CBS CBS Corporate Governance & Ethics 2

Question 1

A board audit committee is primarily responsible for:

Accepted Answer

Overseeing financial reporting and external auditors

Answer

The audit committee oversees financial reporting integrity, internal controls, and the relationship with external auditors.

Question 2

The term 'fiduciary duty' in corporate governance means board members must:

Accepted Answer

Act in the best interests of the corporation and its shareholders

Answer

Fiduciary duty requires board members to act loyally and in good faith in the best interests of the corporation and its shareholders.

Question 3

Which governance principle holds that board members should have access to accurate and timely company information?

Accepted Answer

Transparency

Answer

Transparency as a governance principle ensures board members and stakeholders receive accurate, timely, and complete information to make informed decisions.

Question 4

ESG investing integrates which three factors into investment decisions?

Accepted Answer

Environmental, Social, Governance

Answer

ESG stands for Environmental, Social, and Governance — three criteria used to evaluate a company's ethical impact and sustainability alongside financial performance.

Question 5

An independent board director is best described as someone who:

Accepted Answer

Has no material relationship with the company that could impair objectivity

Answer

An independent director has no material financial or personal ties to the company, enabling impartial oversight of management.

(CBS) Certified Business Strategist Practice Test

(CBS) Certified Business Strategist Practice Test

CBS CBS Corporate Governance & Ethics 2