BAcc 6 Prelim Exam

Prelim Exam-BACC 6 - Corporate
Governance and Social Responsibility

I. MULTIPLE CHOICE. Please read and comprehend the questions carefully.
1. It is a process of administering a company like a monarchial state which installs its

own customs, laws, and policies from the highest to the lowest levels. *
Corporate Social Responsibility
Corporate Governance
Business Ethics
Business Responsibility
2. The first version of the UK Corporate Governance Code (the Code) was produced in
what year? *
1995
1994
1990
1992
3. The following are the rights of the shareholders, except: *
sell their shares
sue for a violation of fiduciary duty
vote on those nominated for the board
none of the choices
4. According to this theory, the behavior of the steward is collective, because the
steward seeks to attain the objectives of the organization. *
stakeholders theory
property rights theory
stewardship theory
shareholders theory
5. Refers to the ethical concept that addresses the outcome of business decisions,
trends, profits, etc. and its collective impact on all stakeholders. *
stakeholders theory
property rights theory
stewardship theory
shareholders theory
6. The corporate governance was first developed on the Companies Act of 1956 by
what country? *
Germany
India
China
USA
7. Plays a pivotal character in commanding the company’s management and business

blueprints to accomplish long-term value creation. *
Board of Directors
Management
Shareholders
Stakeholders
8. Leads the management of the company. It involves the aspects like strategic
planning, strategic management, and financial reporting. *
Board of Directors
Management
Shareholders
Stakeholders
9. It touches on the points of uniform and equal treatment of all the shareholders in
reference to receival of considerations regarding shareholdings. *
Transparency
Accountability
Fairness
Responsibility
10. They are accountable to the shareholders on behalf of the company regarding the
execution of responsibilities. *
Accountability
Transparency
Responsibility
Fairness
11. A company should reveal an informative piece of data about their activities to
shareholders and other stakeholders. *
Fairness
Responsibility
Transparency
Accountability
12. The following are the principles of corporate governance, except: *
communication
loyalty
immorality
commitment
13. Which of the following are the benefits of corporate governance? *

Gain a competitive advantage.
Builds morel, reputation, and a legacy
Provides a practical way of decision-making at a higher level.
all of the choices
14. This refers to the codes of values and principles that govern the action of a person,
or a group of people regarding what is right versus what is wrong. *
Competitive advantage
Social responsibility
Ethics
Corporate governance
15. The following are the advantages of ethical behavior, except: *
Build customer loyalty
Retain all employees
Positive work environment
Avoid legal problems

16. This occur when individuals must choose between taking actions that promote their
personal interests over the interests of others or taking actions that don’t. *
Conflict of loyalty
Conflict of interest
Conflict of honesty
None of the choices
17. The duty to another person or organization could prevent the trustee from making a
decision only in the best interests of the charity. *
Conflict of interest
Conflict of honesty
Conflict of loyalty
None of the choices
18. Based from the Youtube video on Conflict of Interest, in business and law, having a
fiduciary responsibility to someone is known as having a *
duty of responsibility
duty of honesty
duty of interest
duty of loyalty
19. This is the practice of giving favors to relatives and close friends in matters of hiring,
promotion, transfer, or termination. *
Nepotism
Relativism
Self-dealing
Excess compensation
20. The other term for shareholder theory is: *
company theory
agency theory
stockholder theory
none of the choices
II. IDENTIFICATION. Please read and comprehend the statements below.

21. They are the people who become part owners of the company by buying equity
stock. *
1. Shareholders
2. Stakeholders
22. They may be directly or indirectly affected by what happens in the company. *
1. Shareholders
2. Stakeholders
23. They are the people who have interest in the company either directly or indirectly. *
1. Shareholders
2. Stakeholders
24. They are affected directly by the monetary performance of the company. *
1. Shareholders
2. Stakeholders
25. Generally, this focuses on the external factors/forces of the company. *
1. Corporate Social Responsibility
2. Corporate Governance
26. It focuses on the internal factors/forces of the company. *
27. Viewed simply as control rights over physical and human assets. *
1. Property Rights Theory

