EGMC 006
Utilitarianism is a theory of ethics primarily focuses on : A. Employee Welfare, B. Collective Welfare
a. both A and B are false
b. both A and B are correct
c. only A is correct
d. only B is correct
the best option among the following to explain jurisprudence is
a. analysing changes in ethics policy of the company by CII
b. analysis of the cases related to ethics by the supreme court.
c. the philosophy and the theory of law - looking into the purposes for certain laws being enacted.
d. examining existing ethical opinions and standards of behaviour of business organisations.
Corporate governance comprises of _____ activities.
a. Direction and accountability
b. Direction, executive action, supervision and accountability
c. Executive action and direction
d. Direction, supervision and accountability
organizations must protect intellectual property to safeguard it from
a. industrialists
b. investors
c. infringement
d. none of these
criteria for appointment and performance evaluation of independent directors is mentioned in
a. clause 49 of companies act 2014
b. clause 49 (Revised) of companies act 2013
c. clause 35B
d. clause 35A
Consider the following statements and select the correct code. (1) The concept of independent directors was proposed by Kumar Mangalam Birla Committee.
(2) An independent director is a non-executive director of a company who meets the criteria of being independent as prescribed under Companies Act, 2013.
1.Both (1) and (2) are correct.
2.Only (1) is correct.
3.Both (1) and (2) are incorrect.
4.Only (2) is correct.
Lead independent director is
1.Non-executive element on the board
2.Executive element on the board
3.Chairman of the board
4. CEO
Corporate governance comprises of_____
activities.
1.Direction and accountability
2.Direction, executive action, supervision and accountability
3. Executive action and direction
4. Direction, supervision and accountability
Select the correct option for Corporate Social Responsibility dimensions. A. Value creation and profit. B. Profit, people and planet. C. Profit only.
1.All A. Band C are correct.
2.Only B is correct.
3.All A, B and C are false.
4. Only B and C are correct.
If a company decides to a commitment to_____ then it tries to align its policies, values, and behavior with those of the societies in which it operates because, ultimately, superior performance means being in touch.
1.Social consensus
2.Social munificence
3. Social responsibility
4.Shareholder responsibility
Which of the following statement about a whistleblower is INCORRECT?
1.Whistleblower can be an employee at any level management
2.Whistleblowers have no legal protection
3.Whistleblower may fear that he/she will be punished
4.Whistleblower is an employee of the organisation who reports violation of ethics within the organisation.
In 1998 the ______ published a report entitled "Desirable Corporate Governance: A Code", which outlined a series of voluntary recommendations regarding best-in-class practices of corporate governance for listed companies.
1.SEBI
2.RBI
3.None of these
4. CII
A person shall not be appointed as small shareholder director of a company, if the person is not eligible for appointment in terms of ____ Company Rules 2014.
1.Section 149
2.Section 167
3.Section 149(6)
4.Section 164
Lever's most successful product in India is Fair & Lovely, a skin whitening agent that is sold to dark-skinned women in India marketed to help the women find better husbands and better jobs.
Lever is emphasizing its _____ responsibility to make a profit and ignoring its _____ responsibility to help women realize that their appearances are superficial.
1.legal, ethical
2.discretionary, ethical
3.economic, legal
4.economic, discretionary
The CEO of Singham Corp. is not happy by a lack of effort and insights his directors provide during board meetings. The directors are all outsiders, experienced, and run their own successful firms.
The CEO genuinely seeks their greater involvement. What would you recommend?
1.The directors should own stock in the company.
2.Implementation of a director appraisal system.
3.Election of a lead director
4.All of these
_______ decides the age limit and tenure of directors in PSUs and PSBs.
1.Corporate Affairs Department
2.Department of Public Enterprises
3.Human Resources Development Division
4. Labour, Employment and Training Department
_____ reffers to a common understanding ofhuman nature and ethics.
1. Natural law
2.People's law
3. Code of conduct
4. Law of professionals
Evaluation of the board is the responsibility of the
1.Independent Director
2.MD
3.CEO
4.Chairman
The _______ set up J.J. Irani Committee (2005) for providing recommendations and making a simplified modern law of corporate governance.
1.The Confederation of Indian Industry
2.The Securities and Exchange Board of India
3.The Government of India
4. The Supreme Court of India
______ plays an important role in developing a satisfactory ethics management system.
1.Auditor and ethical leader
2.Supervisor and coordinator
3. Ethical leader and coordinator
4. Only an auditor
The total number of directors as independent directors in every listed public company shall be at least
1.Two-third
2.One-third
3.One-half
4. One-fourth
One of the difficulty in maintaining ethical practices in an organisation is
1.Technology limitation.
2.Workforce limitations.
3.Managerial limitations.
4. Honesty and integrity of the employees
The first category of people impacted either directly or indirectly by corporate decisions and actions comprise of
1.Company board of directors
2.Company's employees
3.Business investors
4.Customers
In India regulatory body _____ has tightened laws related control unfair practices to promote ethical behaviour.
1.National Stock Exchange
2.Telecom Regulatory Authority of India
3.NASDAQ
4.Delhi Stock Exchange
A practice for directors to retire after a particular age is the recommendation of:
1. Kumar Mangalam Birla Committee (2000)
2. Reserve Bank of India (RBI) Report of the Advisory Group on Corporate Governance (2001)
3. Naresh Chandra Committee (2002)
4. N.R. Narayana Murthy Committee (2003)
KM. Birla Committee was set up by
1.RBI
2.CII
3.SEBI
4.MCA
The overall objective of a good governance is to
1.make strategic decision
2.maximize long-term shareholders value
3.focus on strategic issues
4.ensure company follows a policy
Increased importance of business ethics in India is due to
1.Increased social anti-sentiment towards unethical behavior
2.Investigative journalism.
3.Both increased social anti-sentiment towards unethical behaviour and investigative journalism
4. None of these
Insider trading refers to the practice of purchasing or selling a publicly-traded company's securities while in possession of
1.both non-public, material information about that company.
2.only non public, about that company.
3.only material information about that company.
4. none of these
Independent director is
1.an Executive Director
2. Inside Director
3.Non-executive Director
4.Chairman
A business activity is bound by the______ and/or addressing the requirements of the supplier as well as the customer
1.Formal commitment
2.Informal commitment.
3.Both formal and informal commitment.
4.None of these
In ________ board there is no separation between ownership and management.
1. all-executive board
2.two-tier supervisory board
3.majority executive board
4. majority outside board
In decision making, micro-impact ethical sphere includes:
1.Business expansion
2.Corporate practices
3.Diversifications
4.Acquisitions
