BBA Sem VI CSR MCQs 2025

UNIT 1: Introduction to Corporate Governance

  1. What is the primary objective of corporate governance?
    a) Maximizing shareholder wealth
    b) Reducing government regulations
    c) Increasing company size
    d) Avoiding taxation
    Answer: a) Maximizing shareholder wealth

  2. Which of the following is NOT a function of corporate governance?
    a) Ensuring transparency
    b) Managing daily business operations
    c) Protecting shareholders' rights
    d) Ensuring accountability
    Answer: b) Managing daily business operations

  3. Which of the following is NOT a pillar of corporate governance?
    a) Accountability
    b) Transparency
    c) Profit maximization
    d) Fairness
    Answer: c) Profit maximization

  4. Which of the following organizations plays a crucial role in corporate governance in India?
    a) SEBI
    b) RBI
    c) TRAI
    d) IRDAI
    Answer: a) SEBI

  5. Which committee introduced the first formal corporate governance norms in India?
    a) Narasimham Committee
    b) Kotak Committee
    c) Kumar Mangalam Birla Committee
    d) Verma Committee
    Answer: c) Kumar Mangalam Birla Committee

  6. Which of the following is NOT an essential component of corporate governance?
    a) Board of Directors
    b) External auditors
    c) Government ownership
    d) Shareholder protection
    Answer: c) Government ownership

  7. When did corporate governance norms gain importance in India?
    a) After the 1947 Independence
    b) After the 1991 economic reforms
    c) After the 2014 Companies Act
    d) In the early 2000s
    Answer: b) After the 1991 economic reforms

  8. Which of the following is a recent development in corporate governance?
    a) Companies Act 1956
    b) SEBI (LODR) Regulations, 2015
    c) Industrial Policy, 1991
    d) RBI Monetary Policy, 2019
    Answer: b) SEBI (LODR) Regulations, 2015

  9. The Companies Act, 2013 introduced which key feature for corporate governance?
    a) Independent directors
    b) Exemption from tax regulations
    c) Elimination of shareholders' voting rights
    d) Removal of corporate social responsibility
    Answer: a) Independent directors

  10. Which pillar of corporate governance ensures that companies provide clear, accurate, and timely information to stakeholders?
    a) Accountability
    b) Transparency
    c) Fairness
    d) Responsibility
    Answer: b) Transparency

  11. Which of the following is NOT a primary stakeholder in corporate governance?
    a) Shareholders
    b) Customers
    c) Competitors
    d) Employees
    Answer: c) Competitors

  12. Which Indian authority enforces corporate governance norms for listed companies?
    a) SEBI
    b) Ministry of Corporate Affairs
    c) NITI Aayog
    d) RBI
    Answer: a) SEBI

  13. The term "corporate governance" primarily refers to the relationship between:
    a) Government and private corporations
    b) A company and its board of directors
    c) A company and its stakeholders
    d) Employees and shareholders
    Answer: c) A company and its stakeholders

  14. Which of the following acts strengthened corporate governance in India by making CSR mandatory for certain companies?
    a) Companies Act, 1956
    b) Companies Act, 2013
    c) SEBI Act, 1992
    d) Industrial Disputes Act, 1947
    Answer: b) Companies Act, 2013

UNIT 2: Corporate Governance Theories

  1. Which of the following is NOT an economic theory of corporate governance?
    a) Agency Theory
    b) Finance Theory
    c) Institutional Theory
    d) Managerial Theory
    Answer: c) Institutional Theory

  2. Agency theory in corporate governance primarily deals with conflicts between:
    a) Shareholders and creditors
    b) Managers and shareholders
    c) Employees and management
    d) Customers and suppliers
    Answer: b) Managers and shareholders

  3. Which corporate governance theory assumes that managers act in the best interest of the company without external controls?
    a) Agency Theory
    b) Stewardship Theory
    c) Resource Theory
    d) Stakeholder Theory
    Answer: b) Stewardship Theory

  4. Which theory states that organizations depend on external resources, influencing corporate governance?
    a) Agency Theory
    b) Resource Dependency Theory
    c) Stakeholder Theory
    d) Finance Theory
    Answer: b) Resource Dependency Theory

  5. Which corporate governance theory considers multiple stakeholders, not just shareholders?
    a) Managerial Theory
    b) Agency Theory
    c) Stakeholder Theory
    d) Institutional Theory
    Answer: c) Stakeholder Theory

  6. Which of the following is a key guideline for corporate governance in companies?
    a) SEBI Listing Obligations and Disclosure Requirements
    b) RBI Credit Policy
    c) Competition Act, 2002
    d) FEMA, 1999
    Answer: a) SEBI Listing Obligations and Disclosure Requirements

  7. What is the main concern of Finance Theory in corporate governance?
    a) Ownership and control separation
    b) Optimal financial decision-making
    c) Ethical business practices
    d) Corporate social responsibility
    Answer: b) Optimal financial decision-making

  8. Which corporate governance theory focuses on regulatory and environmental influences on organizations?
    a) Institutional Theory
    b) Agency Theory
    c) Finance Theory
    d) Stakeholder Theory
    Answer: a) Institutional Theory

  9. What does the Stewardship Theory suggest about managers?
    a) They act in self-interest against shareholders
    b) They are stewards who naturally work for the company’s success
    c) They need strict monitoring to perform well
    d) They primarily work for personal financial gains
    Answer: b) They are stewards who naturally work for the company’s success

