RSA Module 3 Test

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Question 1 of 22

1. Question
SECTION 10.0 – BOARD EFFECTIVENESS.

10.1 Is the following statement true or not?

Governing body effectiveness refers to the quality of performance of the governing body members, not only in their meetings, but also in their consistent attention to and execution of their duties and responsibilities throughout their term of office.
- Yes
- No
Question 2 of 22

2. Question
10.2 Which of the following statements is incorrect?
- Governing body effectiveness begins with the selection and appointment of people who have a strong motivation to truly serve the aims and objectives of the organisation to which they have been nominated.
- Spurious motives such as for prestige, visibility or networking opportunity will not be sufficient to maintain a high level of motivation and attention to their duties.
- The inducement to persistently maintain a high level of diligence can only come from the prospect of financial reward.
- The King Report recommends that there should be no element of tokenism or cronyism in governing body appointments.
- The selection of governing body members should be planned, agreed on and well managed by the governing body.
Question 3 of 22

3. Question
10. 3 Which of the following guidelines for assisting governing body effectiveness is true?
- Governing body members should attend all meetings.
- Abstain from political behaviour.
- Strive to always be as fully informed on the business and its demands.
- To act with utmost integrity and sincerity towards fellow governing body members, always respecting their perspectives, personality traits and values.
- To respect the value of democratic but responsible contribution to the effectiveness of group decision-making and the role of the Chair as the guardian of the process.
- All of the above.
- None of the above.
Question 4 of 22

4. Question
10.4 Is the following statement true?

Governing body effectiveness refers to the quality of performance of the Governing body and members, not only in their meetings, but in their consistent attention to and execution of duties and responsibilities throughout their term of office
- Yes
- No
Question 5 of 22

5. Question
10.5 Which of the following guidelines is incorrect?

Governing body members should:
- Avoid personalising debates and recognise that organisation matters, problems and issues presented to the governing body are business realities.
- Place a high value on trust as without it constructive engagement can become futile.
- Respect the final decisions of the governing body and avoid ‘holding out’ and unnecessarily prolonging deliberations because of a reluctance to yield to a different view.
- Act in opposition to a majority decision which is lawful with which he or she does not agree.
- Study the agenda for forthcoming meetings carefully and read all governing body papers before meetings.
Question 6 of 22

6. Question
10.6 Is the following statement true?

Governing bodies should conduct regular, objective and honest self-appraisals of the quality of ideas, solutions, reports and plans that are produced through their collective efforts. Such appraisals should be limited to their own evaluation but can be extended to an assessment by the members of the organisation where relevant.
- Yes
- No
Question 7 of 22

7. Question
10.7 Which of the following statements is incorrect?

Areas for assessment should include but not be limited to:
- Level of governing body meeting attendance by individual governing body members.
- Degree of overall participation.
- Quality of plans and budgets approved.
- Accomplishment of objectives.
- Profits made for shareholders.
- Depth of business impact made.
- Level of transparency maintained with stakeholders.
- Effectiveness of financial controls in place.
Question 8 of 22

8. Question
10.8 Is the following statement true or not?

Creative thinking, decision-making and planning are higher-level cognitive skills that require an emotional-free atmosphere that is conducive to the reaching of the best possible outcomes.
- Yes
- No
Question 9 of 22

9. Question
SECTION 11.0 – MANAGERS AND COMMITTEES

11.1 Which of the following statements is correct?
- The governing body is usually required to appoint managers to operate the business on a day-to-day basis.
- Managers appointed should be conferred with sufficient authority to enable them to perform the duties and responsibilities assigned to them.
- The governing body must ensure that service contracts for managers are in place.
- The governing body should not divulge organisation plans or budgets to Managers.
- All except (d).
- All except (a) and (d).
Question 10 of 22

10. Question
11.2 Is the following statement true?

Managers report to the General Manager/Managing Director/Chief Executive Officer, therefore governing body members are not required to provide Managers with any specialist advice, motivation and encouragement.
- Yes
- No
Question 11 of 22

11. Question
11.3 Which of the following responsibilities do not apply to managers?
- To act within their delegated powers and authority.
- To manage the business with the skill, diligence and care expected of persons in their positions.
- Manage in the best interest of the organisation.
- Ensure that auditors are appointed for the organisation.
- Comply with and ensure compliance of all employees with the organisations code of good conduct.
- Comply with the laws governing labour relations and conditions of employment.
- Protect employees against physical, mental or emotional harassment.
- To take adequate steps to ensure the safekeeping and protection of the organisations assets.
Question 12 of 22

