Download GTU MBA 2017 Winter 4th Sem 2840003 Business Ethics And Corporate Governance Be And Cg Question Paper

Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2017 Winter 4th Sem 2840003 Business Ethics And Corporate Governance Be And Cg Previous Question Paper

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Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER (4) ? EXAMINATION ? WINTER 2017

Subject Code: 2840003 Date: 02/NOV/2017
Subject Name: Business Ethics and Corporate Governance (BE & CG)
Time: 10.30 AM TO 01.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.


Q. 1 Multiple- Choice Questions (Choose the Best answer from the options
given)

6
Q.1 (a) ?Organizations should clarify and make publicly known the roles and
responsibilities of board and management to shareholders?. The statement
talks about the ________ accepted principles of corporate governance.

1.
A. Role and responsibilities of the
Board.
B. Integrity and ethical behavior.
C. Right and equitable treatment of
shareholders.

D. Disclosure and Transparency
2.
The biggest ethical dilemma is to choose?.
A. What is right. B. What is wrong.
C. Between right and wrong. D Between two wrong or two
right.

3.
The ______________ implies that the actions are guided by fairness, equity
and impartiality.

A. Theory of care B. Theory of justice
C. Theory of rights and duties D. Utilitarian Theory


4.
In Kohlberg?s ?Conventional Stage? of development of moral
understanding, the following orientation exists:

A. Instrument & relativity B. Universal Ethical principles
C. Social Contract D. Interpersonal concordance


5.
The _____ Principles were revised and re-issued in 2004 in the wake of the
financial problems in the global corporate world and to develop well
functioning markets.

A. Cadbury Committee B. Combined Code
C. Anglo-American D. OECD


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Page 1 of 4



Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER (4) ? EXAMINATION ? WINTER 2017

Subject Code: 2840003 Date: 02/NOV/2017
Subject Name: Business Ethics and Corporate Governance (BE & CG)
Time: 10.30 AM TO 01.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.


Q. 1 Multiple- Choice Questions (Choose the Best answer from the options
given)

6
Q.1 (a) ?Organizations should clarify and make publicly known the roles and
responsibilities of board and management to shareholders?. The statement
talks about the ________ accepted principles of corporate governance.

1.
A. Role and responsibilities of the
Board.
B. Integrity and ethical behavior.
C. Right and equitable treatment of
shareholders.

D. Disclosure and Transparency
2.
The biggest ethical dilemma is to choose?.
A. What is right. B. What is wrong.
C. Between right and wrong. D Between two wrong or two
right.

3.
The ______________ implies that the actions are guided by fairness, equity
and impartiality.

A. Theory of care B. Theory of justice
C. Theory of rights and duties D. Utilitarian Theory


4.
In Kohlberg?s ?Conventional Stage? of development of moral
understanding, the following orientation exists:

A. Instrument & relativity B. Universal Ethical principles
C. Social Contract D. Interpersonal concordance


5.
The _____ Principles were revised and re-issued in 2004 in the wake of the
financial problems in the global corporate world and to develop well
functioning markets.

A. Cadbury Committee B. Combined Code
C. Anglo-American D. OECD


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Page 2 of 4

6.

The ___________ Committee was appointed in 2002 for revision and
further improvement of Clause 49 for making Indian corporate governance
process world class.

A. Naresh Chandra B. Ganguly
C. Kumar Manglam Birla D. Narayan Murthy


Q.1 (b) Write briefly on: ?Ways to improve governance in the big family-
owned business houses in India?.
04
Q.1 (c) Short note on: ?Ethical dilemma and Methods to resolve it.? 04


Q.2 (a) Define Corporate Governance. Discuss in detail the landmarks of
emergence of Corporate Governance in India with a flow-chart.

07
(b) Discuss how ?Code of Ethics and Business Conduct? of Company
XYZ, can help to ensure ethics in their national as well as global
business practices.
07


OR
(b) Critically discuss who should be responsible for following ethics in
business and what care should be taken in ethical-decision making in
practical business situations.

07

Q.3 (a) What is the purpose of Corporate Governance codes? Discuss in detail
the Cadbury Committee Report of 1992.
07
(b) Discuss how the Sarbanes Oxley Act, 2002, helped to attain the
objective to meaningfully reduce occurrences of fraud and failures in
corporate reporting in the U.S.
07
OR
Q.3 (a) Discuss how the new provisions of the Companies Act 2013 have
targeted to improve the governance of the companies in India.
07
(b) Imagine that you are asked to design a ?Total Ethical Practice? (TEP)
process for good governance for Company ABC; how would you go
about it step-by-step?