  10. Which of the following is NOT a principle of good corporate governance?
    a) Independence
    b) Transparency
    c) Insider Trading
    d) Accountability
    Answer: c) Insider Trading

  11. Which corporate governance theory emphasizes that firms operate within institutional frameworks such as laws and social norms?
    a) Agency Theory
    b) Institutional Theory
    c) Stewardship Theory
    d) Resource Dependency Theory
    Answer: b) Institutional Theory

UNIT 1: Introduction to Corporate Governance

  1. Which of the following best defines corporate governance?
    a) The process of maximizing a company's profits
    b) The system by which companies are directed and controlled
    c) The method of managing human resources
    d) The way companies handle taxation
    Answer: b) The system by which companies are directed and controlled

  2. Which of the following best describes the role of independent directors?
    a) They manage daily operations
    b) They ensure compliance with laws and regulations
    c) They represent the government in the company
    d) They focus solely on maximizing profits
    Answer: b) They ensure compliance with laws and regulations

  3. Which of the following is NOT a core principle of corporate governance?
    a) Integrity
    b) Transparency
    c) Monopoly control
    d) Accountability
    Answer: c) Monopoly control

  4. Which of the following is an example of poor corporate governance?
    a) Strong internal controls
    b) Regular financial disclosures
    c) Fraudulent financial reporting
    d) Independent board of directors
    Answer: c) Fraudulent financial reporting

  5. Which key document defines corporate governance norms for companies in India?
    a) Companies Act, 2013
    b) SEBI Act, 1992
    c) Income Tax Act, 1961
    d) RBI Act, 1934
    Answer: a) Companies Act, 2013

  6. Which of the following is NOT a function of a board of directors in corporate governance?
    a) Setting corporate policies
    b) Managing daily business operations
    c) Ensuring legal compliance
    d) Supervising top management
    Answer: b) Managing daily business operations

  7. Which committee introduced Clause 49 in India’s listing agreement?
    a) Narayana Murthy Committee
    b) Kumar Mangalam Birla Committee
    c) Uday Kotak Committee
    d) J.J. Irani Committee
    Answer: b) Kumar Mangalam Birla Committee

  8. Which of the following is a benefit of corporate governance?
    a) Reduced transparency
    b) Increased investor confidence
    c) Higher monopoly control
    d) Reduced shareholder rights
    Answer: b) Increased investor confidence

  9. The Sarbanes-Oxley Act was introduced in response to which corporate scandal?
    a) Tata Motors
    b) Enron
    c) Infosys
    d) Google
    Answer: b) Enron

  10. Which of the following statements is true about corporate governance?
    a) It only applies to private companies
    b) It aims to balance the interests of all stakeholders
    c) It is only concerned with financial reporting
    d) It only benefits shareholders
    Answer: b) It aims to balance the interests of all stakeholders

  11. What is the role of an audit committee in corporate governance?
    a) To prepare tax reports
    b) To oversee financial reporting and audits
    c) To manage employee payroll
    d) To monitor production quality
    Answer: b) To oversee financial reporting and audits

  12. What is the full form of CSR in corporate governance?
    a) Corporate Stakeholder Responsibility
    b) Corporate Social Responsibility
    c) Company Statutory Regulation
    d) Consumer Satisfaction Reporting
    Answer: b) Corporate Social Responsibility

  13. Who appoints the board of directors in a company?
    a) Government agencies
    b) Shareholders
    c) Employees
    d) Creditors
    Answer: b) Shareholders

  14. Which of the following is NOT a recent development in corporate governance in India?
    a) SEBI (LODR) Regulations, 2015
    b) Mandatory appointment of women directors
    c) Introduction of Blockchain in governance
    d) Exemption of companies from corporate governance norms
    Answer: d) Exemption of companies from corporate governance norms

  15. Which is a key objective of corporate governance?
    a) Enhancing corporate profitability at all costs
    b) Strengthening the company's legal framework
    c) Ensuring fair treatment of all stakeholders
    d) Avoiding financial disclosures
    Answer: c) Ensuring fair treatment of all stakeholders

UNIT 2: Corporate Governance Theories

  1. Which corporate governance theory suggests that managers may act in their own self-interest instead of maximizing shareholder value?
    a) Stakeholder Theory
    b) Agency Theory
    c) Stewardship Theory
    d) Resource Dependency Theory
    Answer: b) Agency Theory

  2. Which corporate governance theory focuses on organizations adapting to their external environment?
    a) Institutional Theory
    b) Agency Theory
    c) Finance Theory
    d) Stakeholder Theory
    Answer: a) Institutional Theory

  3. Which of the following is NOT an economic theory of corporate governance?
    a) Agency Theory
    b) Stewardship Theory
    c) Finance Theory
    d) Managerial Theory
    Answer: b) Stewardship Theory

  4. According to Stakeholder Theory, which of the following is a key concern of corporate governance?
    a) Only shareholders’ interests
    b) Interests of all stakeholders
    c) Only regulatory compliance
    d) Profit maximization above ethics
    Answer: b) Interests of all stakeholders

  5. Which theory assumes that managers act as stewards who work in the best interests of shareholders?
    a) Agency Theory
    b) Stewardship Theory
    c) Institutional Theory
    d) Finance Theory
    Answer: b) Stewardship Theory

  6. Which theory states that corporate governance is influenced by external factors such as regulations and societal norms?
    a) Resource Dependency Theory
    b) Institutional Theory
    c) Finance Theory
    d) Agency Theory
    Answer: b) Institutional Theory

