Preview Questions Corporate Counsel | Role Specific Skill

Question 1: How does a corporate counsel assess "compliance with competition laws" in business transactions?

Which action should you take?

Choose only one option

By assuming that competition laws only apply to large corporations, not small ones

By focusing only on the financial aspects and ignoring antitrust concerns

By ensuring that the transaction does not lead to anti-competitive practices or market monopolies, and by reviewing applicable antitrust laws

By avoiding antitrust discussions to speed up the transaction process

Question 2: What is the primary purpose of "enterprise risk management" (ERM) in a corporation?

Which action should you take?

Choose only one option

To centralize all decision-making in one department

To ensure that only the finance department manages risks

To identify, assess, and mitigate risks that could affect the company's operations

To reduce operational costs through layoffs

Question 3: How does a Corporate Counsel evaluate the effectiveness of a company's internal controls in mitigating legal risks?

Which action should you take?

Choose only one option

By assuming that existing controls are sufficient and do not require further evaluation

By ignoring internal controls and focusing solely on external risk management strategies

By conducting periodic reviews, assessing compliance with relevant laws, and adjusting internal policies to address emerging risks

By relying on external auditors to manage internal controls without internal input

Question 4: When negotiating the financial terms of a contract, how should a corporate counsel handle "fixed" vs. "variable" costs?

Which action should you take?

Choose only one option

By carefully considering which cost structure aligns with the parties' interests and objectives

By always choosing variable costs to ensure flexibility

By ignoring cost structure and focusing on timelines

By focusing only on fixed costs to avoid volatility

Question 5: How does a corporate counsel assess "business continuity risks" in legal matters?

Which action should you take?

Choose only one option

By focusing only on the business's operational needs and ignoring legal considerations

By ignoring risks until they materialize and responding reactively

By assuming that business continuity risks are covered under insurance policies

By evaluating potential legal risks that could disrupt business operations, and ensuring contingency plans are in place

Question 6: What is the role of "tax considerations" in structuring an M&A deal?

Which action should you take?

Choose only one option

Tax considerations are irrelevant as long as the deal terms are agreed upon

Tax issues can be ignored if both parties agree to a financial structure

Tax considerations are only relevant for public companies and not for private transactions

Tax considerations play a critical role in structuring the deal in a tax-efficient manner, minimizing liabilities and optimizing benefits