Download Corporate Governance Exam Past Paper
Section A – Multiple Choice (10 marks)
-
Which of the following is a primary responsibility of the board of directors?
A. Day-to-day operational management
B. Setting strategic direction
C. Approving employee leave
D. Managing payroll -
The “agency problem” arises mainly due to:
A. Strong ethical policies
B. Conflicts between shareholders and managers
C. External audits
D. Market competition -
A key purpose of corporate governance codes is to:
A. Replace national laws
B. Guide companies in achieving transparency and accountability
C. Increase profits immediately
D. Eliminate shareholder voting -
The concept of “comply or explain” is associated with:
A. Risk management frameworks
B. Corporate governance reporting
C. International taxation
D. Financial forecasting -
A whistleblowing policy primarily supports:
A. Dividend distribution
B. Ethical conduct and internal reporting
C. Market expansion
D. CEO recruitment -
Corporate-Governance-Exam-Past-Paper-Mpya-News
Section B – Short Answer Questions (20 marks)
1. Define “corporate governance” and explain why it is important for organisational sustainability.
2. Describe two roles of non-executive directors (NEDs) in the governance structure.
3. What is stakeholder theory, and how does it differ from shareholder theory?
4. Explain what is meant by “board diversity” and discuss one potential benefit.
Section C – Essay Questions (Choose ONE) (20 marks)
1. Examine the key principles of good corporate governance (such as accountability, transparency, fairness, responsibility) and evaluate how they reduce organisational risk.
OR
2. Assess the role of the board of directors in strategic decision-making and discuss the challenges boards face when balancing stakeholder interests.
Section D – Case Study (30 marks)
Case:
ABC Holdings has recently faced criticism for weak internal controls, poor financial disclosure, and the dominance of the CEO, who also serves as the Chair of the Board. A whistleblower has reported concerns about unethical practices, but no formal whistleblowing procedures exist. Shareholder confidence is declining.
Questions:
a. Identify three governance weaknesses in ABC Holdings.
b. Recommend governance reforms based on recognised corporate governance principles.
c. Explain how separating the roles of CEO and Chair can strengthen board effectiveness.
d. Discuss how establishing a whistleblowing procedure could improve organisational ethics.
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Last updated on: November 16, 2025
New information gained / new value takehome
- Download Corporate Governance Exam Past Paper Section A – Multiple Choice (10 marks) Which of the following is a primary responsibility of the board of directors?
- Market competition A key purpose of corporate governance codes is to:A.
- CEO recruitment Corporate-Governance-Exam-Past-Paper-Mpya-News Section B – Short Answer Questions (20 marks) 1.
- Define “corporate governance” and explain why it is important for organisational sustainability.
- Explain what is meant by “board diversity” and discuss one potential benefit.
- Examine the key principles of good corporate governance (such as accountability, transparency, fairness, responsibility) and evaluate how they reduce organisational risk.
- Recommend governance reforms based on recognised corporate governance principles.
This content was developed using AI as part of our research process. To ensure absolute accuracy, all information has been rigorously fact-checked and validated by our human editor, Wycklliff Muthinja.
