Free Corporate Governance Questions and Answers

Question 1

Which of the following is not one of the corporate governance Combined Code of Practice's guiding principles?

Accepted Answer

acceptability

Answer

openness

Answer

integrity

Answer

accountability

Question 2

Director duties are not likely to involve

Accepted Answer

a duty to propose high dividends for shareholders

Answer

a duty of care

Answer

a duty to keep proper accounting records

Answer

a fiduciary duty

Question 3

A business could become bankrupt if ...

Accepted Answer

cannot pay creditors in full after realization of its assets

Answer

has negative working capital

Answer

cannot meet its budgeted level of profit

Answer

makes a loss

Question 4

Breach of the _________ may result in disqualification of directors.

Accepted Answer

Companies Act 2016 and Insolvency Act 1986

Answer

Health and Safety at Work Act 1974

Answer

Sales of Goods Act 1979

Answer

Financial Services Act 1986

Question 5

According to the 2013 Company Act, public companies must have a minimum number of directors.

Accepted Answer

three

Answer

one

Answer

two

Answer

four

Question 6

Which of the following can contribute to effective governance?

Accepted Answer

all of the above

Answer

diversity of board

Answer

longer vision of board

Answer

small size of board

Question 7

What would be a potential solution if a company wants to select more than 15 directors?

Accepted Answer

special resolution

Answer

ordinary resolution

Answer

amending AOA

Answer

Amending MOA