11. An organisation's obligation to act to protect and improve society's welfare as well as its own interests is referred to as
organisational social responsibility
organisational social responsiveness
Correct answer: (A) organisational social responsibility
12. An organization’s appropriate tone at the top promoting ethical conduct is an example of:
Correct answer: (C) Ethical behavior.
13. Atmospheric issues include all of the following except:
Correct answer: (D) water quantity
14. Which of the following regarding residual loss is correct?
Bonding costs do not have an effect on residual loss.
Residual loss is incurred by the agent because an agency relationship exists.
Under agency theory, residual loss can be reduced to zero by good governance.
A reduction in residual loss is likely to be the result of an increase in monitoring costs.
Correct answer: (D) A reduction in residual loss is likely to be the result of an increase in monitoring costs.
15. Better access to certain markets, differentiation of products, and the sale of pollution-control technology are ways in which better environmental performance can:
Correct answer: (A) increase revenue
16. Which of the following regarding corporate governance is correct?
Corporate governance can temper growth.
Good corporate governance can result in excessive risk-taking.
Corporate governance often result in prompt and effective decision-making.
The aim of corporate governance is to protect the interests of shareholders and the local economies.
Correct answer: (A) Corporate governance can temper growth.
17. Codes of conduct and codes of ethics
are formal statements that describe what an organization expects of its employees.
become necessary only after a company has been in legal trouble.
are designed for top executives and managers, not regular employees.
rarely become an effective component of the ethics and compliance program.
Correct answer: (A) are formal statements that describe what an organization expects of its employees.
18. Consider the following recommendations: - a minimum of three members; - chaired by an independent director; - a majority of independent directors; - can comprise executive directors. In terms of the ASX Principles, the above requirements relate to the composition of which committees?
The nomination and risk committees.
The audit and remuneration committees.
The remuneration, audit, risk and nomination committees.
The remuneration, risk and nomination committees but not the audit committee.
Correct answer: (D) The remuneration, risk and nomination committees but not the audit committee.
19. External audit of the accounts of a limited company is required
because it is demanded by the company’s bankers
by the Companies Act 2006
at the discretion of the shareholders
to detect fraud
Correct answer: (B) by the Companies Act 2006
20. For referent power to be effective, what must exist between individuals in the relationship?