Based on your understanding on the topic of 'Corporate Governance' answer questions 1 through 10

Question-1: Board of directors represents shareholders of a corporation by performing which of the following duties?

Select one:

a. Approving amendment to articles of incorporation.

b. Assisting management in preparation of financial statements.

c. Providing governance oversight.

d. Voting on issues of fundamental changes affecting the corporation.

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Question 2

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Following the formation of a corporation, which of the following terms best describes the process by which the promoter is released from, and the corporation is made liable for, pre-incorporation contractual obligations?

Select one:

a. Assignment

b. Novation

c. Delegation

d. Accord and satisfaction

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Question 3

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Form of management compensation that will encourage management to take excessive risks is:

Select one:

a. Salary plus a bonus based on profits of current period.

b. A fixed salary.

c. Salary plus stock options that cannot be exercised for 10 years.

d. Salary plus equity stock options.

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Question 4

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Internal Auditing is defined by the Institute of Internal Auditors as:

Select one:

a. Interdependent attestation service

b. Independent, objective assurance and consulting activity

c. Integrated program audit

d. Institutional improvement system

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Question 5

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International Standards for the Professional Practice for Internal Auditing (ISPPIA) include rules and interpretations for which of the following types of services? I. Assurance. II. Consulting. III. Financial. IV. Review. V. Operations. VI. Compliance. VII. Taxation.

Select one:

a. I and II only.

b. II, III IV, V and VI only.

c. I, II, III, IV and VII only.

d. All of above.

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Question 6

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Pursuant to the Sarbanes-Oxley Act of 2002, an accountant who destroys documents to impede an investigation by a U.S. agency can be

Select one:

a. Suspended or barred from being associated with a registered public accounting firm or be required to end such association.

b. Temporarily or permanently limited on the activities, functions or operations conducted on behalf of a registered public accounting firm.

c. Fined and / or imprisoned not more than 20 years.

d. Fined and / or imprisoned not more than 10 years.

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Question 7

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Stockholders of a corporation have a right to:

Select one:

a. Receive dividend annually.

b. Sue board member on behalf of corporation.

c. Determine management compensation.

d. Determine corporations mission.

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Question 8

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The Business Judgment Rule is a rule that immunizes corporate:

Select one:

a. Management from liability for actions that result in corporate losses or damages if the actions are undertaken in good faith but are not within the power of the corporation or the authority of management to make.

b. Management from liability for actions that result in corporate losses or damages if the actions are undertaken in good faith and are within both the power of the corporation and the authority of management to make.

c. Shareholders from liability for actions that result in corporate losses or damages if the actions are undertaken in good faith and are within both the power of the corporation and the authority of shareholders to make.

d. Shareholders from liability for actions that result in corporate losses or damages if the actions are undertaken in good faith but are not within the power of the corporation or the authority of shareholders to make.

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Question 9

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Under the Revised Model Business Corporation Act, which of the following items of information should be included in a corporation's articles of incorporation (charter)?

Select one:

a. Name and address of each pre-incorporation subscriber.

b. Nature and purpose of the corporation's business.

c. Name and address of the corporation's promoter.

d. Election of either C corporation or S corporation status.

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Question 10

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Which of the following form part of articles of incorporation as compared to bylaws of a corporation?

Select one:

a. Process for bylaw amendment.

b. Powers of the corporation.

c. Election procedure for directors.

d. Types of officers to be appointed.