07

Q.4 (a) What is the link between business system and its environment.
Compare and contrast the management of ethics in the internal and
external environment of business.
07
(b) Discuss how Corporate Social Responsibility can be used as an
effective strategy for good governance and for ethical conformance.
Discuss what new provisions have helped to improve CSR spending
of corporate in India.
07
OR

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Page 1 of 4



Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER (4) ? EXAMINATION ? WINTER 2017

Subject Code: 2840003 Date: 02/NOV/2017
Subject Name: Business Ethics and Corporate Governance (BE & CG)
Time: 10.30 AM TO 01.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.


Q. 1 Multiple- Choice Questions (Choose the Best answer from the options
given)

6
Q.1 (a) ?Organizations should clarify and make publicly known the roles and
responsibilities of board and management to shareholders?. The statement
talks about the ________ accepted principles of corporate governance.

1.
A. Role and responsibilities of the
Board.
B. Integrity and ethical behavior.
C. Right and equitable treatment of
shareholders.

D. Disclosure and Transparency
2.
The biggest ethical dilemma is to choose?.
A. What is right. B. What is wrong.
C. Between right and wrong. D Between two wrong or two
right.

3.
The ______________ implies that the actions are guided by fairness, equity
and impartiality.

A. Theory of care B. Theory of justice
C. Theory of rights and duties D. Utilitarian Theory


4.
In Kohlberg?s ?Conventional Stage? of development of moral
understanding, the following orientation exists:

A. Instrument & relativity B. Universal Ethical principles
C. Social Contract D. Interpersonal concordance


5.
The _____ Principles were revised and re-issued in 2004 in the wake of the
financial problems in the global corporate world and to develop well
functioning markets.

A. Cadbury Committee B. Combined Code
C. Anglo-American D. OECD


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Page 2 of 4

6.

The ___________ Committee was appointed in 2002 for revision and
further improvement of Clause 49 for making Indian corporate governance
process world class.

A. Naresh Chandra B. Ganguly
C. Kumar Manglam Birla D. Narayan Murthy


Q.1 (b) Write briefly on: ?Ways to improve governance in the big family-
owned business houses in India?.
04
Q.1 (c) Short note on: ?Ethical dilemma and Methods to resolve it.? 04


Q.2 (a) Define Corporate Governance. Discuss in detail the landmarks of
emergence of Corporate Governance in India with a flow-chart.

07
(b) Discuss how ?Code of Ethics and Business Conduct? of Company
XYZ, can help to ensure ethics in their national as well as global
business practices.
07


OR
(b) Critically discuss who should be responsible for following ethics in
business and what care should be taken in ethical-decision making in
practical business situations.

07

Q.3 (a) What is the purpose of Corporate Governance codes? Discuss in detail
the Cadbury Committee Report of 1992.
07
(b) Discuss how the Sarbanes Oxley Act, 2002, helped to attain the
objective to meaningfully reduce occurrences of fraud and failures in
corporate reporting in the U.S.
07
OR
Q.3 (a) Discuss how the new provisions of the Companies Act 2013 have
targeted to improve the governance of the companies in India.
07
(b) Imagine that you are asked to design a ?Total Ethical Practice? (TEP)
process for good governance for Company ABC; how would you go
about it step-by-step?

07

Q.4 (a) What is the link between business system and its environment.
Compare and contrast the management of ethics in the internal and
external environment of business.
07
(b) Discuss how Corporate Social Responsibility can be used as an
effective strategy for good governance and for ethical conformance.
Discuss what new provisions have helped to improve CSR spending
of corporate in India.
07
OR

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Page 3 of 4

Q.4 (a) Write detailed note on the following:
1. SEBI as a market regulator.
2. Role of Independent directors to improve governance of Listed
Companies.

04
03
(b) Critically discuss the role and usefulness of the ?Utilitarian Theory? in
assuring ethics and morality in the society with an example of the
Land Acquisition or Slum Redevelopment Projects or any other
example of your choice.
07

