Practice Test Geeks(CCCP) Certified Corporate Compliance Professional Practice Test
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Corporate Governance & Ethical Practices Flashcards

7 cards from real CCCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Corporate Governance & Ethical Practices flashcards as text

  1. Which of the following is an example of a 'related-party transaction' that requires board disclosure?

    Answer: A company purchasing services from a firm owned by the CEO's spouse

    Transactions between a company and entities connected to its insiders are related-party transactions requiring disclosure and independent approval.

  2. A 'poison pill' shareholder rights plan is PRIMARILY used to:

    Answer: Dilute a hostile acquirer's stake to make a takeover prohibitively expensive

    Poison pills trigger the right to buy additional shares at a discount if any party acquires a threshold stake, making hostile takeovers more costly.

  3. ESG reporting standards are MOST important for corporate governance because they:

    Answer: Provide investors with material non-financial information to assess long-term risk

    ESG disclosures give investors insight into environmental, social, and governance risks that may materially affect long-term corporate performance.

  4. The 'duty of care' requires corporate directors to:

    Answer: Act with the care an ordinarily prudent person would exercise in a similar position

    The duty of care requires directors to be informed, deliberate, and attentive—exercising the judgment of a reasonably prudent person.

  5. Which of the following is a key characteristic of an 'independent' board director under NYSE listing standards?

    Answer: Has no material relationship with the company that could affect independent judgment

    NYSE standards require that independent directors have no material relationships—financial, familial, or professional—that could compromise their objectivity.

  6. A company's whistleblower protection policy should prohibit which of the following?

    Answer: Any form of retaliation against employees who report in good faith

    Anti-retaliation protections are legally required under Dodd-Frank and SOX and are the cornerstone of effective whistleblower programs.

  7. When evaluating a potential conflict of interest, a compliance professional should FIRST:

    Answer: Identify whether a personal interest could improperly influence a business decision

    Conflict-of-interest analysis begins by determining whether a personal interest exists that could—even if it hasn't—improperly influence a business judgment.