  7. Which of the following best describes the Resource Dependency Theory?
    a) It emphasizes the control of managers over corporate decisions
    b) It highlights a company’s dependence on external resources for survival
    c) It focuses only on financial decision-making
    d) It ignores external environmental factors
    Answer: b) It highlights a company’s dependence on external resources for survival

  8. Which theory suggests that conflicts arise because managers (agents) may not always act in the best interests of shareholders (principals)?
    a) Agency Theory
    b) Stewardship Theory
    c) Stakeholder Theory
    d) Institutional Theory
    Answer: a) Agency Theory

  9. Which theory is concerned with aligning executive incentives with shareholder interests?
    a) Managerial Theory
    b) Agency Theory
    c) Finance Theory
    d) Institutional Theory
    Answer: b) Agency Theory

  10. What is the key focus of Finance Theory in corporate governance?
    a) Social responsibility of the firm
    b) Relationship between firms and capital providers
    c) Role of employees in decision-making
    d) Environmental impact of corporations
    Answer: b) Relationship between firms and capital providers

  11. UNIT 1: Introduction to Corporate Governance

  12. 26. Which corporate governance component ensures decisions are made in a lawful and ethical manner?
    a) Transparency
    b) Accountability
    c) Fairness
    d) Compliance
    Answer: d) Compliance

    27. Which of the following is NOT a role of independent directors?
    a) Protecting minority shareholders' interests
    b) Running the day-to-day operations of the company
    c) Ensuring corporate governance compliance
    d) Evaluating the performance of the board
    Answer: b) Running the day-to-day operations of the company

    28. What is the main purpose of corporate governance codes?
    a) To make businesses more profitable
    b) To establish ethical business practices
    c) To control stock prices
    d) To eliminate competition
    Answer: b) To establish ethical business practices

    29. Which key corporate governance concept involves companies being open about financial reporting and decision-making?
    a) Accountability
    b) Transparency
    c) Authority
    d) Leadership
    Answer: b) Transparency

    30. Which of the following organizations in India is responsible for overseeing financial reporting and accounting standards?
    a) RBI
    b) SEBI
    c) ICAI
    d) IRDAI
    Answer: c) ICAI

    31. What is the role of whistleblowing in corporate governance?
    a) To promote employee incentives
    b) To expose unethical or illegal practices within a company
    c) To increase company profits
    d) To manage marketing strategies
    Answer: b) To expose unethical or illegal practices within a company

    32. Which section of the Companies Act, 2013, mandates the appointment of independent directors?
    a) Section 135
    b) Section 149
    c) Section 248
    d) Section 200
    Answer: b) Section 149

    33. Which of the following is an example of corporate governance failure?
    a) Effective risk management policies
    b) Insider trading scandals
    c) Regular financial audits
    d) Appointment of independent directors
    Answer: b) Insider trading scandals

    34. Which principle ensures that corporate decisions consider all stakeholders, not just shareholders?
    a) Profit Maximization
    b) Stakeholder Inclusiveness
    c) Insider Trading
    d) Market Competition
    Answer: b) Stakeholder Inclusiveness

    35. Who is responsible for appointing statutory auditors in a company?
    a) Board of Directors
    b) Shareholders
    c) Government Agencies
    d) Employees
    Answer: b) Shareholders

    36. Which is a key requirement for listed companies under SEBI (LODR) regulations?
    a) Mandatory corporate donations
    b) Quarterly financial disclosures
    c) Exemption from tax audits
    d) Unlimited tenure for directors
    Answer: b) Quarterly financial disclosures

    37. What is the primary role of the Nomination and Remuneration Committee in corporate governance?
    a) Hiring employees
    b) Deciding executive compensation and board appointments
    c) Managing customer complaints
    d) Supervising marketing campaigns
    Answer: b) Deciding executive compensation and board appointments

    38. Which mechanism ensures that shareholders can voice concerns about company policies?
    a) Dividend Policy
    b) Annual General Meeting (AGM)
    c) Insider Trading Regulations
    d) Managerial Control
    Answer: b) Annual General Meeting (AGM)

    39. Which of the following is NOT considered a stakeholder in corporate governance?
    a) Employees
    b) Shareholders
    c) Competitors
    d) Customers
    Answer: c) Competitors

    40. Which of the following was a major corporate governance scandal in India?
    a) Infosys IPO
    b) Satyam Scandal
    c) Tata Group Expansion
    d) SEBI Regulation Amendments
    Answer: b) Satyam Scandal

    UNIT 2: Corporate Governance Theories

    41. What does the Principal-Agent Problem in corporate governance refer to?
    a) A conflict between majority and minority shareholders
    b) A conflict of interest between managers and shareholders
    c) A conflict between employees and management
    d) A conflict between customers and suppliers
    Answer: b) A conflict of interest between managers and shareholders

    42. Which theory states that managers naturally act in the best interest of the company?
    a) Agency Theory
    b) Stakeholder Theory
    c) Stewardship Theory
    d) Institutional Theory
    Answer: c) Stewardship Theory

    43. Which of the following governance theories focuses on how firms obtain and manage external resources?
    a) Finance Theory
    b) Resource Dependency Theory
    c) Stakeholder Theory
    d) Institutional Theory
    Answer: b) Resource Dependency Theory

