Circle the best answer for the following 18 Multiple Choice Questions.

1.

The following are factors affecting public expectations for business behaviour, with an exception to:

A

Bad judgement.

B

Activist shareholders.

C

Governance failures.

D

Financial malfeasance.

2.

The best to describe a good governance of corporations which is expected by the public is

A

The practice of window-dressing of financial statements to impress the shareholders group.

B

The existence of audit committee in a company to oversee the financial reporting process.

C

The existence of duality roles in management of a corporation.

D

The internal control function in a company is only performed whenever necessary.

3.

Choose the incorrect statement in relation to Utilitarianism

A

An ethical action is the one that produces the greatest amount of pleasure.

B

An ethical action is the one that produces the least amount of pain.

C

Pleasure and pain only involved qualitative aspect.

D

Pleasure and pain may be both physical and mental.

4.

Which one of the following statements is incorrect regarding Deontology Ethics?

A

Deontology refers to duty or obligation.

B

An action is right if it does not produce a net balance of good or evil for the decision maker or for society as a whole.

C

The decision maker is making a right act when his/her action might increase his/her pleasure or happiness.

D

A good action will manifest itself when it is done for the sake of duty.

5.

The statement that best relates to Stage 5 of Kohlbergs Cognitive Moral Development is

A

I will wear the best dress that matches the dinner theme to ensure the host will allow me to be in the hall.

B

I will respect my mothers decision because that does respect her rights as an individual in the society.

C

I will only drive the car if I have a driving license as I respect the laws.

D

If I manage to submit the assignment on time, my lecturer may reward bonus marks for my effort and it will prevent me from any penalties for late submission.

6.

The main distinction of altruism and consequentialism is

A

Both theories indicate an action is ethically right if it brings good consequences to others, including the actors.

B

Altruists emphasis on benefits gained by others but not themselves, consequentialists focus on benefits gained by all including themselves.

C

Altruism is often seen as a form of consequentialism, benefits enjoyed by other stakeholders are the main concern.

D

A consequentialist always sacrifices their self-interest to fulfil others whereas, Altruist is said to enjoy the benefits gained from an ac

7.

Factors that increase the tendency of employees to commit fraud at the workplace include:

i. Favouritism among employees

ii. Proper internal control system is in place

iii. Loose monitoring on workplace ethics

iv. In existence of effective whistleblowing policy

A

i and iii

B

i and ii

C

iii and iv

D

ii and iv

8.

Responsible employers are expected to exercise the following rights to employees at workplace:

i. Healthy work space

ii. Male and female staff are given an equal chance of holding administrative position

iii. Safe and conducive working place iv. Promoting blind loyalty

A

i, ii and iii

B

i, ii and iv

C

ii, iii and iv

D

All of the above

9.

When a professional accountant faces choices which amounts to conflict or breach,he/she should always:

i. ii.

iii.

Think objectively and take his/her preferences out of the equation

Act professionally and seek guidance from the current codes of professional

conduct

Reflect on the situation and continue to learn and develop

A

Only i and ii are correct

B

Only ii and iii are correct

C

Only i and iii are correct

D

All i, ii and iii are correct

10.

Suzana is the independent non-executive director of Melisa Bhd, a plantation company. Malim Bhd is known as a rival of Melisa Bhd. Suzana unintentionally shares the strategies of Melisa Bhd in submitting a proposal to get the government contract to Azman, her old friend who is now working with Malim Bhd as general manager. From this scenario, assess the fundamental principles possibly violated by Suzana.

A

Integrity and Professional Competency.

B

Integrity and Confidentiality.

C

Objectivity and Professional Behaviour.

D

Objectivity and Integrity.

11.

Which of the following statements in relation to Sustainable Development is not true?

A

Sustainable Development is defined as the development that meets the needs of present without compromising the ability of our future generations to meet their own needs.

B

Sustainable Development has its main objective to purely focusing on the natural environment.

C

Sustainable Development of various countries and the entire world is the only solution left with mankind to survive for a longer period on earth.

D

Sustainable Development not only considers the protection of the environment but also the maintenance of economic viability as well as the social and ethical considerations.

12.

Sustainable Development will not aim at:

A

Social economic development which optimises the economic and societal benefits available in the present, without spoiling the likely potential for similar benefits in the future.

B

Reasonable and equitably distributed level of economic well-being that can be perpetuated continually.

C

Development that meets the need of the present without compromising the ability of future generations to meet their own needs.

D

Maximising the present-day benefits through increased resource consumption.

13.

Agency theory refers to:

A

Providing value to all company's stakeholders.

B

The appointed directors are to ensure the best interest of the shareholders are being met.

C

Corporations providing value by combining the key factors of production in a manner than markets cannot.

D

The directors are to provide companies with the access to resources that they could not gain through market or management links.

14.

Choose the right answer on the role of the Minority Shareholder Watchdog Group (MSWG).

A

Creates relationship and networking with the primary corporate governance reference and research group.

B

Strengthens corporate disclosure pillars on accountability and transparency.

C

Improves and promote the availability of company information in Malaysia.

D

Safeguards the interest of minority shareholders.

15.

All of the following are true about Corporate Governance, except

A

Process and structure used to direct and manage the business and affairs of the Company.

B

Effective corporate governance will reduce monitoring and bonding costs.

C

Concerned with shareholder interests but requires balancing the needs of other Stakeholders.

D

Corporate governance is present only in the reporting of listed companies.

16.

Directors functional responsibilities include:

i. Safeguard the interest of the companys shareholders

ii. Ensure that the companys share price is at the maximum iii. Ensure that the company's share price is not overvalued iv. Select and compensate the company's senior executives

A

i, ii and iii

B

i and iv

C

ii, iii and iv

D

i, ii, iii and iv

17.

The following are the rationales for the issuance of the revised Malaysian Code of Corporate Governance 2021 (MCCG 2021) on 28 April 2021, except

A

To ensure the corporations will only follow the Code for reporting process and ignore other related Acts, Laws and Requirements.

B

To ensure the latest requirements of the Code are in line with the changes in the business environment and other stipulated requirements.

C

To enhance greater disclosure on corporate reporting for Malaysian corporations at the same time to assist better decision-making process.

D

To promote awareness on certain aspects of disclosure which needed greater attention.

18.

Inflated directors remuneration is an unethical practice that can lead to corporate failure and tarnish the shareholders value. Demonstrate how the remuneration committee should refrain from this issue.

A

show an appropriate level of vigilance and scepticism towards detection of any financial irregularities in the financial statements.

B

establish a committee to assist the board in developing and administrating a fair and transparent procedure for setting policy on remuneration of directors.

C

provide a clause to the directors to decide on their remuneration based on their skills and experience and this policy shall be made available on the companys website.

D

ensure the remuneration and incentives for directors conflicting with their obligation to bring objectivity and independent judgment on matters discussed at board meetings.