Quiz on Governance

What is governance primarily concerned with?

• The processes and structures used to direct and manage an organization

• The daily operational tasks of employees

• Marketing and sales strategies

• Only financial reporting

Which principle of good governance ensures decision-makers are answerable for their actions?

• Accountability

• Transparency

• Fairness

• Responsibility

Which of the following best defines corporate governance?

• The system of rules, practices, and processes by which a company is directed and controlled

• The operational management of a business

• The study of financial accounting

• The process of selling company shares

Which governance principle requires openness in decision-making and information disclosure?

• Transparency

• Accountability

• Responsibility

• Fairness

Why is corporate governance important?

• It ensures ethical business practices and protects stakeholders' interests

• It reduces the need for financial reporting

• It eliminates competition

• It allows executives to operate without oversight

The board of directors is primarily responsible for:

Which of the following is NOT a role of shareholders in governance?

• Electing the board of directors

• Approving major corporate decisions

• Managing day-to-day operations

• Holding executives accountable

Which of the following best describes the role of executives in governance?

• Implementing board-approved strategies and overseeing daily operations

• Creating corporate laws

• Approving shareholder investments

• Conducting external audits

Public sector governance differs from private sector governance because:

• It prioritizes accountability to citizens rather than shareholders

• It does not require governance principles

• It is less transparent than private sector governance

• It operates without legal regulations

The OECD Principles of Corporate Governance are significant because:

• They provide international standards for best governance practices

• They apply only to the United States

• They focus only on small businesses

• They eliminate the need for financial reporting