    44. According to Stakeholder Theory, corporate governance should focus on:
    a) Maximizing shareholder returns
    b) Benefiting all parties affected by the company’s decisions
    c) Strengthening regulatory frameworks
    d) Improving stock market performance
    Answer: b) Benefiting all parties affected by the company’s decisions

    45. Which governance theory explains how a company is influenced by legal, cultural, and political factors?
    a) Institutional Theory
    b) Stewardship Theory
    c) Agency Theory
    d) Finance Theory
    Answer: a) Institutional Theory

    46. Which governance theory suggests that investors and managers have conflicting goals?
    a) Stakeholder Theory
    b) Stewardship Theory
    c) Agency Theory
    d) Institutional Theory
    Answer: c) Agency Theory

    47. What is the main assumption of Resource Dependency Theory?
    a) Firms operate independently without external influences
    b) Organizations must manage relationships with key external stakeholders
    c) Companies should prioritize short-term profits
    d) Executives always act in shareholders’ best interests
    Answer: b) Organizations must manage relationships with key external stakeholders

    48. Which theory suggests that financial decisions in corporate governance should prioritize capital allocation and investor returns?
    a) Agency Theory
    b) Finance Theory
    c) Stewardship Theory
    d) Institutional Theory
    Answer: b) Finance Theory

    49. Which of the following governance theories is most aligned with ethical decision-making and corporate social responsibility?
    a) Stewardship Theory
    b) Institutional Theory
    c) Stakeholder Theory
    d) Agency Theory
    Answer: c) Stakeholder Theory

    50. Which of the following statements best describes Institutional Theory in corporate governance?
    a) Companies operate in isolation from their external environment
    b) Firms adapt to rules, norms, and cultural expectations in their industry
    c) Corporate governance only depends on financial decision-making
    d) Shareholders have no role in corporate decision-making
    Answer: b) Firms adapt to rules, norms, and cultural expectations in their industry

    UNIT 1: Introduction to Corporate Governance

    1. What is the primary objective of corporate governance?
      a) Maximizing shareholder wealth
      b) Reducing government regulations
      c) Increasing company size
      d) Avoiding taxation
      Answer: a) Maximizing shareholder wealth

    2. Which of the following is NOT a function of corporate governance?
      a) Ensuring transparency
      b) Managing daily business operations
      c) Protecting shareholders' rights
      d) Ensuring accountability
      Answer: b) Managing daily business operations

    3. Which of the following is NOT a pillar of corporate governance?
      a) Accountability
      b) Transparency
      c) Profit maximization
      d) Fairness
      Answer: c) Profit maximization

    4. Which of the following organizations plays a crucial role in corporate governance in India?
      a) SEBI
      b) RBI
      c) TRAI
      d) IRDAI
      Answer: a) SEBI

    5. Which committee introduced the first formal corporate governance norms in India?
      a) Narasimham Committee
      b) Kotak Committee
      c) Kumar Mangalam Birla Committee
      d) Verma Committee
      Answer: c) Kumar Mangalam Birla Committee

    6. Which of the following is NOT an essential component of corporate governance?
      a) Board of Directors
      b) External auditors
      c) Government ownership
      d) Shareholder protection
      Answer: c) Government ownership

    7. When did corporate governance norms gain importance in India?
      a) After the 1947 Independence
      b) After the 1991 economic reforms
      c) After the 2014 Companies Act
      d) In the early 2000s
      Answer: b) After the 1991 economic reforms

    8. Which of the following is a recent development in corporate governance?
      a) Companies Act 1956
      b) SEBI (LODR) Regulations, 2015
      c) Industrial Policy, 1991
      d) RBI Monetary Policy, 2019
      Answer: b) SEBI (LODR) Regulations, 2015

    9. The Companies Act, 2013 introduced which key feature for corporate governance?
      a) Independent directors
      b) Exemption from tax regulations
      c) Elimination of shareholders' voting rights
      d) Removal of corporate social responsibility
      Answer: a) Independent directors

    10. Which pillar of corporate governance ensures that companies provide clear, accurate, and timely information to stakeholders?
      a) Accountability
      b) Transparency
      c) Fairness
      d) Responsibility
      Answer: b) Transparency

    11. Which of the following is NOT a primary stakeholder in corporate governance?
      a) Shareholders
      b) Customers
      c) Competitors
      d) Employees
      Answer: c) Competitors

    12. Which Indian authority enforces corporate governance norms for listed companies?
      a) SEBI
      b) Ministry of Corporate Affairs
      c) NITI Aayog
      d) RBI
      Answer: a) SEBI

    13. The term "corporate governance" primarily refers to the relationship between:
      a) Government and private corporations
      b) A company and its board of directors
      c) A company and its stakeholders
      d) Employees and shareholders
      Answer: c) A company and its stakeholders

    14. Which of the following acts strengthened corporate governance in India by making CSR mandatory for certain companies?
      a) Companies Act, 1956
      b) Companies Act, 2013
      c) SEBI Act, 1992
      d) Industrial Disputes Act, 1947
      Answer: b) Companies Act, 2013

    UNIT 2: Corporate Governance Theories

    1. Which of the following is NOT an economic theory of corporate governance?
      a) Agency Theory
      b) Finance Theory
      c) Institutional Theory
      d) Managerial Theory
      Answer: c) Institutional Theory

    2. Agency theory in corporate governance primarily deals with conflicts between:
      a) Shareholders and creditors
      b) Managers and shareholders
      c) Employees and management
      d) Customers and suppliers
      Answer: b) Managers and shareholders