Q.5 Case Study (Q.5 A OR Q.5 B)
Q. 5 A. CASE: THE KINGFISHER STORY: Once upon a time
there was a king
He owned India?s biggest liquor company, a private jet, an Airbus and
many other riches. Then in 2005, Vijay Mallya launched Kingfisher.
Even before Kingfisher could be launched, the aviation industry had
started bleeding. Crude oil prices were high, with fuel costs often
making up half the operating costs of airlines. But Mallya announced
his would be a premium, world-class airline. At its peak, Kingfisher
Airlines was the second largest airline in India in terms of the number
of passengers it carried.
As crude prices soared towards $140 a barrel, the global aviation
industry too was facing a crisis. For airlines in India, the hit was much
harsher with taxes and levies topping oil prices. On top of that, the
global financial crisis struck, growth started sliding and the aviation
script went haywire. By 2009-10, Kingfisher Airlines had accumulated
a debt of over Rs 7,000 crore.
That was also the year Kingfisher Airlines turned into a non-
performing asset or a bad loan for banks. In November 2010, banks
for the first time restructured Kingfisher?s debt. In 2012, Kingfisher
Airlines was grounded, leaving its employees with unpaid salaries.
The company had allegedly not deposited its employees? provident
fund to the government and had run losses in excess of Rs 4,000 crore
in 2012-13. Its accumulated losses ran into Rs 16,023 crore, while its
net worth fell to a negative Rs 12,919 crore at the end of March 2013.
As trouble mounted, Kingfisher Airlines was chased by the service tax
department over non-payment of service tax of over Rs 115 crore. The
department seized eight aircraft and helicopters of the company,
including Mallya?s prized Airbus A319, which it now plans to auction.
In February 2013, the airline?s flying permits were withdrawn.
United Bank of India was the first lender to declare Kingfisher and
Mallya a ?wilful defaulter? in May 2014. The same year, the SBI too
issued a notice to tag Kingfisher Airlines, Mallya and United
Breweries Holdings as ?wilful defaulters?. The SBI notice of August
19 has alleged diversion of funds by Kingfisher Airlines to UB Group
of companies and other firms.
(Source: http://indianexpress.com/article/india/india-news-
14




































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Page 1 of 4



Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER (4) ? EXAMINATION ? WINTER 2017

Subject Code: 2840003 Date: 02/NOV/2017
Subject Name: Business Ethics and Corporate Governance (BE & CG)
Time: 10.30 AM TO 01.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.


Q. 1 Multiple- Choice Questions (Choose the Best answer from the options
given)

6
Q.1 (a) ?Organizations should clarify and make publicly known the roles and
responsibilities of board and management to shareholders?. The statement
talks about the ________ accepted principles of corporate governance.

1.
A. Role and responsibilities of the
Board.
B. Integrity and ethical behavior.
C. Right and equitable treatment of
shareholders.

D. Disclosure and Transparency
2.
The biggest ethical dilemma is to choose?.
A. What is right. B. What is wrong.
C. Between right and wrong. D Between two wrong or two
right.

3.
The ______________ implies that the actions are guided by fairness, equity
and impartiality.

A. Theory of care B. Theory of justice
C. Theory of rights and duties D. Utilitarian Theory


4.
In Kohlberg?s ?Conventional Stage? of development of moral
understanding, the following orientation exists:

A. Instrument & relativity B. Universal Ethical principles
C. Social Contract D. Interpersonal concordance


5.
The _____ Principles were revised and re-issued in 2004 in the wake of the
financial problems in the global corporate world and to develop well
functioning markets.

A. Cadbury Committee B. Combined Code
C. Anglo-American D. OECD


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Page 2 of 4

6.

The ___________ Committee was appointed in 2002 for revision and
further improvement of Clause 49 for making Indian corporate governance
process world class.

A. Naresh Chandra B. Ganguly
C. Kumar Manglam Birla D. Narayan Murthy


Q.1 (b) Write briefly on: ?Ways to improve governance in the big family-
owned business houses in India?.
04
Q.1 (c) Short note on: ?Ethical dilemma and Methods to resolve it.? 04


Q.2 (a) Define Corporate Governance. Discuss in detail the landmarks of
emergence of Corporate Governance in India with a flow-chart.

07
(b) Discuss how ?Code of Ethics and Business Conduct? of Company
XYZ, can help to ensure ethics in their national as well as global
business practices.
07


OR
(b) Critically discuss who should be responsible for following ethics in
business and what care should be taken in ethical-decision making in
practical business situations.

07

Q.3 (a) What is the purpose of Corporate Governance codes? Discuss in detail
the Cadbury Committee Report of 1992.
07
(b) Discuss how the Sarbanes Oxley Act, 2002, helped to attain the
objective to meaningfully reduce occurrences of fraud and failures in
corporate reporting in the U.S.
07
OR
Q.3 (a) Discuss how the new provisions of the Companies Act 2013 have
targeted to improve the governance of the companies in India.
07
(b) Imagine that you are asked to design a ?Total Ethical Practice? (TEP)
process for good governance for Company ABC; how would you go
about it step-by-step?

07

Q.4 (a) What is the link between business system and its environment.
Compare and contrast the management of ethics in the internal and
external environment of business.
07
(b) Discuss how Corporate Social Responsibility can be used as an
effective strategy for good governance and for ethical conformance.
Discuss what new provisions have helped to improve CSR spending
of corporate in India.
07
OR

www.FirstRanker.com www.FirstRanker.com
www.FirstRanker.com
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Page 3 of 4

Q.4 (a) Write detailed note on the following:
1. SEBI as a market regulator.
2. Role of Independent directors to improve governance of Listed
Companies.

04
03
(b) Critically discuss the role and usefulness of the ?Utilitarian Theory? in
assuring ethics and morality in the society with an example of the
Land Acquisition or Slum Redevelopment Projects or any other
example of your choice.
07

Q.5 Case Study (Q.5 A OR Q.5 B)
Q. 5 A. CASE: THE KINGFISHER STORY: Once upon a time
there was a king
He owned India?s biggest liquor company, a private jet, an Airbus and
many other riches. Then in 2005, Vijay Mallya launched Kingfisher.
Even before Kingfisher could be launched, the aviation industry had
started bleeding. Crude oil prices were high, with fuel costs often
making up half the operating costs of airlines. But Mallya announced
his would be a premium, world-class airline. At its peak, Kingfisher
Airlines was the second largest airline in India in terms of the number
of passengers it carried.
As crude prices soared towards $140 a barrel, the global aviation
industry too was facing a crisis. For airlines in India, the hit was much
harsher with taxes and levies topping oil prices. On top of that, the
global financial crisis struck, growth started sliding and the aviation
script went haywire. By 2009-10, Kingfisher Airlines had accumulated
a debt of over Rs 7,000 crore.
That was also the year Kingfisher Airlines turned into a non-
performing asset or a bad loan for banks. In November 2010, banks
for the first time restructured Kingfisher?s debt. In 2012, Kingfisher
Airlines was grounded, leaving its employees with unpaid salaries.
The company had allegedly not deposited its employees? provident
fund to the government and had run losses in excess of Rs 4,000 crore
in 2012-13. Its accumulated losses ran into Rs 16,023 crore, while its
net worth fell to a negative Rs 12,919 crore at the end of March 2013.
As trouble mounted, Kingfisher Airlines was chased by the service tax
department over non-payment of service tax of over Rs 115 crore. The
department seized eight aircraft and helicopters of the company,
including Mallya?s prized Airbus A319, which it now plans to auction.
In February 2013, the airline?s flying permits were withdrawn.
United Bank of India was the first lender to declare Kingfisher and
Mallya a ?wilful defaulter? in May 2014. The same year, the SBI too
issued a notice to tag Kingfisher Airlines, Mallya and United
Breweries Holdings as ?wilful defaulters?. The SBI notice of August
19 has alleged diversion of funds by Kingfisher Airlines to UB Group
of companies and other firms.
(Source: http://indianexpress.com/article/india/india-news-
14




































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Page 4 of 4

india/sunday-story-once-upon-a-time-there-was-a-king-vijay-mallya/)
Answer the questions below:
a. Discuss the Kingfisher case in your own words.
b. The case reveals certain systemic failures as well as some
failures in policy regulations. What are they?
c. How do you think these failures could have been removed or
minimized?



4

5


5
OR
Q.5 Case Study
Q. 5 B. CASE: XYZ Ltd. ? DIVERGENCE BETWEEN
PRECEPTS AND PRACTICES
XYZ Ltd. is a global, pharma and bio-technology company that has
grown up by leveraging two powerful trends- globalization and bio-
technology. It is a listed pharma company in India. Various
acquisitions have strengthened XYZ Ltd.?s position in the high-
potential markets of the UK, Germany etc. Although the company says
in its Code of Ethics that it will follow ethical practices, yet the
following unethical practices are attributed to the company:
Non-compliance of US Food and Drug Administration (FDA)
regulations in its manufacturing facility; Victimization of employees
by dismissing more than 70 medical representatives because of
declining sales and unachievable sales targets. Low wages as well as
poor working conditions prevailed in the organization. Unfair trade
and marketing practices were indulged by the management.
Companies like XYZ Ltd. reveals the divergence that exists between
precept and practices. Unethical companies tend to use ?Code of
ethics? as a mask to show a humane face to the outside world.
(Source: ?Business Ethics-An Indian Perspective? by A C Fernando)
Answer the questions mentioned below:
a. Discuss the business philosophy of XYZ Ltd.
b. Enlist the unethical practices done by XYZ Ltd.
c. Imagine that XYZ Ltd., was issued a notice by the Indian regulator
for a change of the present CEO in order to revive the company from
unethical practices. Imagine that you are the new CEO. What
strategies would you implement to bring back the rapport of the
company.

















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This post was last modified on 19 February 2020