SCDL
Program Name: PGDBA
Subject: Corporate Governance
Assessment Name: CG - Exam
Weightage: 70
Total Marks: 70
Duration: 80 mins
Online Examination:
Online examination is a Computer based examination.
Online examination comprises of Total 29 Questions - Out of 70 marks.
Duration of online examination will be of 1 Hour 20 minutes (80 minutes).
Section - I Instructions:
- It is compulsory and has total 3 Subjective Questions.
- Students are required to solve any 2 Subjective Type Questions. Each question is of 5 marks.
- Section – I is out of 10 Marks.
Please refer following instructions regarding Subjective examination:
- While attempting subjective examination Text formatting facility will be disabled such as use of bullets,
making the text bold, underlining the text etc. Only normal character on the key board will be available.
- Special characters available on the keyboard will be allowed.
- Students can not attempt more than 2 questions out of given 3.
- A blank (space typed) or any entry in the space provided will be considered as question is answered.
- Hand written answers are not allowed. Subjective test can be answered by using key board.
- No brail support shall be provided, but writer assistance shall be allowed. The student has to intimate it to
SCDL well in advance by completing applicable formalities.
- Answers for both the questions should not exceed more than 110 words. The maximum word limit per
answer is 55 words (for Subjective part).
Page 1 of 7
SCDL
1) What in your opinion are the key personal qualities that the board collectively must possess?
(5)
1. Strategic perception and decision-making 2. Analytical understanding 3. Communication 4. Interacting
with others 5. Board management 6. Achieving results It is important to acknowledge that not all directors
will possess each necessary skill but the board as a whole must possess them.
2) Discuss the role of independent directors in investors protection?
(5)
The role of independent directors is paramount to protect investors. Independent Directors are
independent of any bias towards the company and the Board. Their primary duty is to provide an
unbiased, independent and experienced third party perspective to the board. Attributes for independent
directors such as integrity, experience and expertise, foresight, managerial qualities and ability to read and
understand financial statements, as well as procurement of a Certificate of Independence from such
independent directors at the time of their appointment are key to the impartial working and protection of
investors by independent directors.
3) Explain the term insider trading.
(5)
When people, who have access to price sensitive information, trade in securities with the aid of such
information, it amounts to insider trading. As it gives them an unfair advantage over the rest, it defies fair
play in the market and erodes the confidence of the investors. The effect of insider trading on the small
investor is negative both from the point of view of their financial interest and also their confidence in the
markets. Insider trading creates information asymmetry. It is extremely detrimental to the growth of a
healthy capital market, where all participants, big and small, can step in with confidence of a fair play. In
an efficient market, even one share traded on insider trading violates the integrity of the market.
Section 1 is complete.
Please click on "Next" button to proceed.
Section - II Instructions:
- It comprises of Objective Questions Only.
- Total 60 marks are allotted for objective type questions.
- The objective questions are of following type and carries marks as given under.
Multiple Choice Multiple Response : 4 Questions - 16 Marks (Each 4 marks)
Multiple Choice Single Response : 9 Questions - 18 Marks (Each 2 marks)
True or False : 5 Questions - 5 Marks (Each 1 mark)
Page 2 of 7
SCDL
Select a Blank : 5 Questions - 5 Marks (Each 1 mark)
Match the Column : 4 Questions - 16 Marks (Each 4 marks)
Total Questions : 27
Total Marks : 60
1) Sarbanes-Oxley Reform Act of 2002 was the result of the collapse of:BLANK an energy giant ( world
com, ONGC)
(1)
1] Enron
2] IBM
3] Microsoft
4] World com
2) Sensitivity of the Board means
(2)
1] The board is representative of different constituencies and viewpoints.
2] Members of the board maintain a productive working relationship with one another and with the
executive director
3] The board is organized in such a way that individuals and committees assume a proper and active role in
its functions.
4] The Board consists of members who have lot of feelings
3) Any one of the following is disqualifications for a director
(2)
1] unsound mind
2] Insolvency
3] committing moral turpitude
4] unsound mind and insolvency and committing moral turpitude
4) A record of the proceeding of the Board meetings are in the form of :BLANK .
(1)
1] Minutes
2] Resolutions
3] Contracts
4] Reports
5) Differences in talents, skills, experience, interest, and social background speak of the :BLANK of the
Board.
(1)
1] Adaptability
2] Diversity
3] Knowledge
4] Expertise
6) Accountability is a concept in ethics and governance often used to mean responsibility and answerability
and other terms associated with the expectation of account-giving.
(1)
Page 3 of 7
SCDL
1] True
2] False
7) Independent directors in the Board can
(2)
1] counterbalance management weakness in a company
2] ensure legal and ethical behaviour at the company
3] be a source of well-conceived, binding, long-term decisions of the company
4] it is inclusive of all
8) Credit rating will help
(2)
1] to assess the value of the securities
2] to guide the investors regarding investing
3] reflect the good governance practices of the company
4] it is inclusive of all
9) When shares are issued in place of dividend it is called as :BLANK .