    3. Which corporate governance theory assumes that managers act in the best interest of the company without external controls?
      a) Agency Theory
      b) Stewardship Theory
      c) Resource Theory
      d) Stakeholder Theory
      Answer: b) Stewardship Theory

    4. Which theory states that organizations depend on external resources, influencing corporate governance?
      a) Agency Theory
      b) Resource Dependency Theory
      c) Stakeholder Theory
      d) Finance Theory
      Answer: b) Resource Dependency Theory

    5. Which corporate governance theory considers multiple stakeholders, not just shareholders?
      a) Managerial Theory
      b) Agency Theory
      c) Stakeholder Theory
      d) Institutional Theory
      Answer: c) Stakeholder Theory

    6. Which of the following is a key guideline for corporate governance in companies?
      a) SEBI Listing Obligations and Disclosure Requirements
      b) RBI Credit Policy
      c) Competition Act, 2002
      d) FEMA, 1999
      Answer: a) SEBI Listing Obligations and Disclosure Requirements

    7. What is the main concern of Finance Theory in corporate governance?
      a) Ownership and control separation
      b) Optimal financial decision-making
      c) Ethical business practices
      d) Corporate social responsibility
      Answer: b) Optimal financial decision-making

    8. Which corporate governance theory focuses on regulatory and environmental influences on organizations?
      a) Institutional Theory
      b) Agency Theory
      c) Finance Theory
      d) Stakeholder Theory
      Answer: a) Institutional Theory

    9. What does the Stewardship Theory suggest about managers?
      a) They act in self-interest against shareholders
      b) They are stewards who naturally work for the company’s success
      c) They need strict monitoring to perform well
      d) They primarily work for personal financial gains
      Answer: b) They are stewards who naturally work for the company’s success

    10. Which of the following is NOT a principle of good corporate governance?
      a) Independence
      b) Transparency
      c) Insider Trading
      d) Accountability
      Answer: c) Insider Trading

    11. Which corporate governance theory emphasizes that firms operate within institutional frameworks such as laws and social norms?
      a) Agency Theory
      b) Institutional Theory
      c) Stewardship Theory
      d) Resource Dependency Theory
      Answer: b) Institutional Theory


    UNIT 1: Introduction to Corporate Governance

    1. Which of the following best defines corporate governance?
      a) The process of maximizing a company's profits
      b) The system by which companies are directed and controlled
      c) The method of managing human resources
      d) The way companies handle taxation
      Answer: b) The system by which companies are directed and controlled

    2. Which of the following best describes the role of independent directors?
      a) They manage daily operations
      b) They ensure compliance with laws and regulations
      c) They represent the government in the company
      d) They focus solely on maximizing profits
      Answer: b) They ensure compliance with laws and regulations

    3. Which of the following is NOT a core principle of corporate governance?
      a) Integrity
      b) Transparency
      c) Monopoly control
      d) Accountability
      Answer: c) Monopoly control

    4. Which of the following is an example of poor corporate governance?
      a) Strong internal controls
      b) Regular financial disclosures
      c) Fraudulent financial reporting
      d) Independent board of directors
      Answer: c) Fraudulent financial reporting

    5. Which key document defines corporate governance norms for companies in India?
      a) Companies Act, 2013
      b) SEBI Act, 1992
      c) Income Tax Act, 1961
      d) RBI Act, 1934
      Answer: a) Companies Act, 2013

    6. Which of the following is NOT a function of a board of directors in corporate governance?
      a) Setting corporate policies
      b) Managing daily business operations
      c) Ensuring legal compliance
      d) Supervising top management
      Answer: b) Managing daily business operations

    7. Which committee introduced Clause 49 in India’s listing agreement?
      a) Narayana Murthy Committee
      b) Kumar Mangalam Birla Committee
      c) Uday Kotak Committee
      d) J.J. Irani Committee
      Answer: b) Kumar Mangalam Birla Committee

    8. Which of the following is a benefit of corporate governance?
      a) Reduced transparency
      b) Increased investor confidence
      c) Higher monopoly control
      d) Reduced shareholder rights
      Answer: b) Increased investor confidence

    9. The Sarbanes-Oxley Act was introduced in response to which corporate scandal?
      a) Tata Motors
      b) Enron
      c) Infosys
      d) Google
      Answer: b) Enron

    10. Which of the following statements is true about corporate governance?
      a) It only applies to private companies
      b) It aims to balance the interests of all stakeholders
      c) It is only concerned with financial reporting
      d) It only benefits shareholders
      Answer: b) It aims to balance the interests of all stakeholders

    11. What is the role of an audit committee in corporate governance?
      a) To prepare tax reports
      b) To oversee financial reporting and audits
      c) To manage employee payroll
      d) To monitor production quality
      Answer: b) To oversee financial reporting and audits

    12. What is the full form of CSR in corporate governance?
      a) Corporate Stakeholder Responsibility
      b) Corporate Social Responsibility
      c) Company Statutory Regulation
      d) Consumer Satisfaction Reporting
      Answer: b) Corporate Social Responsibility

    13. Who appoints the board of directors in a company?
      a) Government agencies
      b) Shareholders
      c) Employees
      d) Creditors
      Answer: b) Shareholders

    14. Which of the following is NOT a recent development in corporate governance in India?
      a) SEBI (LODR) Regulations, 2015
      b) Mandatory appointment of women directors
      c) Introduction of Blockchain in governance
      d) Exemption of companies from corporate governance norms
      Answer: d) Exemption of companies from corporate governance norms

