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Copyright 2004. Amity.

Amity Center for eLearning


J-Block, Amity Campus
Sec-44, NOIDA (UP)
India 201303

ASSIGNMENTS

ADL-08 : CORPORATE GOVERNANCE - A QUESTION OF ETHICS


Subject Name & Code : Corporate Governance - A Question of Ethics
Study Centre :
Permanent Enrollment Number (PEN) :
Student Name :


INSTRUCTIONS

a) Students are required to submit three assignments

ASSIGNMENT DETAILS MARKS
Assignment A Five Subjective Questions 15
Assignment B Three Subjective Questions + Case Study 15
Assignment C 45 Objective Questions 10

b) Total weightage given to these assignments is 40%.
c) All assignments are to be completed in your own hand writing/typed.
d) All questions are required to be attempted.
e) All the three assignments are to be completed by due dates (specified from time to time)
and mailed/given by hand for evaluation at the ACeL office Noida/your Study Centre.
f) The evaluated assignments can be collected from your study centre/ACeL office after six
weeks. Thereafter, these will be destroyed at the end of each semester.


Signature : _________________________
Date : _________________________


( ) Tick mark in front of the assignments submitted

Assignment 'A' Assignment 'B' Assignment 'C'



Copyright 2004. Amity.

ADL-08: Corporate Governance - A Question of Ethics

Assignment 'A'


Notes: Marks : 15

Analytical questions

1. Board of Directors (BOD) plays a very important role in the process of Corporate Governance.
Discuss.

2. Chairman of the BOD has a pivotal role in the performance of BOD. Do you agree? Support your
answer with reasons and examples.

3. What are the three major committees of the board? Discuss their roles and usefulness?

4. "It is strongly felt that the contribution of non-executive directors is critical in establishing,
maintaining and improving standards of governance in organizations". Comment.

5. "People with different perspectives will have different expectations of the Remuneration
Committee". Do you agree? Support your answer with reasons?

6. What are "Best Boards"? What parameters were set for the evaluation of the "best boards" by
The Business Today- AIMS study of the Best Boards, 1997.


ADL-08: Corporate Governance - A Question of Ethics

Assignment 'B'

Notes: Marks : 15

Analytical Questions
1. Write short notes on the following:
a) Legal aspects and liabilities of directors.
b) The Cadbury Code of best practices.
c) The Greenbury recommendations.

2. The CII desirable code of corporate governance stresses more on the role of Board of Directors
and therefore has only limited value. Comment.

3. Performance evaluation of the BOD seems to be an essential component in improving corporate
governance. Do you agree? Who should do this evaluation and how?

4. "Good Corporate Governance is a question of ethics" Discuss?

5. Discuss the various developments in the field of Corporate Governance in India in recent years?

6. What is a code of good Corporate Governance? Do you consider it can serve any useful purpose
in improving governance? Support your answer with examples.












Copyright 2004. Amity.

ADL-08: Corporate Governance - A Question of Ethics

Assignment 'C'

Notes: Marks : 10

Objective Type Questions

1. Essence of Corporate Governance is:
a) Effective accountability
b) Good management
c) Codes of conduct
d) Transparency

2. Corporate Governance is a system of:
a) Structuring, operating and controlling a company
b) Good management
c) Investing company's finances properly
d) Ensuring maximum profits for the shareholder

3. The concept of Corporate Governance is applicable to:
a) Private sector only
b) Public sector only
c) Government only
d) Both private and public sector

4. The question of Corporate Governance has come up mainly due to:
a) Liberalization of economy
b) Deregulation of industry and business
c) Public demand for better performance
d) All the above

5. As per Raja J Chelliah, weakness in the system of governance in India can only be remedied
through:
a) Stricter laws
b) Movement of moral regeneration
c) Codes of conduct
d) More privatization

6. A Corporate must be socially responsible for:
a) Society expect so
b) It is in the self interest of the corporate
c) It mitigate pressure and government regulations
d) All the above

7. BOD stands for:
a) Board of Director
b) Board of Directors
c) Boards of Decision
d) Directors of the Board

8. Which one of the following is not a category of shareholders in India?
a) Promoters
b) Financial institutions
c) Individual investors
d) Ministries of Government of India







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9. In the private sector who has the firm hold over the companies:
a) Individual investors
b) Promoters
c) Financial institutions
d) Customers

10. In the public sector who selects/ appoints the board members:
a) The PSU concerned
b) Controlling administrative ministry
c) The BOD
d) Financial institutions

11. The head of the BOD is normally called:
a) CEO
b) President
c) Chairman
d) Managing Director

12. For effective corporate governance CEO of the company:
a) Should always head the BOD
b) Should never head the BOD
c) Be allowed to exercise his choice to head the board
d) Should be allowed to appoint the head of the BOD

13. The BOD should consist of:
a) Only executive directors
b) Majority of executive directors
c) Only non-executive director
d) A good mix of executive and non-executive directors

