Governance Basics
This system ensures transparency and accountability in a company.
A) Corporate Governance
B) Corporate Finance
C) Marketing Strategy
D) Tax Planning
Corporate Governance
LODR stands for:
A) Legal Operational Disclosure Rules
B) Listing Obligations and Disclosure Requirements
C) Listed Order Debt Rules
D) Legal Organization Disclosure Regulation
Listing Obligations and Disclosure Requirements
The current Companies Act was enacted in:
A) 1956
B) 2010
C) 2013
D) 2020
2013
CSR becomes mandatory if a company’s net profit exceeds:
A) ₹1 crore
B) ₹3 crore
C) ₹5 crore
D) ₹10 crore
₹5 crore
The Satyam scandal primarily involved manipulation of:
A) CSR funds
B) Shareholding pattern
C) Financial statements and cash balances
D) Dividend declarations
Financial statements and cash balances
These two bodies regulate corporate governance in India.
A) RBI & IMF
B) MCA & SEBI
C) GST Council & RBI
D) NITI Aayog & SEBI
MCA & SEBI
SEBI LODR applies to:
A) All companies
B) NGOs
C) Listed companies
D) Only private companies
Listed Companies
Section 166 deals with:
A) CSR
B) Duties of Directors
C) RPT
D) Insider Trading
Duties of Directors
Under Section 135, companies must spend this percentage of their average net profits of the last 3 financial years on CSR:
A) 1%
B) 2%
C) 3%
D) 5%
2%
The IL&FS crisis highlighted failure mainly in:
A) Employee welfare
B) Corporate marketing
C) Risk management and debt oversight
D) CSR compliance
Risk management and debt oversight
This 2009 scandal led to major governance reforms in India.
A) Yes Bank Crisis
B) IL&FS Collapse
C) Satyam Scam
D) Kingfisher Case
Satyam Scam
This mandatory committee oversees financial reporting.
A) Sales Committee
B) Marketing Committee
C) Audit Committee
D) CSR Committee
Audit Committee
Section 188 relates to:
A) CSR
B) Independent Directors
C) Related Party Transactions
D) Audit
Related Party Transactions
If a company fails to spend CSR money and it is NOT related to an ongoing project, the unspent amount must be transferred to:
A) Company’s retained earnings
B) Prime Minister’s Relief Fund
C) A Schedule VII specified fund
D) CSR Committee account
A Schedule VII specified fund
In the Yes Bank crisis, the major governance concern was:
A) Strong board independence
B) Concentration of decision-making power and poor credit risk assessment
C) Excessive CSR spending
D) Transparent disclosures
Concentration of decision-making power and poor credit risk assessment
One key objective of corporate governance is to protect:
A) Only promoters
B) Only employees
C) Shareholders & stakeholders
D) Only government
Shareholders & stakeholders
These transactions require approval to avoid conflict of interest.
A) Foreign Direct Investment
B) Related Party Transactions
C) Employee Transfers
D) Dividend Payments
Related Party Transactions
Section 177 establishes the:
A) CSR Committee
B) Audit Committee
C) Risk Committee
D) Nomination Committee
Audit Committee
Which of the following will NOT qualify as CSR expenditure under Section 135?
A) Funding a rural sanitation project through a registered trust
B) Donation to a Schedule VII government relief fund
C) Sponsoring a company-branded sports event primarily for advertising
D) Supporting skill development for underprivileged youth
Sponsoring a company-branded sports event primarily for advertising
In the Tata vs Cyrus Mistry dispute, the key governance debate revolved around:
A) Violation of CSR spending rules
B) Tax avoidance practices
C) Role, accountability, and independence of the Board
D) Insider trading under SEBI
Role, accountability, and independence of the Board
Good governance increases investor confidence mainly by:
A) Hiding risks
B) Guaranteeing profits
C) Improving transparency
D) Reducing taxes
Improving transparency
This crisis exposed weak board oversight and excessive debt in a major infrastructure company.
A) Yes Bank
B) Satyam
C) IL&FS
D) HUL
IL&FS
Section 134 requires preparation of the:
A) CSR Policy
B) Board's Report
C) Financial Audit
D) Shareholder Agreement
Board's Report
Tata Group’s COVID-19 oxygen plant funding and rural healthcare programs are valid CSR activities because they fall under:
A) Political contributions
B) Marketing expenditure
C) Schedule VII permitted CSR activities
D) Employee welfare expenses
Schedule VII permitted CSR activities
A listed company conceals rising bad loans, delays disclosure to stock exchanges, and its independent directors fail to question management decisions. Which governance principles are most clearly violated?
A) Only CSR provisions
B) Only Section 135
C) Transparency, disclosure norms under SEBI LODR, and board oversight duties
D) Dividend distribution policy
Transparency, disclosure norms under SEBI LODR, and board oversight duties