    15. Which is a key objective of corporate governance?
      a) Enhancing corporate profitability at all costs
      b) Strengthening the company's legal framework
      c) Ensuring fair treatment of all stakeholders
      d) Avoiding financial disclosures
      Answer: c) Ensuring fair treatment of all stakeholders

    UNIT 2: Corporate Governance Theories

    1. Which corporate governance theory suggests that managers may act in their own self-interest instead of maximizing shareholder value?
      a) Stakeholder Theory
      b) Agency Theory
      c) Stewardship Theory
      d) Resource Dependency Theory
      Answer: b) Agency Theory

    2. Which corporate governance theory focuses on organizations adapting to their external environment?
      a) Institutional Theory
      b) Agency Theory
      c) Finance Theory
      d) Stakeholder Theory
      Answer: a) Institutional Theory

    3. Which of the following is NOT an economic theory of corporate governance?
      a) Agency Theory
      b) Stewardship Theory
      c) Finance Theory
      d) Managerial Theory
      Answer: b) Stewardship Theory

    4. According to Stakeholder Theory, which of the following is a key concern of corporate governance?
      a) Only shareholders’ interests
      b) Interests of all stakeholders
      c) Only regulatory compliance
      d) Profit maximization above ethics
      Answer: b) Interests of all stakeholders

    5. Which theory assumes that managers act as stewards who work in the best interests of shareholders?
      a) Agency Theory
      b) Stewardship Theory
      c) Institutional Theory
      d) Finance Theory
      Answer: b) Stewardship Theory

    6. Which theory states that corporate governance is influenced by external factors such as regulations and societal norms?
      a) Resource Dependency Theory
      b) Institutional Theory
      c) Finance Theory
      d) Agency Theory
      Answer: b) Institutional Theory

    7. Which of the following best describes the Resource Dependency Theory?
      a) It emphasizes the control of managers over corporate decisions
      b) It highlights a company’s dependence on external resources for survival
      c) It focuses only on financial decision-making
      d) It ignores external environmental factors
      Answer: b) It highlights a company’s dependence on external resources for survival

    8. Which theory suggests that conflicts arise because managers (agents) may not always act in the best interests of shareholders (principals)?
      a) Agency Theory
      b) Stewardship Theory
      c) Stakeholder Theory
      d) Institutional Theory
      Answer: a) Agency Theory

    9. Which theory is concerned with aligning executive incentives with shareholder interests?
      a) Managerial Theory
      b) Agency Theory
      c) Finance Theory
      d) Institutional Theory
      Answer: b) Agency Theory

    10. What is the key focus of Finance Theory in corporate governance?
      a) Social responsibility of the firm
      b) Relationship between firms and capital providers
      c) Role of employees in decision-making
      d) Environmental impact of corporations
      Answer: b) Relationship between firms and capital providers


    UNIT 1: Introduction to Corporate Governance

    26. Which corporate governance component ensures decisions are made in a lawful and ethical manner?
    a) Transparency
    b) Accountability
    c) Fairness
    d) Compliance
    Answer: d) Compliance

    27. Which of the following is NOT a role of independent directors?
    a) Protecting minority shareholders' interests
    b) Running the day-to-day operations of the company
    c) Ensuring corporate governance compliance
    d) Evaluating the performance of the board
    Answer: b) Running the day-to-day operations of the company

    28. What is the main purpose of corporate governance codes?
    a) To make businesses more profitable
    b) To establish ethical business practices
    c) To control stock prices
    d) To eliminate competition
    Answer: b) To establish ethical business practices

    29. Which key corporate governance concept involves companies being open about financial reporting and decision-making?
    a) Accountability
    b) Transparency
    c) Authority
    d) Leadership
    Answer: b) Transparency

    30. Which of the following organizations in India is responsible for overseeing financial reporting and accounting standards?
    a) RBI
    b) SEBI
    c) ICAI
    d) IRDAI
    Answer: c) ICAI

    31. What is the role of whistleblowing in corporate governance?
    a) To promote employee incentives
    b) To expose unethical or illegal practices within a company
    c) To increase company profits
    d) To manage marketing strategies
    Answer: b) To expose unethical or illegal practices within a company

    32. Which section of the Companies Act, 2013, mandates the appointment of independent directors?
    a) Section 135
    b) Section 149
    c) Section 248
    d) Section 200
    Answer: b) Section 149

    33. Which of the following is an example of corporate governance failure?
    a) Effective risk management policies
    b) Insider trading scandals
    c) Regular financial audits
    d) Appointment of independent directors
    Answer: b) Insider trading scandals

    34. Which principle ensures that corporate decisions consider all stakeholders, not just shareholders?
    a) Profit Maximization
    b) Stakeholder Inclusiveness
    c) Insider Trading
    d) Market Competition
    Answer: b) Stakeholder Inclusiveness

    35. Who is responsible for appointing statutory auditors in a company?
    a) Board of Directors
    b) Shareholders
    c) Government Agencies
    d) Employees
    Answer: b) Shareholders

    36. Which is a key requirement for listed companies under SEBI (LODR) regulations?
    a) Mandatory corporate donations
    b) Quarterly financial disclosures
    c) Exemption from tax audits
    d) Unlimited tenure for directors
    Answer: b) Quarterly financial disclosures

