Examination
Paper
IIBM
Institute of Business Management 1
IIBM
Institute of Business Management
Examination
Paper MM.50
Corporate
Governance
Section
A: OBJECTIVE TYPE (20 marks)
• This
section consists of Multiple choice questions.
• Answer
all the questions.
• Questions carry 1
mark each.
1. In the second version of
McKinsey’s model called “the Central model” governance chain is
represented by
a. Well-developed equity
market & dispersed ownership
b. Underdeveloped equity
market & concentrated ownership
c. Well-developed equity
market & concentrated ownership
d. Underdeveloped equity
market & dispersed ownership
2. Corporate governance
refers to a combination of law, rules, regulations and
a. Value
b. Wealth
c. Voluntary practices
d. Customer Satisfaction
3. ____________, is one of
the major tools. Corporations use to direct persuasive communication to
target buyers & the
public.
a. Advertising
b. Media
c. Press
d. None
4. Policy adopted by the
monetary authority with respect to the supply of money is called
a. Monetary Policy
b. Fiscal Policy
c. Budgetary Policy
d. Economic Policy
5. Cash reserve requirements
refer to the
a. Purchase & Sale of
government securities & other approved securities by the Central bank.
b. Changes in bank rate by
the Central Bank
c. That portion of bank’s
total cash reserves which they are statutorily required to hold with the
RBI.
Examination
Paper
IIBM
Institute of Business Management 2
d. The particular level of
liquid ity maintained by commercial banks.
6. This committee was set up
in January 1995 to identify good practices by the confederation of
British Industry (CBI)
a. The Paul Ruthman Committee
b. The Greenbury Committee,
1995
c. Cadbury Committee, 1995
d. The Hampel Committee,1995
7. ______________, plays a
significant role in the growth of the corporate sector by providing them
finance for their Operations.
a. Investors
b. Bank
c. Organization
d. None
8. The first stock market
scam was one which involved both the bond and equity markets in India.
a. MNC’s efforts at
Consolidation of ownership, 1993
b. Vanishing Companies Scam,
1993-94
c. M. S. Shoes, 1994
d. Harshad Mehta scam, 1992
9. Debt purchasers provide
finance in return for a promised stream of payments & a variety of other
convenants pertaining to
corporate behavior, such as the value and risk of corporate assets. These
are called
a. Concentrated Debt
b. Diffused Debt
c. Creditor Incentives
d. Debt Collection
10. A person having control
over the direction, conduct, management or superintendence of then
affairs of a company is
called
a. Director
b. Co- director
c. Board members
d. None
11. A director who is not
duly appointed but acts as a director is known as a
a. Fraudulent Person
b. De Facto
c. De Jure
d. None
12. This type of auditors are
usually referred to as a CPA (Certified Public Accountants) firms
Examination
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IIBM
Institute of Business Management 3
a. Internal auditors
b. Independent auditors
c. Government auditors
d. None
13. To introduce corporate
governance practices in the banking sector the recommendations of the
working group of directors of
financial Institutions known as the
a. Ganguly Group
b. Policy Implication
c. Government Control
d. Withdrawal effects
14. It is a manipulative
method where one buy the power or the influence of others persons in order
to satisfy his selfish need.
a. Coercion
b. Tax Evasion
c. Bribery
d. Insider Trading
15. This model supports the
idea of multiple interests of stakeholders rather than shareholders interest
alone
a. The Social Entity Theory
b. Trusteeship Model
c. The Pluralistic Model
d. Social Responsibility
16. This policy was released
in August by the Ministry of Environment & Forests (MOEF) for
Public discussion
a. The National Environment
Policy, 2004
b. Draft Policy
c. Biodiversity Conservation
d. Forest & wildlife
Conservation
17. Out of the following
which Committee appointed to examine all current Capital market
regulations & to suggest
amendments to them
a. SEBI
b. Dhanuka Committee
c. Primary Market Reforms
d. None
18. Out of the following
which one sentence is the true
a. It lays down the framework
for creating long-term trust between companies & the external
provides of capital
b. It rationalizes the
management and monitoring of risks a firm faces globally
Examination
Paper
IIBM
Institute of Business Management 4
c. It does not limits the
liability of the top management 7 directors by carefully articulating the
decision making process
d. It never ensures the
integrity of financial reports.
19. Out of the following
which is the responsibility of an Auditor
a. Whether loans &
advances made by the company on the basis of security have been properly
secured.
b. Whether loans &
advances made by the company have been shown as deposits.
c. Whether personal expenses
have been charged to revenue account
d. He has to ensure that his
work involves exercise of judgment.
20. This theory assumes that
managers are basically trustworthy and attach significant value to their
own personal reputation
a. Agency Theory
b. Stewardship Theory
c. Stakeholder Approaches
d. Sociological Theory
SECTION B: Short Notes (10 marks)
• This
section consists of short notes.
• Answer
all the questions.
• Each
Short Note carries 5 marks.
1. What is clause 49?
2. Explain Board of Directors
& Corporate Governance?
SECTION C: APPLIED THEORY (20 marks)
• This
section consists of Long Questions.
• Answer
all the questions.
• Each
question carries 10 marks.
• Detailed
information should from the part of your answer (Word limit 150 to 200 words).
END OF
SECTION B
END OF
SECTION A
Examination
Paper
IIBM
Institute of Business Management 5
1. Banks are also using
concept of Corporate Governance. Explain why Corporate Governance is
widely used in Banks. Also
state few sound Corporate Governance Practices.
2.
What
is ethics & state why ethics is necessary in Business and also state the
importance and need
of business ethics?
-----------------------------------------------------------***----------------------------------------------------------------
END OF
SECTION C
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