offence committed only by directors of a limited company
b) a civil and a criminal offence committed by an employee
c) a civil and a criminal offence committed only by directors of a limited company
d) a civil offence committed by an employee
7. A director of a limited company may not be liable for wrongful trading if he or she
a) increased the valuation of its inventories to cover any potential shortfall
b) brought in some expected sales from next year in to the current year
c) took every step to minimise the potential loss to creditors
d) introduce into the balance sheet an asset based on a valuation of its brands sufficient to meet
any shortfall
8. Disqualification of directors may result from breaches under the
a) Health and Safety Act b) Financial Services Act
c) Sale of Goods Act d)Companies Act
9. According to clause 49 on independent directors. What should be minimum age of independent
director.
a)21 b)22 c) 23 d)24
10. who formed the ICGN?
a) European governments b) US share holders
c) Pension funds d)Stock markets
11. A company cannot issue redeemable preference shares for a period exceeding
a) 5 years b) 10 years c) 15 years d) 20 years
12. which one is the dimension(approach) of corporate social responsibility?
a) Corporate philanthropy
b) Stake holders priorities and sustainable development
c) Ethical business
d) All of the above
13. According to clause 49 on independent directors. What can be maximum tenure of
independent director.
a) 2 terms of 5 years each b) 3 terms of 5 years each
c) 2 terms of 10 years each d) 3 terms of 4 years each
Corporate Governance and Business Ethics Page 2