2. Stewardship Theory
28. In business, manager's decision-making involves the so-called Three-E Equation.

What does the three E means? *
1. Effectiveness, Efforts, Efficiency
2. Efficiency, Effectiveness, Ethics
29. It is the collaboration of well -defined rules, processes and laws by which functions
and regulations of business take place. *
30. Taking company decisions which won't harm others. *

III. FILL IN THE BLANKS. Please fill-in the following statements.
31-32. The first version of the UK Corporate Governance Code (the Code) was
produced in 1992 by the *
CADBURY COMMITTEE
33-34. A good corporate governance practice gives rise to a strict compliance

________. *
CULTURE
35-36. Any person, a company, or any institutions that owns at least one share in a
company. *
SHAREHOLDER
37-38. Managers, employees, and owners are considered as ________ stakeholders. *
INTERNAL
39-40. Suppliers, government, and customers are considered as ________
stakeholders. *
EXTERNAL
IV. TRUE OR FALSE. Please comprehend well each statement.
41. Governance of companies is the responsibility of the board of directors. *
True
False
42. Good governance means that your business’s processes are aimed at producing
results which meet the needs of society and organizational prosperity while making
strategic use of its available resources. *
True
False
43. The firm is a system of shareholders operating within the smaller system of the host
society that provides the necessary legal and market infrastructure for the firm’s
activities. *
True
False
44. The basis of agency theory is the self-interested utility-maximizing motivation of

individual actors *
True
False
45. Corporate social responsibility looks at how an organization is managed in order to

achieve its objectives. *
True
False
46. It is imperative for all managers to have a well-established framework and a belief
system to guide the decision-making process. *
True
False
47. Good governance means that your business’s processes are aimed at producing
results which meet the needs of society and organisational prosperity while making
strategic use of its available resources *
True
False
48. An organisation that represents instability and unreliability increases its chances of
attracting premium investors, as well as increasing their opportunity to borrow funds at a
better rate. *
True
False
49. Rapid access to information and good communication among the members of a
company leads to the formulation of robust strategies. *
True
False
50. BONUS! Just type YEHEY! *
YEHEY!

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Prelim Exam-BACC 6 - Corporate

Governance and Social Responsibility

1. It is a process of administering a company like a monarchial state which installs its

Corporate Social Responsibility

sell their shares

sue for a violation of fiduciary duty

vote on those nominated for the board

none of the choices

property rights theory

7. Plays a pivotal character in commanding the company’s management and business

12. The following are the principles of corporate governance, except: ​*

13. Which of the following are the benefits of corporate governance? ​*

Builds morel, reputation, and a legacy

Provides a practical way of decision-making at a higher level.

all of the choices

15. The following are the advantages of ethical behavior, except: ​*

Build customer loyalty

Retain all employees

Positive work environment

Avoid legal problems

None of the choices

None of the choices

20. The other term for shareholder theory is: ​*

none of the choices

II. IDENTIFICATION. Please read and comprehend the statements below.

25. Generally, this focuses on the external factors/forces of the company. ​*

1. Corporate Social Responsibility

26. It focuses on the internal factors/forces of the company. ​*

1. Corporate Social Responsibility

1. Property Rights Theory

28. In business, manager's decision-making involves the so-called Three-E Equation.

1. Effectiveness, Efforts, Efficiency

2. Efficiency, Effectiveness, Ethics

2. Corporate Social Responsibility

30. Taking company decisions which won't harm others. *

2. Corporate Social Responsibility

33-34. A good corporate governance practice gives rise to a strict compliance

37-38. Managers, employees, and owners are considered as ________ stakeholders. *

IV. TRUE OR FALSE. Please comprehend well each statement.

41. Governance of companies is the responsibility of the board of directors. ​*

44. The basis of agency theory is the self-interested utility-maximizing motivation of

45. Corporate social responsibility looks at how an organization is managed in order to

50. BONUS! Just type YEHEY! ​*

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12. The following are the principles of corporate governance, except: *

13. Which of the following are the benefits of corporate governance? *

15. The following are the advantages of ethical behavior, except: *

20. The other term for shareholder theory is: *

25. Generally, this focuses on the external factors/forces of the company. *

26. It focuses on the internal factors/forces of the company. *

41. Governance of companies is the responsibility of the board of directors. *

50. BONUS! Just type YEHEY! *