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

1. Which of the following is correct?

A) The shares of all public limited companies are quoted on the Stock Exchange.
B) A public limited company cannot trade until it has paid up share capital of at least £50,000.
C) The company secretary of a public limited company must be qualified.
D) A private limited company must have at least two shareholders.

2. Intimidation threats to compliance with fundamental principles are described as threats that may occur

A) when a previous judgment needs to be re-evaluated by the professional accountant responsible for that judgment
B) when a professional accountant promotes a position or opinion to the point that subsequent objectivity may be compromised
C) as a result of the financial or other interests of a professional accountant or of an immediate or close family member
D) when a professional accountant may be deterred from acting objectively by threats, actual or perceived

3. You work for an international mining company. Which of the following corporate issues is NOT related to ethics or social responsibility?

A) The impact of your operations on the environment
B) Your company's response to HIV/Aids among workers in sub-Saharan Africa
C) Whether employees are paid a fair wage
D) Deciding whether to approve a planned refurbishment of head office

4. In relation to international regulations, which of the following is correct?
i. International regulations seek to establish common standards between professions practicing in different States so as to further international cooperation and agreement.
ii. International regulations agreed by the professional bodies of different States have the force of international law.
iii. International regulations which harmonies standards and procedures may be incorporated into contracts by commerce and the professions.

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

5. Which of the following is a civil action?
i. An action by a local authority against a restaurant for selling impure food.
ii. An action by a taxpayer against Her Majesty's Revenue and Customs ("HMRC") in relation to an expenses claim which has been refused by the Inspector of Taxes.
iii. An action by Exe Ltd against Zed Ltd for supplying equipment which was found to be dangerous.

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

Solutions: