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

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Viewing page 4 out of 14 pages

Viewing questions 46-60 out of questions

Questions # 46:

Alongside technical competence what, for example, should the management accountant ask themselves?

Options:

Am I being objective and impartial?

Am I telling the client what they want to hear?

Am I protecting my home and family?

Am I being subjective and impartial?

Answer

Questions # 47:

In relation to the law of misrepresentation, which of the following statements is incorrect?

Options:

Damages are available for innocent misrepresentation under the Misrepresentation Act.

Misrepresentation renders a contract voidable.

A victim of fraudulent misrepresentation may seek rescission and damages.

A false statement of fact may give rise to remedies in both contract and tort.

Answer

Questions # 48:

Which of the following are recommended by the UK Corporate Governance Code?

(i) The roles of Chairman and Managing Director should be separated

(ii) A senior independent director should be identified and available as a contact for shareholders

(iii) At least one half of the board as a whole should be made up of independent non-executive directors

Options:

(i) only

(i) and (ii) only

(i) and (iii) only

(i), (ii) and (iii)

Answer

Questions # 49:

B was employed by CDE Ltd and was dismissed. B claimed unfair dismissal and requested a written statement of reasons for his dismissal. Within what period must CDE Ltd comply with this request?

Options:

7 days

14 days

21 days

1 month

Answer

Questions # 50:

Which of the following is correct in relation to a company's ability to have a restricted objects clause in its constitution?

(i) A company may restrict its objects in its constitution

(ii) Any clause restricting the company's objects should be included in the company's articles of association

(iii) The shareholders may pass a special resolution to alter the company's constitution by including a clause which restricts the company's objects

Options:

(i) only

(ii) only

(i) and (ii) only

(i), (ii) and (iii)

Answer

Questions # 51:

T contracted to buy a washing machine from AB (Retailers) Ltd for his personal use at home. The contract contained a term excluding liability for any breach of the condition implied by the Sale of Goods Act 1979 that the goods should be of "satisfactory quality". The contract was on AB (Retailers) Ltd's standard form contract.

Which of the following is correct?

(i) Conditions implied by the Sale of Goods Act 1979 cannot be excluded in any sale.

(ii) This is a consumer sale and the clause excluding liability is void.

(iii) This is a non-consumer sale and the clause is void unless reasonable.

Options:

(i) only

(ii) only

(iii) only

(i) and (ii) only

Answer

Questions # 52:

You work for a chain of restaurants. The head chef of your flagship restaurant raises questions about the inclusion of highly endangered species of fish on the restaurant's menu. Is it an ethical issue and why?

Options:

Yes - because it could deny customers the choice of certain types of fish

Yes - because it relates to the environmental issue of overfishing and depletion of fish stocks

No - because it will cost the restaurant money to source alternative produce

No - because business cannot be accountable for environmental issues

Answer

Questions # 53:

Which of the following statements are part of CIMA's definition of professional behavior?Please select the TWO statements that apply.

Options:

Compliance with laws and regulations

Compliance with guidelines and standards

Avoid any action that discredits the profession

Avoid any action that discredits one's employer or client

Answer

A, C

Questions # 54:

Governance denotes the generic way an organization is run with particular emphasis on:

Options:

Accountability, integrity, risk management

Accounting, integrity, risk management

Accountability, integration, financial management

Accounting, integration, financial management

Answer

Questions # 55:

Agency theory is often cited as an explanation for the development of corporate governance Which TWO of the following statements are correct?

Options:

Agency theory assumes that the goals of the managers of the company are the same as the owners of the company

Agency theory requires that the managers of the company act in the interests of the owners of the company

Agency theory assumes that the goals of the managers of the company are different from the owners of the company

Agency theory explains the issues which arise from the separation between the owners of the company and those who control it

Agency theory defines the problems that arise from the dependency of an organisation on resources

Answer

C, D

Questions # 56:

Ethical dilemmas can arise where there is tension between:

Options:

Societal and professional values

Professional and corporate values

Corporate and personal values

All of the above

Answer

Questions # 57:

Which of the following statements is INCORRECT?

(i) A counter offer has the legal effect of destroying the original offer and putting another offer in its place.

(ii) For an agreement to be valid at law, the offer and the acceptance must be in the same form.

(iii) Agreements made by email are unenforceable at law.

Options:

(i) only

(ii) only

(iii) only

(ii) and (iii) only

Answer

Questions # 58:

In assessing a compensation award for unfair dismissal, which of the following is incorrect?

Options:

A basic award is calculated related to the alleged employee's conduct and circumstances of the case.

A compensatory award may additionally be made.

The award may be reduced if the employee's conduct contributed to the dismissal.

Any award is subject to the statutory minimum sum identified.

Answer

Questions # 59:

Rank the following, starting with the highest court:

(i) Crown Court

(ii) Supreme Court

(iii) Magistrates

(iv) Court of Appeal (Criminal)

Options:

(iii), (i), (iv), (ii)

(i), (ii), (iii), (iv)

(ii), (iv), (i), (iii)

(iv), (ii), (i), (iii)

Answer

Questions # 60:

One of your colleagues is running an event to raise money for a local charity. One evening, you see her taking boxes of pens, notepads and post-it notes. When you challenge her, she says that she is taking them for her fundraising and, although she has not asked permission to take them, she is sure the company will not mind. Is this an ethical issue and why?