    37. What is the primary role of the Nomination and Remuneration Committee in corporate governance?
    a) Hiring employees
    b) Deciding executive compensation and board appointments
    c) Managing customer complaints
    d) Supervising marketing campaigns
    Answer: b) Deciding executive compensation and board appointments

    38. Which mechanism ensures that shareholders can voice concerns about company policies?
    a) Dividend Policy
    b) Annual General Meeting (AGM)
    c) Insider Trading Regulations
    d) Managerial Control
    Answer: b) Annual General Meeting (AGM)

    39. Which of the following is NOT considered a stakeholder in corporate governance?
    a) Employees
    b) Shareholders
    c) Competitors
    d) Customers
    Answer: c) Competitors

    40. Which of the following was a major corporate governance scandal in India?
    a) Infosys IPO
    b) Satyam Scandal
    c) Tata Group Expansion
    d) SEBI Regulation Amendments
    Answer: b) Satyam Scandal

    UNIT 2: Corporate Governance Theories

    41. What does the Principal-Agent Problem in corporate governance refer to?
    a) A conflict between majority and minority shareholders
    b) A conflict of interest between managers and shareholders
    c) A conflict between employees and management
    d) A conflict between customers and suppliers
    Answer: b) A conflict of interest between managers and shareholders

    42. Which theory states that managers naturally act in the best interest of the company?
    a) Agency Theory
    b) Stakeholder Theory
    c) Stewardship Theory
    d) Institutional Theory
    Answer: c) Stewardship Theory

    43. Which of the following governance theories focuses on how firms obtain and manage external resources?
    a) Finance Theory
    b) Resource Dependency Theory
    c) Stakeholder Theory
    d) Institutional Theory
    Answer: b) Resource Dependency Theory

    44. According to Stakeholder Theory, corporate governance should focus on:
    a) Maximizing shareholder returns
    b) Benefiting all parties affected by the company’s decisions
    c) Strengthening regulatory frameworks
    d) Improving stock market performance
    Answer: b) Benefiting all parties affected by the company’s decisions

    45. Which governance theory explains how a company is influenced by legal, cultural, and political factors?
    a) Institutional Theory
    b) Stewardship Theory
    c) Agency Theory
    d) Finance Theory
    Answer: a) Institutional Theory

    46. Which governance theory suggests that investors and managers have conflicting goals?
    a) Stakeholder Theory
    b) Stewardship Theory
    c) Agency Theory
    d) Institutional Theory
    Answer: c) Agency Theory

    47. What is the main assumption of Resource Dependency Theory?
    a) Firms operate independently without external influences
    b) Organizations must manage relationships with key external stakeholders
    c) Companies should prioritize short-term profits
    d) Executives always act in shareholders’ best interests
    Answer: b) Organizations must manage relationships with key external stakeholders

    48. Which theory suggests that financial decisions in corporate governance should prioritize capital allocation and investor returns?
    a) Agency Theory
    b) Finance Theory
    c) Stewardship Theory
    d) Institutional Theory
    Answer: b) Finance Theory

    49. Which of the following governance theories is most aligned with ethical decision-making and corporate social responsibility?
    a) Stewardship Theory
    b) Institutional Theory
    c) Stakeholder Theory
    d) Agency Theory
    Answer: c) Stakeholder Theory

    50. Which of the following statements best describes Institutional Theory in corporate governance?
    a) Companies operate in isolation from their external environment
    b) Firms adapt to rules, norms, and cultural expectations in their industry
    c) Corporate governance only depends on financial decision-making
    d) Shareholders have no role in corporate decision-making
    Answer: b) Firms adapt to rules, norms, and cultural expectations in their industry

    UNIT 1: Introduction to Corporate Governance

    51. What is the primary purpose of having a corporate governance code in a company?
    a) To increase the profit margins
    b) To guide corporate policies and practices towards fairness, transparency, and accountability
    c) To limit the company’s social responsibility
    d) To reduce government interference
    Answer: b) To guide corporate policies and practices towards fairness, transparency, and accountability

    52. Which of the following is a characteristic of a company with strong corporate governance?
    a) Opaque financial reporting
    b) Limited board diversity
    c) A commitment to ethical business practices
    d) Short-term profit focus at the cost of stakeholders
    Answer: c) A commitment to ethical business practices

    53. Which committee is usually responsible for overseeing the internal controls of a company?
    a) Audit Committee
    b) Risk Management Committee
    c) Corporate Social Responsibility Committee
    d) Nomination and Remuneration Committee
    Answer: a) Audit Committee

    54. Which one of these is NOT a fundamental pillar of corporate governance?
    a) Fairness
    b) Transparency
    c) Profit Maximization
    d) Accountability
    Answer: c) Profit Maximization

    55. Who is typically responsible for ensuring that corporate governance standards are followed in an organization?
    a) Shareholders
    b) Government
    c) Board of Directors
    d) Internal Auditors
    Answer: c) Board of Directors

    56. What is the purpose of the corporate governance mechanism known as "internal audit"?
    a) To ensure the company maximizes profits
    b) To prevent insider trading
    c) To review and evaluate the effectiveness of internal controls and risk management
    d) To oversee board appointments
    Answer: c) To review and evaluate the effectiveness of internal controls and risk management

    57. What does the "Code of Ethics" in corporate governance refer to?
    a) The standard operating procedures for business activities
    b) A set of guidelines ensuring that employees and directors act with integrity and in the best interest of stakeholders
    c) A list of regulations set by the government
    d) A method for maximizing shareholder value
    Answer: b) A set of guidelines ensuring that employees and directors act with integrity and in the best interest of stakeholders