(1)
1] Bonus issue
2] rights issue
3] preferential issue
4] private issue
10) The basic functions of the Reserve Bank is to regulate the issue of Bank Notes and keeping of reserves
with a view to securing monetary stability in India
(1)
1] True
2] False
11) Corporate criminality represents the means through which the trust of investors is betrayed by persons in
position of responsibility, authority and power in the business sector
(1)
1] True
2] False
12) Empowereing shareholders would involve
(2)
1] making them financially literate
2] help them under the risk in investments
3] empower them by making them aware of their rights
4] it is inclusive of all
13) Companies integrate :BLANK in their business operations under CSR
(1)
1] social and environmental concerns
2] RISK and return
3] economic profit and loss
4] market capitalisation
Page 4 of 7
SCDL
14) Match the Following
(4)
1] Mismanagement is understood to mean 1] misuse of corporate funds and resources
2] Oppression involves a conduct which is 2] unfair, harsh and prejudicial towards a section of
3] Sustainability in consumption pattern is shareholders
essential 3] if we are looking at long time existence and well being
4] Sale of Assets of the Company at low price of the human race and that of the Earth’s resources.
and without compliance with the Act is an 4] act amounting to Mismanagement
5] Proper and efficient management of business
6] Act amounting to distress sale
15) Proposed declaration of dividend is price sensitive information.
(1)
1] True
2] False
16) Indian committees on corporate governance include
(4)
1] CII Committee
2] Sebi committee
3] Naresh chandra committee
4] Sarbanes Oxley act
17) Risk cover for depositors include
(2)
1] undertaking deposit insurance
2] repay back deposit amounts on time
3] bring action against default companies
4] redemption of deposits with extra interest
18) SEBI has notified the disclosures and other related requirements for companies desirous of issuing Indian
depository receipts in India by mandating that
(4)
1] the issue has to be credit rated
2] the issuer must be listed in its home country;
3] it must not have been barred by any regulatory body; and
4] it should have a good track record of compliance of securities market regulations
19) The different kinds of scams that were rampant during the 90's were the
(4)
1] The Harshad Mehta scam
2] the IPO scam
3] The ketan parekh scam
4] the EPF SCAM
20) The disadvantage of globalisation is that
(2)
1] it has made corporations vulnerable to greater risk, abuse and fraud on a global scale
2] it had made the environment competitive
Page 5 of 7
SCDL
3] it has improved the corporate governance standard
4] it has caused the destruction of indigenous markets
21) Every transaction must have a counter-party for the transaction to go through
(1)
1] True
2] False
22) Match the Following
(4)
1] From the point of view of the firm, globalization 1] greater competition
implies 2] had a major impact on the organization of firms
2] Globalization of markets for intermediate products 3] for ensuring the efficiency of investment.
has 4] significant pressures on corporate governance
3] Good corporate governance is critical systems.
4] Economic globalization places 5] lesser competition and more protection
6] no pressure on corporate governance system
23) The role of which Directors is paramount to protect Investors
(2)
1] independent directors
2] additional Directors
3] Managing Directors
4] alternate Director
24) Shareholders need protection because
(4)
1] Shareholders in general are quite passive and non assertive about their rights
2] the shareholders are a disorganised body
3] there are not in a position to closely monitor the company, given the expenses-return trade off of such
monitoring
4] shareholders are too many people
25) Match the Following
(4)
1] Due to deregulation and institutionalization of the capital 1] on investor protection.
market a lot of emphasis is now 2] are now being preferred as a vehicle for
2] Retail investor investor justice.
3] Functions of SEBI are 3] the business in stock exchanges and any
4] Class action suits other securities markets.
4] are representative suits .
5] invests in large amount
6] are individual suits.
26) Transactions between close associates could often be a
(2)
1] Related Party transactions
2] insider trading
3] abusive transactions
4] market transactions
Page 6 of 7
SCDL
27) Match the Following
(4)
1] Every business has to incur 1] a private cost and a social cost
2] Rapid industrialisation and 2] development has also caused a lot of damage to the environment.
urbanization ha 3] if we are looking at long time existence and well being of the human
3] Sustainability in consumption race and that of the Earth’s resources.
pattern is essential 4] is one the primary indicators used to gauge the health of a country's
4] The gross domestic product economy.
(GDP) 5] about how companies manage the business processes to produce an
overall positive impact on society.
6] a company will be looking at ways of minimizing fuel consumption to
take care of the environmental.
Section 2 is complete.
Please click on "Next" button to proceed.
Page 7 of 7
