CGA CGA Business Law & Governance 3

Question 1

Which type of intellectual property protection is most appropriate for a company's brand name and logo?

Accepted Answer

Trademark

Answer

Trademarks protect brand names, logos, and other identifiers that distinguish goods or services, and can be maintained indefinitely through continued use and renewal.

Question 2

What is the primary purpose of corporate governance frameworks such as those recommended by the COSO?

Accepted Answer

To provide guidance on internal controls, risk management, and ethical governance

Answer

COSO provides widely adopted frameworks for enterprise risk management and internal control that strengthen governance and accountability.

Question 3

In agency law, when is a principal liable for the torts committed by an independent contractor?

Accepted Answer

Only when the work is inherently dangerous or the principal was negligent in selection

Answer

While principals generally are not liable for independent contractor torts, exceptions exist for inherently dangerous activities and negligent hiring or supervision.

Question 4

Which of the following best describes a 'derivative lawsuit' brought by shareholders?

Accepted Answer

Shareholders suing on behalf of the corporation for harm done to the corporation

Answer

In a derivative lawsuit, shareholders sue on the corporation's behalf (not their own) to recover damages for harm suffered by the company, typically due to director or officer misconduct.

Question 5

Which international framework provides principles for corporate governance adopted by many countries?

Accepted Answer

OECD Principles of Corporate Governance

Answer

The OECD Principles of Corporate Governance are internationally recognized standards covering shareholder rights, board responsibilities, and disclosure requirements.

(CGA) Certified General Accountant Practice Test

(CGA) Certified General Accountant Practice Test

CGA CGA Business Law & Governance 3