    58. Which of the following is a challenge in corporate governance?
    a) Ensuring ethical practices in decision-making
    b) Maintaining shareholder focus only
    c) Shortening the tenure of independent directors
    d) Encouraging competition in the market
    Answer: a) Ensuring ethical practices in decision-making

    59. Which of these acts as a safeguard against corporate governance failures, providing protection to stakeholders?
    a) Corporate Social Responsibility
    b) Insider Trading Regulations
    c) Transparent Disclosure of Financial Information
    d) Minimizing Board Diversity
    Answer: c) Transparent Disclosure of Financial Information

    60. Which of the following is a recent development in corporate governance?
    a) Increased importance of corporate social responsibility
    b) Decreased emphasis on independent directors
    c) Removal of legal frameworks on governance
    d) Reduced regulatory controls for public companies
    Answer: a) Increased importance of corporate social responsibility

    UNIT 2: Corporate Governance Theories

    61. Which theory in corporate governance advocates that managers, as stewards, will naturally act in the best interests of the organization?
    a) Stewardship Theory
    b) Agency Theory
    c) Stakeholder Theory
    d) Resource Dependency Theory
    Answer: a) Stewardship Theory

    62. Which corporate governance theory is based on the assumption that managers (agents) act in their own self-interest, potentially at the expense of shareholders (principals)?
    a) Stewardship Theory
    b) Agency Theory
    c) Institutional Theory
    d) Finance Theory
    Answer: b) Agency Theory

    63. In which of the following corporate governance theories is the firm seen as a collection of resources, with a focus on managing and controlling external dependencies?
    a) Resource Dependency Theory
    b) Finance Theory
    c) Stewardship Theory
    d) Agency Theory
    Answer: a) Resource Dependency Theory

    64. Which theory suggests that a company’s governance is shaped by external forces, such as laws, regulations, and societal norms?
    a) Agency Theory
    b) Stakeholder Theory
    c) Institutional Theory
    d) Finance Theory
    Answer: c) Institutional Theory

    65. Which of the following best describes the Stakeholder Theory of corporate governance?
    a) Only shareholders have an interest in the company's governance
    b) Managers should prioritize shareholders' interests above all others
    c) All stakeholders, including employees, customers, and communities, have an interest in the company's performance and governance
    d) The theory focuses solely on minimizing costs for stakeholders
    Answer: c) All stakeholders, including employees, customers, and communities, have an interest in the company's performance and governance

    66. Which governance theory states that companies are embedded in a larger social context and must adapt to external pressures?
    a) Institutional Theory
    b) Agency Theory
    c) Stewardship Theory
    d) Resource Dependency Theory
    Answer: a) Institutional Theory

    67. According to Stewardship Theory, what is the role of executives and managers in the company?
    a) To maximize short-term profits for shareholders
    b) To act as stewards, serving the interests of the organization and stakeholders
    c) To ensure competitive advantage at the expense of ethical concerns
    d) To pursue personal gains from company resources
    Answer: b) To act as stewards, serving the interests of the organization and stakeholders

    68. Which of the following is a criticism of Agency Theory?
    a) It assumes that managers will always act in the best interest of shareholders
    b) It assumes that there is a conflict of interest between managers and shareholders
    c) It ignores the role of external stakeholders
    d) It focuses too much on the long-term interests of stakeholders
    Answer: b) It assumes that there is a conflict of interest between managers and shareholders

    69. Which governance theory focuses primarily on aligning the interests of executives with the long-term goals of the company, often through incentives like stock options?
    a) Finance Theory
    b) Stakeholder Theory
    c) Agency Theory
    d) Stewardship Theory
    Answer: c) Agency Theory

    70. Which of the following does the Resource Dependency Theory focus on in terms of corporate governance?
    a) Maximizing shareholder wealth
    b) Reducing management's influence on company decisions
    c) Managing external dependencies and relationships to secure vital resources
    d) Avoiding external pressures and regulations
    Answer: c) Managing external dependencies and relationships to secure vital resources

    71. What does the Institutional Theory emphasize about corporate governance?
    a) The primary concern is maximizing financial outcomes
    b) Companies should be governed by their internal policies alone
    c) Firms must adapt their governance practices to fit with the social, political, and economic environment
    d) Shareholder profits are the only important factor in governance
    Answer: c) Firms must adapt their governance practices to fit with the social, political, and economic environment

    72. Which of the following governance theories emphasizes ethical decision-making and long-term sustainability over short-term profits?
    a) Finance Theory
    b) Stakeholder Theory
    c) Agency Theory
    d) Stewardship Theory
    Answer: b) Stakeholder Theory

    73. Which corporate governance theory is most likely to focus on the firm’s relationship with key suppliers, customers, and partners?
    a) Resource Dependency Theory
    b) Agency Theory
    c) Stewardship Theory
    d) Finance Theory
    Answer: a) Resource Dependency Theory

    74. In which theory do managers act as agents who are incentivized to maximize shareholders’ wealth, but may be tempted to act in their own self-interest?
    a) Stewardship Theory
    b) Resource Dependency Theory
    c) Agency Theory
    d) Stakeholder Theory
    Answer: c) Agency Theory

    75. Which theory is least concerned with the legal and regulatory environment in which a company operates?
    a) Stewardship Theory
    b) Institutional Theory
    c) Agency Theory
    d) Finance Theory
    Answer: a) Stewardship Theory 


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