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CIMA
CIMA Certificate
BA4
Fundamentals of Ethics, Corporate Governance and Business Law Questions and Answers

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698 Students Passed

96% Average Score

92% Same Questions

Viewing page 12 out of 14 pages

Viewing questions 166-180 out of questions

Questions # 166:

The distinction between an employee and an independent contractor is important because only an employee:

i. is given statutory protection in relation to employment rights.

ii. is subject to the deduction of income tax and national insurance under the PAYE system.

iii. can make the employer vicariously liable for his/her torts.

Options:

(i) and (ii) only

(ii) and (iii) only

(i) and (iii) only

(i), (ii) and (iii)

Answer

Questions # 167:

Which TWO of the following are the characteristics of a framework driven by values, principles and ethics?

Options:

Implicit

Discretionary

Detection

Mandatory

Answer

A, B

Questions # 168:

Which of the following is correct?

i. A company intending to issue new shares for cash must first offer them to the existing shareholders.

ii. A company may dispense with the requirement to offer new shares to existing shareholders by passing a special resolution.

iii. A company issuing shares for a non-cash consideration is not required to offer the shares to the existing members first.

Options:

(i) only

(ii) only

(ii) and (iii) only

(i), (ii) and (iii)

Answer

Questions # 169:

B is invited to a big tennis final by one of her clients. Afterwards there is a private party at the client's home. B has too much to drink, and the client ends up sending her home in a taxi. Which fundamental principle has B failed to live up to?

Options:

Professional Behavior

Objectivity

Integrity

Professional Competence and Due Care

Answer

Questions # 170:

Which of the following statements is incorrect?

Options:

A term will be implied into a contract wherever a court considers that it would be reasonable to do so.

A term may be implied into a contract on the basis of previous dealings between the parties.

A term may be implied into a contract by statute.

A term may be implied into a contract on the basis of a trade custom.

Answer

Questions # 171:

Which of the following is correct?

Options:

An ordinary resolution may be passed by 50% plus 1 of the shareholders who are present and voting in favor of the proposal either in person or by proxy.

An ordinary resolution may only be passed by 75% of the shareholders who are present voting in favor of the proposal either in person or by proxy.

An ordinary resolution may only be passed by 51% of all the company's shareholders voting in favor of the proposal either in person or by proxy.

An ordinary resolution may only be passed by all the company's shareholders voting in favor of the proposal either in person or by proxy.

Answer

Questions # 172:

Jimmy wants to sell his scooter, so he puts an advert on the internet with a price of £50.

He quickly gets an offer for the full amount, but then decides that he doesn't want to sell his scooter after all!

The buyer complains and threatens to report jimmy to the police.

This doesn't worry Jimmy as he knows he is not legally obliged to sell his scooter. Why is this?

Options:

Because the advertisement was an open offer.

Because a seller can choose to withdraw their item whenever they want.

Because jimmy only stated that he intended to sell the scooter.

Actually, jimmy does have to sell the scooter.

Answer

Questions # 173:

Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?

Options:

The separation of the roles of Chairman and Chief Executive

The appointment of independent non-executive directors to the Board

The establishment of an audit committee

The appointment of a senior external auditor to the Board

Answer

Questions # 174:

Which of the following statements suggests that A is an employee in relation to the work he carries out for BCD Ltd?

i. He is required to provide his own tools.

ii. He is required to carry out his work personally and is not free to send a substitute.

iii. He is in receipt of pay after income tax has been deducted under PAYE.

Options:

(i) and (ii) only

(ii) and (iii) only

(i) and (iii) only

(i), (ii) and (iii)

Answer

Questions # 175:

In regards to a claim of misrepresentation, which of the following must be proved to show that the defending party induced the other party into entering the contract?

Select ALL that apply.

Options:

The other party knew of the existence of the representation

The other party allowed the representation to affect their judgement.

The other party was unaware of the representation's falsity.

The other party was of a sound mind.

The other party had no relationship with the offending party when the representation was made.

Answer

A, B, C

Questions # 176:

Which of the following statements about the relationship between external and internal auditors is FALSE?

Options:

Internal and external auditors should meet regularly to ensure timely and efficient completion of the work

In some countries, there is a statutory requirement to have both an internal and an external audit

Internal auditors may provide engagement work programs and working papers to external auditors

Oversight of the work of external auditors is the responsibility of the chief internal auditor

Answer

Questions # 177:

Which of the following CANNOT be appointed as the sole director of a private company limited by shares?

(i) A person over the age of 70 years

(ii) A person under the age of 16 years

(iii) A private company limited by shares

Options:

(i) only

(i) and (iii) only

(iii) only

(ii) and (iii) only

Answer

Questions # 178:

If the IFAC Code of Ethics is in conflict with the laws of a particular country, then which of the following statements is TRUE?

Options:

The law takes precedence over the IFAC Code of Ethics

The IFAC Code of Ethics takes precedence of the country's laws

The accountant has to make his or her own decision about whether to adhere to the IFAC Code of Ethics or the law

The accountant has a public duty to question the laws of the country in question

Answer

Questions # 179:

John is conducting an external audit on a biscuit factory. He wants to make sure that his audit is comprehensive and thorough. To do this, he aims to make full use of his powers and rights.

Which of the following is John allowed to do?

Select ALL that apply.