1. Which among the following is not correct for importance of Corporate Governance?

a.Disclosure,
b. Transparency,
c. Accountability
d. Stock price of the company
Ans. D

2. Which among the following is not an act to comply in Corporate Governance?

A. POCSO Act
B. Exchange Board of India (SEBI) Act
C. Foreign Exchange Regulation Act,
D. Competition Act 2002,

Ans. A

3. The First Phase of India’s Corporate Governance Reforms started in

a. 1996
b. 2000
c. 2003
d. 2013

Ans. A 1996

4. Which among the following is not coming under Five Pillars of Good Corporate Governance
in India?
a. Leadership
b. Effectiveness
c. Ownership
d. Remuneration
Ans. C. Ownership

5. The basic understanding of The agency Theory is

a. Owners are the run the firm by their money power
b. Managers run the firm
c. Owners hire the managers to run the firm on their behalf
d. None of these

Ans. C. Owners hire the managers to run the firm on their behalf.

6. Which of the following does not include in the duty of Loyalty of Board of Directors?
a. Avoiding conflicts of Interest
b. Privacy to director’s Interest
c. Corporate Opportunity Ahead of Personal
d. Confidentiality

Ans. B. Privacy to Director’s Interest

7. Every company should appoint a director who has stayed in India for a total Period of
not less than 182 days in the previous calendar year. This types of Directors are called
a. Executive Director
b. Resident Director
c. Independent Director
d. Alternate Director
Ans. B. Resident Director
8. Which among the following is not the monitoring duty of Board of Directors?
a. Return on Investment
b. Security of the plant
c. Dividend Policy
d. Social Accountability
Ans. B. Security of the plant

9. What among the following is true about the role and responsibility of CEO and Chairman of
Board of Director?
a. Both the Chairman and Chief Executive are collectively responsible for the
leadership of the Group
b. For promoting the highest standards of integrity and probity there is a clear and
effective division of accountability and responsibility between the Chairman and the
CEO.
c. No individual has unfettered powers of decision and control
d. All of the above are correct

10. The boards that fit visionary leadership possess which of the following characteristics?
a. Entrepreneurial spirit
b. Strategic decision makers 
c. Effective communicators
d. All of the above
Ans. D. All of the above
11. a policy document that clearly defines the respective roles, responsibilities and
authorities of the board of directors is called
a. Board Charter
b. Board Code
c. Board Code of Conduct
d. None of these
Ans. A. Board Charter
12. . A common requirement for a board quorum is for ----- of board members to be
present to conduct official business generally.
a. 1/3 of Board Members
b. ½ of Board members
c. 2/3 of Board members
d. None of the above
Ans. C. 2/3 of Board Members
13. Company wants Director’s Training requires following core skills to be developed.
 a. Familiarity with the methods and principles of Corporate Governance
b. Human resource management, including principles behind recruitment
c. Strong customer and personal service skills
d. All of the above
Ans. D. All of the above

14. “All stockholders shall have the right to subscribe to the capital stock of the
Company”, which right of shareholders it mention?
a. Right to Information
b. Power to Inspection
c. Pre-emptive Rights
d. Right to dividend
Ans. C. Pre-emptive Rights

15. “The shareholders shall have appraisal right or the right to dissent and demand
payment of the fair value of their shares”. Which right of shareholders it mention?
a. Right to Information
b. Appraisal Rights
c. Pre-emptive Rights
d. Right to dividend
Ans. B. Appraisal Rights

16. Role of Board of Directors in Managing Vendors Include:

a. Identifying turnaround times
b. Noting quality of work
c. Contract negotiation
d. All of the above
Ans. D. All of the above

17. Which of the following is not a committee for Insurance Governance by IRDAI?
a. Nomination/ Remuneration committee
b. Investment Committee
c. Risk management committee
d. Policy holder’s welfare committee
Ans. D. Policy Holder’s welfare committee

18. The telecom licenses shall be granted in three different categories, which is not one
among them
a. Unified License
b. Class License
c. Licensing through Authorisation 
d. Spectrum Allocation
Ans. D. Spectrum allocation
19. Response to risks usually takes one of the following forms, find the unwanted
position.
a. Avoidance
b. Mitigation
c. Acceptance
d. Uncertainty
Ans. Uncertainty
20. The enterprise risk management framework is geared to achieving an entity’s
objectives in four categories, which is not correct?
a. Strategic – high-level goals, aligned with and supporting its mission
b. Resources – effective and efficient use of its resources
c. Reporting – reliability of reporting
d. Compliance – compliance with applicable laws and regulations.
Ans. B. Recourses [ It should be Operational]
21. ASX Principles of Corporate Governance is applicable in which country?
a. South Africa
b. Singapore
c. Australia
d. UK
Ans. C. Australia
22. Legal regulation (including quasi-legal regulation), codes and best practice are
practised in which country?
a. South Africa
b. Singapore
c. Australia
d. UK
Ans. B. Singapore
23. King IV Report on Corporate Governance is practised in which country?
a. South Africa
b. Singapore
c. Australia
d. UK
Ans. A. South Africa

24. Both ‘CRISA’ and Investor stewardship are practised in which country?
a. South Africa
b. Singapore
c. Australia
d. UK
Ans. A. South Africa

25. Which country practises “comply or explain” approach” in corporate Governance.

a. South Africa
b. Singapore
 c. Australia
d. UK
Ans. D. UK
26. 20th Century created the concept of “Corporate Governance” in India? Which one is
not one of the reason:
a. There was degradation of value system
b. Introduction of Multinational Companies
c. Globalization of Indian Industries
d. None of these

