Financial Management And Corporate Governance

20 Questions

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Corporate Governance Quizzes & Trivia

Questions and Answers
  • 1. 
    Insufficient working capital results in
    • A. 

      Block of cash

    • B. 

      Loosing interest

    • C. 

      Lack of production

    • D. 

      Lack of smooth flow of production

  • 2. 
    The liability which should be paid within a period of one year is known as
    • A. 

      Current asset

    • B. 

      Current liability

    • C. 

      Fixed asset

    • D. 

      Variable asset

  • 3. 
    The management of current assets is known as
    • A. 

      Current asset management

    • B. 

      Working capital management

    • C. 

      Both a & b

    • D. 

      None

  • 4. 
    The basic feature of a merger is
    • A. 

      Transfer of assets

    • B. 

      Transfer of management

    • C. 

      Transfer of control

    • D. 

      All of the above

  • 5. 
    Share exchange ratio is a ratio between the shares of Target firm and
    • A. 

      Target firm

    • B. 

      Acquiring firm

    • C. 

      Merged firm

    • D. 

      None

  • 6. 
    If current assets are less than current liabilities, an entity has a ___________________
  • 7. 
    _________________________ identify the appropriate source of financing
  • 8. 
    __________________ are all assets that can readily convert to cash to pay outsanding debts and cover liabilities.
  • 9. 
    _______________________  refers to the efficiencies primarily associated with demand side changes, such as increasing or decreasing the scope of marketing and distribution, of different types of products.
  • 10. 
    A low number of days indicates that the company collects its outstanding ________________ quickly
  • 11. 
    Most of the organisations are producing value-based codes and building values into their corporate strategies, for all of the following reasons EXCEPT which one?
    • A. 

      Corporate values are important for giving guidance to staff about what the expectations an employer has of them with regard to their behaviour.

    • B. 

      Corporate values are made mandatory under the statutory laws, and failure to comply amounts to legal breach.

    • C. 

      Corporate values seek to ensure a consistency of conduct across the entire organisation.

    • D. 

      Corporate values directly relate to organisation’s risk management strategies and supports reputation and credibility.

  • 12. 
    i A company director could act in breach of the duty of care, and yet could still comply with the principles of corporate governance. ii A professional accountant acting as a company director has got a strict duty of care towards the shareholders. Which of the following is CORRECT in relation to the above statements?
    • A. 

      I only

    • B. 

      Ii only

    • C. 

      I and ii

    • D. 

      None of them

  • 13. 
    Which ONE of the following is the highest court in Nigeria?
    • A. 

      The Court of Appeal

    • B. 

      The Supreme Court

    • C. 

      The High Court

    • D. 

      The Crown Court

  • 14. 
    Which of the following examples of performance amounts to good consideration? (i) The performance of an existing duty under the general law. (ii) The performance of an existing contract in return for a promise by a third party. (iii) The performance of an act, followed by a promise to pay for that act.
    • A. 

      (i) only

    • B. 

      (ii) only

    • C. 

      (i) and (ii) only

    • D. 

      (iii) only

  • 15. 
    Legal and disciplinary frameworks provide ALL of the following EXCEPT which one?
    • A. 

      An effective means of challenging serious wrong-doing

    • B. 

      Deterrents to bad practice through punishment and censure

    • C. 

      Means of controlling behaviour

    • D. 

      Financial compensation only to the affected parties

  • 16. 
    ‘How much recycling of waste and paper undertaken by an organisation?’ relates to which one of the following?
    • A. 

      Corporate governance of an organisation

    • B. 

      Corporate values of an organisation

    • C. 

      Social responsibility of an organisation

    • D. 

      Corporate policy towards sustainability

  • 17. 
    The system by which companies are directed and controlled is called
    • A. 

      Corporate regulations

    • B. 

      Corporate governance

    • C. 

      Corporate administration

    • D. 

      Corporate compliance

  • 18. 
    Which ONE of the following remedies is NOT available for a breach of a contract to provide personal services?
    • A. 

      Damages

    • B. 

      A decree of specific performance

    • C. 

      An injunction

    • D. 

      An action for the price

  • 19. 
    Which ONE of the following is not an equitable remedy?
    • A. 

      Damages

    • B. 

      Specific performance

    • C. 

      Rescission

    • D. 

      Injunction.

  • 20. 
    Which ONE of the following correctly describes the "maintenance of capital" principle?
    • A. 

      A company cannot use its share capital which must be set aside as a fund for creditors

    • B. 

      In general, a company can use its share capital for any reason whatsoever, as long as it ensures that there is sufficient remaining to meet the company’s debts

    • C. 

      In general, a company must use its capital for the purposes of the compant and cannot return it to its members

    • D. 

      A company cannot use its share capital and may only return it to its members with the permission of the court