1. Which sequence correctly identifies the body responsible for (i) monitoring compliance with the Corporate Governance Code by listed companies, (ii) registering companies and receiving statutory returns, and (iii) setting fit-and-proper criteria for bank directors?

A) FRC, RJSC, BSEC
B) RJSC, BSEC, Bangladesh Bank
C) BSEC, Bangladesh Bank, RJSC
D) BSEC, RJSC, Bangladesh Bank

Correct: D complex Regulators

BSEC regulates the capital market and issues and monitors the Code. The Registrar of Joint Stock Companies and Firms administers company registration under the Companies Act 1994. Bangladesh Bank sets prudential and fit-and-proper rules for banks. The other sequences swap one or more bodies; the FRC oversees financial reporting and audit.

2. Which conduct is prohibited by the Competition Act 2012?

A) Two rival cement producers informally agree, with no written contract, to divide regional markets
B) A retailer advertises lower prices than its rivals
C) A supermarket negotiates volume discounts from suppliers
D) A manufacturer becomes market leader because customers prefer its better, cheaper product

Correct: A difficult Competition Act 2012

Anti-competitive agreements are prohibited whether formal or informal, written or not, if they prevent, restrict or distort competition; market sharing is a classic example. Winning share through a better product, competing on price and negotiating volume discounts are normal competition. If you chose any of these you treated success or hard bargaining as an offence.

3. Under the principle reflected in the Bangladesh Labour Act 2008 and Labour Rules 2015, an employer must:

A) eliminate every workplace risk regardless of the cost or practicability involved
B) act only after an accident has been reported to the factory inspectors
C) take practical, reasonable measures to protect workers' health and safety (ALARP is not commonly used as a term)
D) discharge the duty by obtaining workers' signed acceptance of the risk involved

Correct: C difficult Workplace risk regulation

The law requires reasonable precautions to reduce workplace risk. It does not require elimination of all risk at any cost, does not wait for an accident, and does not let the employer contract out of safety duties. If you chose any other option you treated the duty as absolute, reactive or waivable.

4. Which TWO are roles of the Bangladesh Securities and Exchange Commission (BSEC)? (Select TWO.)

Multiple response
A) Registering private companies
B) Overseeing the audits of public interest entities
C) Issuing the Corporate Governance Code
D) Monitoring listing and disclosure requirements
E) Setting prudential rules for banks

Correct: C, D difficult Role of regulators

BSEC issues the Code and monitors listing and disclosure requirements for publicly traded companies. Registration is RJSC's role, oversight of PIE audits is the FRC's, and prudential banking rules are Bangladesh Bank's.

5. Which TWO are likely consequences of increased regulation for businesses? (Select TWO.)

Multiple response
A) Higher compliance costs, particularly for small firms
B) Lower barriers to entry
C) Greater investor confidence from consistent disclosure
D) Reduced need for internal controls
E) Faster decision-making

Correct: A, C difficult Effects of regulation

Regulation adds cost and process but improves transparency and confidence. It tends to raise barriers to entry and the need for controls, and it slows rather than speeds decisions. If you chose B, D or E you assumed the opposite effect.

6. Consider regulatory bodies. For each statement, select Yes if it is correct and No if it is not.

Yes/No grid

1. The FRC's oversight covers all private company audits regardless of size.   No

2. The FRC was established under the Financial Reporting Act 2015.   Yes

3. The Registrar of Joint Stock Companies and Firms administers company registration under the Companies Act 1994.   Yes

4. Compliance with the Corporate Governance Code is monitored by the Registrar.   No

Correct: N, Y, Y, N difficult FRC and RJSC

(1) No: the FRC focuses on public interest entities. (2) Yes. (3) Yes. (4) No: BSEC monitors Code compliance.

7. Consider competition regulation. For each statement, select Yes if it is correct and No if it is not.

Yes/No grid

1. Informal, unwritten agreements can be anti-competitive.   Yes

2. Having a large market share is itself an offence.   No

3. Cartels may involve collusion on prices, discounts or production.   Yes

Correct: Y, N, Y difficult Competition law

(1) Yes. (2) No: abuse of a dominant position is prohibited, not size itself. (3) Yes.

8. A Gazipur laundry must meet a new effluent rule. It meets the limit exactly by adding the compliance cost to its customers' prices, without changing its processes or products. Which type of response is this?