Ans. D

27. Final draft of Corporate Governance Code by CII was introduced in the year
a. 1996
b. 1997
c. 1998
d. 1999

Ans. C 1998

28. N.R.Murty report of Corporate Governance in 2003 deals with –

a. Report of the Committee on Regulation of Private Companies and

Partnerships
b. Corporate Audit and Governance
c. SEBI Report on Corporate Governance
d. None of these

Ans. C. Sebi report

29. A director performs his duties in good faith and in a manner that he serves for the best
interest of the corporation, comes under which type of duty for a director?
a. Duty of Loyalty
b. Duty of Care
c. Duty of decision making
d. None of these
Ans. B. Duty of Care

30. The engagement of Non executive Director in as proposed in new draft, BOD should
be
a. Based on Interaction within a year for continuation
b. Based on no interaction within a year for continuation
c. No condition applied for continuation
d. None of the above

Ans. A. Interaction with a year

31. A BOD can appoint a director based on 1000 Shareholders or 1/10th of the total
shareholders is called
a. Non-executive Director
b. Executive Director
c. Shareholders Director
d. Non Residential Director
Ans. C. Shareholder’s Director
32. Any Individual can be appointed as Additional Directors by a company under section
161(1) of the New Act, this type of Directors are called:
a. Alternative Director
b. Additional Director
c. Shadow Director
d. None of the above

Ans. B. Additional Director

33. Board must use the company’s property for the long-run gain of the company, but not
for their personal use, this responsibility is
a. Faithfulness
b. Sincerity
c. Trusteeship
d. Directorship
Ans. C. Trusteeship
34. Who leads the communication programme with our stakeholders including
shareholders?
a. CEO of the Company
b. Chairman of the Company
c. MD of the Company
d. Chief Advisor of the Company
Ans. A. CEO of the Company
35. Understanding that their organizations operate in a fast-changing marketplace, comes
under which profile of Visionary Leadership in a company?
a. Future oriented
b. Entrepreneurial Oriented
c. Strategic Oriented
d. None of these
Ans. B. Entrepreneurial Oriented
36. A common requirement for a board quorum is - of board members to be present to
conduct official business, though the bylaws may state any number.
a. 1/4th
b. 1/2th
c. 1/3th
d. 2/3th

Ans. D. 2/3
37. All stockholders shall have the right to subscribe to the capital stock of the Company,
this rights of shareholders is called
a. Voting Right
b. Right to shareholders
c. Pre-emptive Rights
d. Inspection Right

Ans. C. Pre-emptive Rights

38. Which is not the main objective of any Investors Association?

a. To educate the investors
b. To Create awareness among investors
c. To protect the interest of the investors
d. To demand for Dividend
Ans. D. To demand for Dividend
39. Rights of lenders are protected by a document called :
a. Bond indenture
b. Letter of MOU
c. Both of the above
d. None of the above
Ans. A. bond Indenture

40. The Information Technology Act, 2000 is the predominant legislation for protection
of
a. Lenders of the company
b. Shareholders of the company
c. Customer of the company
d. BOD of the Company
Ans. C. Customer of the Company
41. In India, for prospective mergers and acquisitions, a minimum approval of - % of
shareholders is required
a. 50%
b. 70%
c. 75%
d. 80%

Ans. C. 75%

42. Related-party transactions are legitimate activities and serve practical purposes, which
among the following is not included in it?
a. They are recognized in corporate and taxation laws.
b. They have their own standards for accounting treatment.
c. Systems of checks and balances have been built around them to make sure
they are conducted within these boundaries.
 d. All of the above are included
Ans. D. All of the above included
43. The most important and key component of vendor governance is
a. constant collaboration
b. constant negotiation
c. constant cooperation
d. constant monitoring
Ans. A. Constant Collaboration

44. Which of the following is wrong on Corporate Governance: “For the sake of long
term sustenance of the principles of corporate governance are based on”

a. Transparency,
b. Accountability,
c. Responsibility and fairness.
d. All of the above are correct.

45. Clause 35B of the Listing Agreement in SEBI guidelines talks about

a. E-voting
b. Forbidding stock options for independent directors
c. On related party transaction
d. None of the above
Ans. A. E Voting
46. Restriction is corporate insiders who arrive at trading decisions by using the price
sensitive information directly or indirectly is called
a. Prohibition of Voting rights to shareholders
b. Prohibition of Insider Trading
c. Protection of Inside selling
d. None of the above
Ans. B. Prohibition of Insider Trading

47. Corporate Governance is needed for the bank to keep a check, find the odd one
a. on money laundering,
b. financing immoral and criminal acts
c. loan to the debtors/Creditor
d. Transaction of money to the terrorists.
Ans. C. Loan to debtors/creditor
48. RBI sets trigger correcting measures not on the basis of,
a. CRAR
b. IMF
c. NPA
d. ROA
Ans. B. IMF
49. Section 149 of the Companies Act, 2013 says every insurer shall ensure that:
a. There should one independent director
b. There should one resident director
c. These should at least one woman director
d. There should at least one Internal Director
Ans. C. At least one woman director
50. The main objective of Investment Committee for an Insurer is to protect
a. Investment Interest of the public
b. Investment interest of the insurance company
c. Investment interest of insured
d. None of these
Ans. B. Investment Interest of the Company