Test Prep / IB Practice Test - 11/21/2025

IB Practice Test - 11/21/2025

Practice test covering 10 questions in 20 minutes. All questions are multiple-choice.

The IB Practice Test - 11/21/2025 is designed to help students practice with exam-style questions and improve their test-taking skills. This practice test covers 10 questions in 20 minutes, allowing learners to experience the format and timing of real assessments while identifying areas that need further review.

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1

What is the primary role of the company secretary in corporate governance?

A:Acting as an impartial adviser on governance to the whole board
B:Managing the company’s financial accounts
C:Setting company strategy
D:Making executive decisions
2

According to the UK Corporate Governance Code, what percentage of the board, excluding the chair, should be independent non-executive directors?

A:At least 50%
B:One-third
C:At least 25%
D:100%
3

What is the main difference between the agency theory and stakeholder theory in corporate governance?

A:Agency theory focuses on shareholders and stakeholder theory considers all stakeholders
B:Agency theory emphasizes social responsibility and stakeholder theory emphasizes profits
C:Agency theory supports long-termism and stakeholder theory supports short-termism
D:Agency theory is based on management theories and stakeholder theory on economic theories
4

Which corporate governance approach requires directors to balance conflicting stakeholder interests in the best interests of the company?

A:Enlightened shareholder value approach
B:Inclusive stakeholder approach
C:Shareholder value approach
D:Stakeholder approach
5

According to corporate governance principles, which of the following is NOT one of the four widely agreed underlying principles?

A:Fairness
B:Accountability
C:Profit Maximization
D:Transparency
6

In the UK, which type of company is legally required to appoint a company secretary?

A:Public companies
B:Private companies
C:Both public and private companies
D:Limited liability partnerships
7

Which of the following is NOT typically a role of a company’s audit committee?

A:Monitoring the integrity of financial statements
B:Overseeing internal controls and risk management systems
C:Setting the company's executive remuneration
D:Reviewing the effectiveness of internal and external audits
8

What is the purpose of a company’s strategic report under the UK Companies Act 2006?

A:To provide shareholders with information on how the directors have fulfilled their duty to promote company success
B:To present audited financial statements
C:To appoint directors and auditors
D:To finalize dividend payments
9

Which of the following best describes the main function of integrated reporting?

A:Combining financial and non-financial information to report on value creation over time
B:Separating financial statements from ethical reports
C:Reporting solely on environmental impact
D:Excluding financial performance from sustainability reports
10

According to the 2018 UK Corporate Governance Code, which of the following must a board assess and monitor?

A:Corporate culture
B:Employee salary ranges
C:Foreign operations
D:Shareholder composition