Module 4: Corporate Governance

Question 1

How can you evaluate the performance of a company’s board of directors?

A. Self-rating
B. Third Party rating
C. Insider assessment rating
D. Any of the above

Answer 1

D. Any of the above

Question 2

Which of the following is an internal control mechanism?

A. Definition of the duties and responsibilities of the Chairman, CEO and other officers
B. Evaluation of proposed senior management appointments
C. All of the above
D. None of the above

Answer 2

C. All of the above

Question 3

Reports reviewed by the Audit Committee:

A. Report of internal auditor
B. Report of external auditor
C. All of the above
D. None of the above

Answer 3

C. All of the above

Question 4

Which of the following is a correct statement?

I. Board meetings can be held outside the Philippines unless otherwise specified in by-laws
II. By-laws can indicate that President & Secretary can be one; President and Treasurer can be one

A. Statement I is true, statement II is false
B. Statement I is false, statement II is true
C. Both statements are true
D. Both statements are false

Answer 4

A. Statement I is true, statement II is false

Question 5

If a chairperson and CEO are one and the same, to ensure that the board gets the Benefit of Independent views and perspective, there should be:

A. Clear delineation of the functions of the Chairperson and CEO
B. Evaluation of performance
C. Checks and balances
D. All of the above

Answer 5

D. All of the above

Question 6

Which of the following best describes the statement below:

I. The Board is accountable to minority shareholders only
II. Any change in External Director should be with the shareholders’ approval

A. Statement I is TRUE while Statement II is FALSE
B. Statement I is FALSE while Statement II is TRUE
C. Both Statement I and II are TRUE
D. Both Statement I and II are FALSE

Answer 6

B. Statement I is FALSE while Statement II is TRUE