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CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:

1. Which of the following statements are correct in relation to an offer?
1. An offer may be made to the whole world
2. An offer cannot be withdrawn until the offeree has had the opportunity of accepting or rejecting the offer.
3. An item in a shop window marked "Special Offer" is not an offer in law.

A) 1 only
B) 1 and 2 only
C) 1 and 3 only
D) 2 only

2. One of your colleagues has just been poached by a competitor. You have reason to suspect that he has provided his new employer with sensitive information about your company that could disadvantage your employer. This affects the CIMA Code of Ethics fundamental principle of:

A) Confidentiality
B) Responsibility
C) Cooperation
D) Respect

3. Which of the following statements is incorrect in relation to the revised derivative action under section
260 of the Companies Act 2006?
(i) The action may be brought by a single shareholder.
(ii) The action may be brought in relation to an act of negligence by the directors.
(iii) The action cannot be brought in respect of a proposed act by the directors.

A) (ii) only
B) (iii) only
C) (i) only
D) (ii) and (iii) only

4. What is the public function of all accountants?

A) To give financial judgments to owners and shareholders
B) To do a job and go home
C) To provide truthful and independent accounts of finances
D) To represent the life-cycle of accounts

5. Which of the following is correct in relation to corporate governance in the UK?
(i) If a listed public company in the UK fails to comply with the UK Corporate Governance Code, the company and the board may be prosecuted by the Financial Services Authority.
(ii) The duties of directors are codified in the Companies Act 2006 and breaches are enforceable by the company.
(iii) The ability of the majority of shareholders to dismiss a director for any reason whatsoever is the main sanction provided by the UK Corporate Governance Code.

A) (ii) only
B) (i) only
C) (ii) and (iii) only
D) (i) and (ii) only

Solutions: