Questions of the TOEFL iBT Reading Comprehension Practice Test 023

Question 1. According to the paragraph, what is the purpose of corporate governance?
A) To maximize profits for shareholders
B) To minimize the risk of fraud
C) To promote financial instability
D) To ensure long-term success and protect the interests of stakeholders

Question 2. According to the paragraph, which of the following is NOT true about corporate governance?
A) It helps to promote financial stability and accountability
B) It is critical for the long-term success of a company
C) It encompasses a wide range of policies and procedures
D) It focuses solely on maximizing profits for shareholders

Question 3. The author mentions all of the following components of corporate governance except:
A) Board of directors
B) Management
C) External control systems
D) Shareholders

Question 4. Which of the following can be inferred from the paragraph about corporate governance?
A) Corporate governance only involves policies and procedures related to financial stability.
B) Effective corporate governance can promote ethical and responsible behavior.
C) Internal control systems are responsible for overseeing the management of the company.
D) The rise of new technologies has reduced the importance of corporate governance.

Question 5. The author of the paragraph implies that corporate governance __________.
A) is only important for protecting the interests of shareholders
B) has not changed significantly in recent years
C) can play a critical role in shaping the success of companies
D) is not necessary for promoting financial stability and accountability

Question 6. Why does the author mention the Enron and WorldCom scandals?
A) To show that corporate governance is not important in preventing fraud and unethical behavior.
B) To argue that companies should not be regulated or governed by any external body.
C) To demonstrate the need for new regulations and guidelines related to corporate governance.
D) To show that corporate governance has not evolved significantly in recent years.

Question 7. The word "minimize" in the passage is closest in meaning to __________.
A) increase
B) reduce
C) promote
D) encourage

Question 8. The phrase "day-to-day operations" in the passage is closest in meaning to __________.
A) long-term planning
B) short-term profits
C) routine activities
D) crisis management

Question 9. In stating that "Corporate governance is critical for ensuring the long-term success of a company", the author means that __________.
A) companies can only achieve short-term success without good corporate governance
B) the success of a company is not dependent on good corporate governance
C) good corporate governance can contribute to the long-term success of a company
D) the long-term success of a company is not important for stakeholders