12. Question
11.4 Is the following statement true?

Regardless of the organisations size, level of turnover or form of legal entity, it is required of the governing body to appoint an internal audit committee in terms of the Public Finance Management Act.
- Yes
- No
Question 13 of 22

13. Question
11.5 Which of the following statements is incorrect.
- Committees can be appointed by the governing body to increase the effectiveness of the governing body.
- Many committees appointed by the governing bodies are of an adhoc nature to handle specific assignments.
- Typical tasks to be executed by committees would be to attend to short-term projects, investigate and recommend policies, complete feasibility studies and follow up on proposals brought to Board meetings.
- Committees appointed to attend to short-term projects are known as standing committees.
- Such committees do not have executive powers.
Question 14 of 22

14. Question
11.6 Which of the following statements is incorrect?
- A Non-Profit organisation is not bound to pay governing body members for their services as governing body members.
- Governing body members may be paid if the founding document provides for such payment.
- A remuneration committee is one of the standing committees recommended by the King report.
- The main objective of such a remuneration committee is to demonstrate to stakeholders that remuneration, especially of senior people, is set objectively and fairly.
- The remuneration committee should always consist of senior executives of the organisation.
Question 15 of 22

15. Question
11.7 Is the following statement true?

If an organisation appoints an internal audit committee it does not have to appoint external auditors to report on the financial results of the business.
- Yes
- No
Question 16 of 22

16. Question
11.8 Which of the following statements is incorrect?

Whether use is made of an internal audit committee or not, the following arrangements should be made with the external auditors:
- The scope and extent of the external audit must be agreed beforehand.
- The timing and duration of the audit must be discussed.
- To decide which of the annual financial reports to submit to the AGM.
- To agree on the fee for the services to be provided.
Question 17 of 22

17. Question
SECTION 12.0 EMPLOYEES

12.1 Is the following statement true?

It is the responsibility of governing body members to ensure that the organisation complies with all the statutory regulations concerning the recruitment, selection, appointment and conditions of employment of people.
- Yes
- No
Question 18 of 22

18. Question
12.2 Which of the following Acts apply to nonprofit organisations with employees?
- Basic Conditions of Employment Act, 75 of 1997
- The Labour Relations Act of 1995
- Occupational Health and Safety Act, 85 of 1993
- Protected Disclosures Act, 26 of 2000
- All of the above.
Question 19 of 22

19. Question
12.3 Which of the following statements is incorrect?
- Individuals cannot sign away their fundamental human rights.
- Employment contracts that deny employees a basic human right cannot be enforced.
- Employees have the right to freedom of expression.
- Employees have the right to freedom of trade, occupation and profession.
- Employers have the right to insist that employees perform, whether their conditions of employment are fair or not.
Question 20 of 22

20. Question
12.4 Which of the following statements is correct?

An organisation can reasonably expect the following from its employees:
- To avoid waste of the organisation’s resources, including time.
- Respect the confidentiality of sensitive business information.
- Use their capabilities and develop their potential as much as possible, particularly for training received.
- To act honestly at all times.
- Not abuse a strong collective bargaining position or engage in unlawful industrial action.
- All of the above.
Question 21 of 22

21. Question
12.5 Is the following statement true?

A high standard of ethical conduct and expected values cannot be unreasonably demanded from employees and remains largely a factor of the degree of mutual respect for human dignity and organisational objectives that exists within the organisation.
- Yes
- No
Question 22 of 22

22. Question
12.6 Which of the following statements is correct?
- Employees have a basic human right to be treated with dignity.
- Employees have a basic human right to choose whether they should perform the work for which they were engaged.
- Employers cannot release an employee for deciding not to fulfill their obligations.
- The employer determines the working relationship between the employer and employee.
- All of the above are correct.
- Only (c) and (d) are incorrect.

RSA Module 3 Test

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1. Question

SECTION 10.0 – BOARD EFFECTIVENESS.

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question

8. Question

9. Question

SECTION 11.0 – MANAGERS AND COMMITTEES

10. Question

11. Question

12. Question

13. Question

14. Question

15. Question

16. Question

17. Question

SECTION 12.0 EMPLOYEES

18. Question

19. Question

20. Question

21. Question

22. Question