Test your basic knowledge |

Corporate Governance

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. 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






2. Owners of a stewardship






3. People who lend money






4. People who owe you money






5. Revenue or expense amounts that have been accumulating for the business but have not been recorded in the journal(s).






6. 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






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






8. 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






9. Stuff owned and valued within the last 12 months






10. The set of processes - customs - policies - laws - and institutions affecting the way a corporation (or company) is directed






11. 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






12. Stuff owned and valued more than 12 months ago






13. 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






14. Engaged in the daily business of the company - normally - is also a a shareholder.






15. Agents of a stewardship






16. 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






17. The group of the directors responsible for governing the company on behalf of the shareholders.






18. The person responsible for the financial corporate governance. Normally smaller businesses has a Chief Financial Officer






19. Stuff having a physical existence - things that you can 'touch'






20. '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.






21. The amount owed to Creditors is normally certain i.e. what is invoiced -






22. 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.






23. 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.






24. 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






25. Shareholders expect Directors to act in their best interests and select suitable investment strategies. Two extreme positions may be considered:






26. Stuff that the company invested into which holds value; e.g. : research - patent/warrant - license - logo






27. What is a 'A True and Fair View' in Corporate Governance?