Learning Outcome 3 Understand the main aspects of corporate governance (Chapter 4)

Question 1

Which one the following is NOT addressed in the UK Corporate Governance Code

A. Leadership
B. Effectiveness
C Profitability
D. Accountability

Answer 1

C Profitability

Question 2

Which corporate governance guidance sets out best practice on internal control for UK listed companies?

A. Guidance on Board Effectiveness
B. Turnbull Guidance
C. Sarbanes-Oxley Act
D. FRC Guidance on Audit Committees

Answer 2

B. Turnbull Guidance

Question 3

A company’s registration documents will include
A. the company’s financial performance
B the company’s risk management strategy
C. the company’s budget
D. the company’s registered office

Answer 3

D. the company’s registered office

Question 4

The document that has to be provided to Companies House annually and includes the company's registered office address, the principal business activities of the company, details about the company's directors etc. is known as:
A. Articles of Association
B. Report and accounts
C. Directors' report
D. Annual return

Answer 4

D. Annual return

Question 5

How many statutory company registers are there?
A. 2
B. 5
C. 4
D. 3

Answer 5

B. 5

Question 6

What is the third line of defence in the three lines of defence model?
A. Risk assurance
B Risk management
C. Business managers
D. Insurance

Answer 6

A. Risk assurance

Question 7

The risk that an insurer does not recover from their reinsurers due to the insolvency of the reinsurer falls in what category of risk?
A Strategic
B Credit
C Insurance
D Operational

Answer 7

B Credit

Question 8

The process of ensuring that data is reviewed to ensure it is kept in a standard format is known as:
A Data protection
B Data standardisation
C Data subject
D Data cleansing

Answer 8

D Data cleansing

Question 9

Which of the following is NOT a principle under the Data Protection Act 1998
A Data must be stored electronically
B Data must be processed for specified purposes
C Data must be adequate, relevant and not excessive
D Data must be kept no longer than is necessary

Answer 9

A Data must be stored electronically