SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
Search
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. Shareholders expect Directors to act in their best interests and select suitable investment strategies. Two extreme positions may be considered:
Statutory Accounts
Shareholders
External Auditors
Directors as Shareholders
2. 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
Special Purpose Entity (SPE)
The Board of directors
Statutory Accounts
Mutual Trust
3. 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
Executive Director
External Auditors
Mutual Trust
Shareholders
4. The person responsible for the financial corporate governance. Normally smaller businesses has a Chief Financial Officer
Corporate Governance
Chief Financial Officer
An accounting practice developed to help establish reasonable value to be placed on tangible and in-tangible assets.
Liabilities
5. Stuff having a physical existence - things that you can 'touch'
Special Purpose Entity (SPE)
Current Asset
Directors (Managing director)
tangible asset
6. Stuff owned and valued within the last 12 months
Directors as Shareholders
Current Asset
External Auditors
Mutual Trust
7. 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
Company Secretary
The Board of directors
Executive Director
Mutual Trust
8. 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.
Creditors
Chief Financial Officer
Accruals
Company Secretary
9. 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
Company Secretary
Financial reporting duties of a Director of a firm
External Auditors
Statutory Accounts
10. What is a 'A True and Fair View' in Corporate Governance?
Ways problem can occur in a firm
An accounting practice developed to help establish reasonable value to be placed on tangible and in-tangible assets.
Creditors
Non-current asset
11. 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
Stewardship
Ways problem can occur in a firm
Mutual Trust
Shareholders
12. 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
Current Asset
Financial reporting duties of a Director of a firm
Chief Financial Officer
Remuneration / Compensation Committee
13. 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.
Executive Director
Stewardship
Chairman of the Board of Directors
Legal responsibility of a Director
14. 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
Legal responsibility of a Director
Current Asset
External Auditors
Creditors
15. The set of processes - customs - policies - laws - and institutions affecting the way a corporation (or company) is directed
Directors (Managing director)
Mutual Trust
Chairman of the Board of Directors
Corporate Governance
16. Agents of a stewardship
Directors (Managing director)
Current Asset
Special Purpose Entity (SPE)
Creditors
17. The group of the directors responsible for governing the company on behalf of the shareholders.
Non-current asset
Company Secretary
The Board of directors
Legal responsibility of a Director
18. People who owe you money
The Board of directors
Current Asset
Debtors
Creditors
19. 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
Remuneration / Compensation Committee
External Auditors
Debtors
Mutual Trust
20. People who lend money
Creditors
Mutual Trust
Executive Director
Remuneration / Compensation Committee
21. Revenue or expense amounts that have been accumulating for the business but have not been recorded in the journal(s).
Accruals
Non-current asset
Company Secretary
Directors (Managing director)
22. Owners of a stewardship
Shareholders
Mutual Trust
Chairman of the Board of Directors
Current Asset
23. '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
Corporate Governance
Legal responsibility of a Director
Directors as Shareholders
24. Engaged in the daily business of the company - normally - is also a a shareholder.
Remuneration / Compensation Committee
Executive Director
Statutory Accounts
Chairman of the Board of Directors
25. Stuff owned and valued more than 12 months ago
Non-current asset
Stewardship
Creditors
Special Purpose Entity (SPE)
26. Stuff that the company invested into which holds value; e.g. : research - patent/warrant - license - logo
Intangible assets/items
Directors (Managing director)
External Auditors
The Board of directors
27. The amount owed to Creditors is normally certain i.e. what is invoiced -
Ways problem can occur in a firm
Mutual Trust
Liabilities
Non-current asset