Q. Which of the following would most effectively act as the primary objective of a business organisation?
✅ Correct Answer: (A)
To make a profit
Corporate Governance MCQs and Notes
Q. A sets out the purpose and general direction for the organisation?
✅ Correct Answer: (A)
Mission statement
Q. What is triple bottom line?
✅ Correct Answer: (A)
An accounting tool that looks at the impact on people, planet and profits.
Q. What is green washing?
✅ Correct Answer: (B)
Making a product appear more ethical that it really is.
Q. What is the enlightened self-interest model of CSR?
✅ Correct Answer: (C)
That it is in an organization's own best interest to act in an ethical way.
Q. Why, according to stakeholder theory, is it in companies' best interests to pay attention to their stakeholders?
✅ Correct Answer: (D)
If firms only act in their own self-interest and inflict harm on stakeholders then society might withdraw its support.
Q. What, according to Adam Smith, is the best way to promote collective interest?
✅ Correct Answer: (C)
Through everyone working on their own self interest
Q. What is meant by the phrase 'teleological ethics'?
✅ Correct Answer: (B)
An action can only be judged by its consequences
Q. Which act provides sweeping new legal protection for employees who report possible securities fraud making it unlawful for companies to “discharge, demote, suspend, threaten, harass, or in any other manner discriminate against” them?
✅ Correct Answer: (A)
Sarbanes-Oxley Act of 2002
Q. Shareholders have the right to know all except:
✅ Correct Answer: (B)
Trade secrets