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Test your basic knowledge |
Corporate Governance
Start Test
Study First
Subject
:
business-skills
Instructions:
Answer 27 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Revenue or expense amounts that have been accumulating for the business but have not been recorded in the journal(s).
Accruals
Debtors
Financial reporting duties of a Director of a firm
Chairman of the Board of Directors
2. People who lend money
Accruals
Creditors
Legal responsibility of a Director
Corporate Governance
3. Under the Companies Acts the company must file annual accounts at Companies House for public record. According to the size and status of the company i.e. Private or Public - large - medium or small company as defined by the Companies Act - the ext
Statutory Accounts
Ways problem can occur in a firm
Mutual Trust
Corporate Governance
4. The Shareholders must have trust in the Directors - Chairman and Auditors of their company. Debt Holders - the Banks - Business Creditors provide funds to corporate business on the basis of Trust and Contract - relying heavily on the mechanisms o
Shareholders
Statutory Accounts
Mutual Trust
Corporate Governance
5. Public Office Independent Accountants who Audit or Inspect the Company Accounts to provide a statement that they are a 'True and Fair view' of the Companies business at the date of audit. The Auditors are nominated by the Directors but voted into off
Chairman of the Board of Directors
Directors as Shareholders
External Auditors
An accounting practice developed to help establish reasonable value to be placed on tangible and in-tangible assets.
6. Agents of a stewardship
Shareholders
Debtors
Directors (Managing director)
External Auditors
7. Stuff that the company invested into which holds value; e.g. : research - patent/warrant - license - logo
Mutual Trust
Corporate Governance
Statutory Accounts
Intangible assets/items
8. People who owe you money
Directors (Managing director)
Statutory Accounts
Mutual Trust
Debtors
9. The person responsible for the financial corporate governance. Normally smaller businesses has a Chief Financial Officer
Chief Financial Officer
Mutual Trust
External Auditors
Non-current asset
10. The group of the directors responsible for governing the company on behalf of the shareholders.
External Auditors
The Board of directors
An accounting practice developed to help establish reasonable value to be placed on tangible and in-tangible assets.
Stewardship
11. Stuff having a physical existence - things that you can 'touch'
Stewardship
tangible asset
Directors (Managing director)
Shareholders
12. What is a 'A True and Fair View' in Corporate Governance?
Chairman of the Board of Directors
Directors as Shareholders
An accounting practice developed to help establish reasonable value to be placed on tangible and in-tangible assets.
Intangible assets/items
13. The amount owed to Creditors is normally certain i.e. what is invoiced -
Corporate Governance
Chairman of the Board of Directors
Liabilities
Chief Financial Officer
14. 1) the director should abide to their legal duties towards the members of the firm. 2) provide audited financial report to provide 'true and fair view' of the accounts - 3) engage in discussions with non-exec directors - 4) provide internal audit t
Financial reporting duties of a Director of a firm
Debtors
Remuneration / Compensation Committee
Statutory Accounts
15. 'Chairs the Board but should not be an Executive Director - should be independent and has the duty to ensure the matters of the Board are undertaken in a correct manner.
Chairman of the Board of Directors
Directors as Shareholders
Creditors
Legal responsibility of a Director
16. A Function on the Board for administering the proper proceedings of the Board of Directors.Also ensures the company operates within the relevant legislation - principally the Companies Acts.May have a legal or financial background.
An accounting practice developed to help establish reasonable value to be placed on tangible and in-tangible assets.
Legal responsibility of a Director
Statutory Accounts
Company Secretary
17. Engaged in the daily business of the company - normally - is also a a shareholder.
Shareholders
Debtors
Executive Director
Chairman of the Board of Directors
18. The set of processes - customs - policies - laws - and institutions affecting the way a corporation (or company) is directed
Corporate Governance
External Auditors
Directors (Managing director)
Chairman of the Board of Directors
19. As old as ownership of Property - the notion and practice of absentee 'Owners' delegating responsibility for the management of property and money based assets to an 'Agent' for safe keeping and supervision.
Special Purpose Entity (SPE)
Stewardship
Non-current asset
Ways problem can occur in a firm
20. Owners of a stewardship
Creditors
Liabilities
Stewardship
Shareholders
21. Stuff owned and valued within the last 12 months
tangible asset
Mutual Trust
Current Asset
The Board of directors
22. For example - UK legislation says that directors have a 'fiduciary duty' to act in the best interests of the owners of the enterprise - the précis nature of this duty is not defined (Neale & McElroy 2004
Mutual Trust
Liabilities
Legal responsibility of a Director
Current Asset
23. Direct fraud - Mismanagement - mistake or error by Board of directors - or Off balance sheeting items to help the board of directors to achieve their bonuses
Ways problem can occur in a firm
Financial reporting duties of a Director of a firm
tangible asset
Current Asset
24. A legal entity (usually a limited company of some type or - sometimes - a limited partnership) created to fulfill narrow - specific or temporary objectives. SPE's are typically used by companies to isolate the firm from financial risk. A company w
Financial reporting duties of a Director of a firm
Special Purpose Entity (SPE)
Chairman of the Board of Directors
Chief Financial Officer
25. In large corporations the Remuneration Committee is responsible for setting the Directors' remuneration and Incentive schemes. It is important that the committee has a high degree of independence and as such they should include a significant proporti
Corporate Governance
Chairman of the Board of Directors
Remuneration / Compensation Committee
Statutory Accounts
26. Stuff owned and valued more than 12 months ago
Financial reporting duties of a Director of a firm
tangible asset
Legal responsibility of a Director
Non-current asset
27. Shareholders expect Directors to act in their best interests and select suitable investment strategies. Two extreme positions may be considered:
Accruals
Special Purpose Entity (SPE)
Chairman of the Board of Directors
Directors as Shareholders