A) Mere compliance
B) Entrenchment
C) Full compliance
D) Innovation under the Porter hypothesis

Correct: A difficult Business responses to regulation

Mere compliance meets the required outcome by passing on the cost to customers. Entrenchment is continuing a practice with no response. Full compliance changes behaviour, products and processes. The Porter hypothesis predicts that strict regulation can trigger innovation that offsets costs.

9. A new law requires all garment factories to install effluent treatment plants within 12 months, raising the costs of an existing exporter. Which risk does this illustrate?

A) Liquidity risk
B) Regulatory risk
C) Credit risk
D) Technology risk

Correct: B difficult Regulatory risk

Regulatory risk is the risk that changes in regulation may harm a business. Credit risk is the risk of customer default, liquidity risk is difficulty meeting obligations as they fall due, and technology risk concerns changes in production or delivery technology.

10. A dominant supplier in a Bangladeshi regional market sells below cost for several months to drive a new entrant out. Under the Competition Act 2012, how should this be viewed?

A) As a breach of merger control, because it changes the structure of the market
B) As a possible abuse of a dominant position, since predatory pricing is a listed example
C) As an anti-competitive agreement, because it involves two or more parties fixing prices
D) As lawful price competition, because lower prices always benefit consumers

Correct: B complex Abuse of a dominant position

A dominant position means being able to behave independently of competitive pressures. The Act gives predatory pricing as an example of abuse. A single firm's conduct is not an agreement, and no merger is involved.

11. Which TWO responses to a stricter environmental regulation are consistent with the Porter hypothesis? (Select TWO.)

Multiple response
A) Passing the full compliance cost to customers in higher prices
B) Ignoring the regulation and continuing the existing practice
C) Redesigning the dyeing process to cut water use, which both meets the limit and reduces costs
D) Closing the factory to avoid compliance
E) Adopting cleaner technology and finding that resulting savings offset compliance costs

Correct: C, E difficult Porter hypothesis

The Porter hypothesis holds that strict regulation triggers innovation whose cost savings offset compliance and innovation costs, improving competitiveness. Passing on costs, ignoring or closing are other responses.

12. Which TWO are examples of agreements that fall within the prohibition of anti-competitive agreements? (Select TWO.)

Multiple response
A) Agreeing with rivals to share customers by territory
B) Unilaterally cutting a price after a rival's price cut
C) Offering the same volume discount to all customers
D) Signing standard sales contracts with customers
E) Agreeing with rivals on minimum selling prices

Correct: A, E difficult Anti-competitive agreements

Agreements to fix prices or to share markets or sources of supply are prohibited when they have an appreciable effect on competition. Unilateral price changes, uniform discounts and normal sales contracts are not agreements between competitors.

13. Consider external regulation. For each statement, select Yes if it is correct and No if it is not.

Yes/No grid

1. The Financial Reporting Council was established under the Companies Act 1994.   No

2. BSEC issues the Corporate Governance Code and monitors listing and disclosure requirements.   Yes

3. Regulatory compliance functions help staff understand and follow relevant laws.   Yes

4. Regulatory risk is the risk that a business's customers fail to pay.   No

5. The Bangladesh Environment Conservation Act 1995 is an example of an environmental law.   Yes

Correct: N, Y, Y, N, Y difficult Regulation in Bangladesh

(1) No: the FRC was established under the Financial Reporting Act 2015. (2) Yes. (3) Yes. (4) No: that is credit risk. (5) Yes.

14. Consider ways in which governments encourage business to reduce emissions. For each statement, select Yes if it is correct and No if it is not.

Yes/No grid

1. Taxes on polluting activities encourage a switch to cleaner alternatives.   Yes

2. Grants can encourage investment in systems that reduce carbon emissions.   Yes

3. Compliance audits are carried out only by the company's own management to set salaries.   No

4. The Climate Change Trust Act 2010 is an example of Bangladesh law addressing climate change.   Yes

Correct: Y, Y, N, Y difficult Government environmental measures

(1) Yes. (2) Yes. (3) No: governments may require audits to confirm compliance. (4) Yes.

15. Four cement producers in Bangladesh meet privately and agree to hold prices at a common level and to share regions between them. How is this conduct treated under the Competition Act 2012?