14. Which one of the following is not a parameter of best boards?
a) Accountability of share holders
b) Maximization of profits
c) Independence of decision making
d) Transparency of disclosures

15. Which one of the following is not a duty of the directors?
a) Duty of care and skill in discharge of their function
b) Duty to manage the operational functioning of the company
c) Duty to attend board meetings and devote sufficient time and attention to affairs of the
company
d) Duty not to exceed powers

16. Directors are liable for:
a) Negligence and breach of trust
b) Misfeasance
c) None of the above
d) Both (a) and (b) above

17. The directors appointed by financial institutions on the BOD are called:
a) Non-executive directors
b) Executive directors
c) Nominee directors
d) Institutional directors

18. The Companies Act 1956 came into force on:
a) 1 January 1956
b) 1 January 1957
c) 1 April, 1956
d) 1 April, 1957



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19. The Companies (Amendment) Act, 1996 came into force on:
a) 1 January 1996
b) 1 March 1997
c) 1 April 1996
d) 1 January 1997

20. SEBI stands for:
a) Securities and Exchange Board of India
b) Securities and Enterprises Board of India
c) Selection of Enterprises Board of India
d) Small Exchanges Board of India

21. Cadbury committee report was published in UK in:
a) 1990
b) 1980
c) 1992
d) 1993

22. Cadbury Committee was set up to address the:
a) Problem of good corporate governance
b) Financial aspects of corporate governance
c) Problem of degeneration of values
d) Malpractices in the corporates

23. Cadbury Committee along with its report published a document which was called:
a) Code of conduct for corporates
b) Code of ethical conduct
c) Code of best practices
d) None of the above

24. Which one of the following was not a section of the above document?
a) Role of board of directors
b) Role of the outside non-executive directors
c) Executive directors and their remunerations
d) Evaluation of the BOD

25. In respect of auditing which of the following aspects is not a part of Cadbury Report.
a) Importance of audit
b) Professional objectivity
c) Rotation of auditors
d) Fixed auditors

26. Which one of the following organizations have not contributed to rising awareness about good
corporate governance.
a) EEC
b) OPEC
c) GATT
d) WTO

27. Who prepared the report titled "Desirable Corporate Governance in India -A Code":
a) Government of India
b) FICI
c) CII's Task Force
d) UTI

28. The above report was based on the draft report prepared by:
a) Dr. Goswami
b) FICCI
c) Dr. C V Alexander
d) Mr. Kumaramangalam


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29. The number of recommendations made in above report were:
a) 5
b) 17
c) 13
d) 9

30. Desirable Corporate Governance: A Code (DCGC) recommends that the full board should meet
minimum of following items:
a) Six times a year
b) Once a year
c) Twice a year

31. The National Task Force on Corporate Governance (set up by CII) was headed by:
a) Dr. Goswami
b) Mr. Rahul Bajaj
c) Dr. Omkar Goswami
d) Mr. C K Birla

32. The word "value" is derived from the French/Latin word:
a) Valeo
b) Vaelram
c) Valoir
d) Valer

33. A value is a concept ___________(choose the word most suited to fill the blank).
a) Behavioural
b) Perceptual
c) Management
d) Decision

34. Which one of the following is not a major stakeholder in Corporate Governance?
a) Employees
b) Customers
c) Suppliers
d) Auditors

35. The ethics of Corporate Governance is therefore the determination of what is right, proper
and____________.
a) Good
b) Pleasing
c) Just
d) Practical

36. The word "Ethics" is derived from:
a) The Greek word "Ethos"
b) The French word "Valoir"
c) The Latin word "Valeu"
d) The Latin word "Vallis"

37. The subject of business ethics is multi-leveled. The three levels normally considered are
individual, organization and ____________.
a) Government
b) Society
c) Industry
d) Business






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38. Many managers think of ethics as a question of personal _________________.
a) Judgment
b) Values
c) Thinking
d) Scruples

39. Ethical issues are truly managerial dilemma because they represent a conflict between an
organization economic performance and its:
a) Reputation
b) Growth
c) Social/ethical performance
d) Employees job satisfaction

40. Which one of the following is not a method of analysis of an ethical decision:
a) Economic analysis
b) Legal analysis
c) Ethical analysis
d) Cost-benefit analysis

41. Feedback cycle (Evaluation of performance) in BOD was advocated by:
a) Robert William
b) Zander A
c) Sir Adrian Cadbury
d) Peter F Drucker

42. Which one of the following is not a feature of implementing evaluation process in corporate
governance?
a) Vision
b) Planning
c) Ownership
d) Results

43. Which one of the following is not an essential feature of conducting board's performance
evaluation?
a) The directors themselves
b) The role of the board
c) The working style of the board
d) The composition of the board

44. Who should evaluate the performance of the boards as whole:-
a) Chairman
b) CEO
c) Whole Board
d) The Promoters and the chairman

45. Who should evaluate the performance of the CEO (when he is not the Chairman)?
a) Chairman
b) Whole board
c) Whole board (less CEO)
d) Promoters