A) As lawful co-operation, because the agreement was not in writing
B) As a prohibited anti-competitive agreement or cartel, even if informal and unwritten
C) As lawful co-operation, because each firm remains a separate company
D) As a matter solely for the Companies Act and not competition law

Correct: B complex Cartels

Both formal and informal agreements that prevent, restrict or distort competition are prohibited. Price fixing and market sharing are typical cartel conduct.

16. In which industry is collusive behaviour most likely, based on the conditions that favour cartels?

A) An industry with few competitors, near-identical products and established communication between rivals
B) An industry with hundreds of small firms and highly differentiated products
C) An industry with unique products and no excess capacity
D) An industry with rapid new entry and little contact between rivals

Correct: A difficult Conditions for collusion

Collusion is more likely where there are few competitors, similar products, existing communication channels, excess capacity or recession.

17. A finance manager who knows the company's profits will exceed market expectations buys shares before the results announcement. What is the position?

A) This is lawful because he is a shareholder like any other
B) This is insider dealing, which is a criminal offence and a breach of the Code of Ethics
C) This is lawful if he uses his own money
D) This is only a civil matter for the company's board

Correct: B difficult Insider dealing

Dealing on price-sensitive information not yet public is insider dealing, a criminal offence, and breaches integrity and confidentiality.

18. A company uses customer contact details collected for deliveries to send marketing messages without consent. Which area of regulation is most relevant?

A) Environmental law, which controls emissions
B) Competition law, which prohibits price fixing
C) Data protection, which regulates the use of information about customers
D) Employment law, which sets working hours

Correct: C difficult Data protection

Using personal information for purposes beyond those for which it was collected raises data protection issues.

19. A retailer refuses to refund or replace a faulty product despite a consumer's request. Which area of law is relevant?

A) Company law
B) Competition law on mergers
C) Consumer protection law
D) Tax law

Correct: C difficult Consumer protection

Consumer protection laws provide rights such as refunds and replacement where goods are faulty.

20. A bank clerk notices a customer repeatedly depositing just below the reporting threshold. Which authority receives suspicious transaction reports under Bangladesh's money laundering framework?

A) The Registrar of Joint Stock Companies and Firms
B) The Financial Reporting Council
C) The Dhaka Stock Exchange
D) The Bangladesh Financial Intelligence Unit (BFIU) within Bangladesh Bank

Correct: D complex Suspicious transactions

BFIU is the principal authority for money laundering prevention under the Money Laundering Prevention Act 2012.

21. A person with a history of financial misconduct is proposed as a director of a Bangladeshi bank. Which regulator applies fit-and-proper tests to bank directors?

A) BSEC
B) RJSC
C) Bangladesh Bank
D) The Competition Commission

Correct: C difficult Fit and proper

Bangladesh Bank applies fit-and-proper requirements to bank directors.

22. A Bangladeshi company submits its income tax return electronically. To which authority does the return go?

A) BSEC
B) The National Board of Revenue (NBR)
C) Bangladesh Bank
D) RJSC

Correct: B difficult Tax reporting

Tax reporting is made to the NBR, including through its e-return and digital reporting systems.

23. A new rule requires every mid-sized factory to install a costly monitoring system. Which is the most likely business response consistent with mere compliance?

A) Redesign production to cut emissions and save costs
B) Lobby the legislature to repeal all environmental laws
C) Install the system and pass the cost on in prices without changing production methods
D) Ignore the rule and continue as before

Correct: C difficult Costs of regulation

Mere compliance meets the rule but passes the cost to customers. Redesign is the Porter innovation response and ignoring is entrenchment.

24. Which THREE are matters on which cartel members typically collude? (Select THREE.)

Multiple response
A) Output levels
B) Prices
C) Honest pricing of tenders
D) Advertising claims that comply with law
E) Independent product design
F) Bid rigging

Correct: A, B, F difficult Cartel behaviour

Cartel members agree on prices, output, discounts, credit terms, customers and areas and who will win a contract.

25. A single company supplies water to a whole city. Which TWO reasons best justify regulating its prices and service standards? (Select TWO.)

Multiple response
A) To remove any possibility of new entrants
B) To protect consumers' access to an essential service
C) To reduce disclosure to the public
D) To maximise the supplier's profit
E) To prevent exploitation of market power through high prices

Correct: B, E difficult Reasons for regulation

Regulation addresses market failure from monopoly power and protects the public interest in essential services. It is not intended to maximise the supplier's profit or restrict competition.