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CIMA BA4 - Fundamentals of Ethics, Corporate Governance and Business Law

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Page: 6 / 14
Total 661 questions

Which of the following are situations in which the accountant is permitted to disclose confidential information?

Select ALL that apply.

A.

The company is being investigated for legal infringement.

B.

One of the company's clients permits the disclosure of their financial records.

C.

A family member wants to know the details of the company's clients' finances.

D.

A similar firm wants to take a look at the company's most recent financial report.

After the Companies Act 2006, which of the following is correct in relation to a reduction of capital by a public company?

(i) If the reduction results in the company no longer having the authorized minimum capital for a public company, it may be necessary to re-register as a private company.

(ii) The Articles of Association may restrict the company's ability to reduce capital.

(iii) The reduction must be approved by the court.

A.

(i) only

B.

(i) and (ii) only

C.

(ii) and (iii) only

D.

(i), (ii) and (iii)

How can values become part of a company's DNA? Choose TWO of the following options.

A.

Through leadership and example from the top

B.

Guidance and training for all staff

C.

Through corporate scandals

D.

Through proxy indicators

Immediately before being placed in creditors voluntary liquidation, Tom, the sole director of Bee Ltd, arranged for the company to make an early repayment of an unsecured loan made to Bee Ltd by his wife Anne. Which of the following is correct?

A.

The company has acted in breach of fiduciary duty and can be made liable up to the amount of the loan.

B.

The company has given a "preference" to Anne, and the court may make any order it thinks fit to restore the position to what it was before Anne was repaid.  

C.

The company has entered into a "transaction at an undervalue" with Anne, and the court may fine or imprison Tom.

D.

The transaction amounts to "wrongful trading" and Tom may be held personally liable up to the amount of the loan.    

Which of the following are cases where the veil should be lifted? Select ALL that apply.

A.

The pink company - Failed to disclose the full company name on official documents.

B.

The orange company - Continues to trade even though it knows it is in irrevocable debt

C.

The white company - An investigative journalist reveals that the company has been deliberately avoiding tax.

D.

The red company - Continues to trade despite being having small debts.

E.

The black company - Trades with a company based in a country experiencing civil war.

Company A has recently been having problems matching the views of its employees to its own. Which of the following might help their situation? Select ALL that apply.

A.

Only hire those who share the company's views.

B.

Ensure management level employees follow the actions and behaviour of those higher up.

C.

Teach employees the company's values and train them to follow them.

D.

Remove any barriers that might prevent an employee from adhering to the company's ethics.

E.

Reward those who consistently recognise and and adhere to the company's values.

F.

Discipline those who regularly ignore the company's rules and values.

G.

Threaten legal action against those who regularly ignore the company's ethics.

Which of the following is correct?

A.

A special resolution may be passed by 51% of the shareholders who are present voting in favor of the proposal either in person or by proxy.

B.

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

C.

A special resolution may only be passed by 75% of all the company's shareholders voting in favor of the proposal either in person or by proxy.

D.

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

Who is bound by the articles of association?

A.

The company + Shareholders

B.

The company

C.

Shareholders

D.

Stakeholders

E.

The company + Stakeholders

N is a CIMA qualified accountant working within a complex and evolving organisation A new HR manager. Q, has been employed and has reviewed the salaries of the accounting team in order to reduce the expense to the company.

Q suggests that N's position could be outsourced to an accounting servicing company to save money. This outsourcing team does not employ professionally qualified accountants

N's finance director emphatically disagrees with Q's suggestion

Which THREE of the following are justifications for retaining N's services?

As a CIMA qualified accountant N

A.

takes personal responsibility for ensuring that he is professionally competent to undertake work for the company

B.

takes personal responsibility for ensuring that the information he provides is unbiased and unaffected by conflicts of interest

C.

takes personal responsibility for ensuring that he is independent in his relationship with his employer.

D.

takes personal responsibility for ensuring that he is straightforward and honest in his business dealings

E.

takes personal responsibility for ensuring that his behavior complies only with that of his professional body and therefore the company can have confidence in his work and complain to his professional body if they are unhappy

F.

takes personal responsibility for ensuring the accuracy and validity of the judgments of his directors in assessing the risk appetite of the company.

In resolving an ethical dilemma, which of the following would NOT be a useful approach to take when focusing on finding an ethical solution?

A.

Asking yourself whether the possible solutions are legally acceptable

B.

Testing the issue against CIMA's Code of Ethics

C.

Asking colleagues for their advice

D.

Identifying whether the possible solutions would make you more or less popular with colleagues

In the event of a conflict between European Law and French Law which will prevail?

A.

French private law

B.

French public law

C.

The French Code Civile

D.

European law

Which of the following statements is true?

A.

The CIMA Code of Ethics is based on the IFAC Code of Ethics

B.

The IFAC Code of Ethics is based on the CIMA Code of Ethics

C.

The CIMA and IFAC codes take a very different approach

D.

The CIMA Code of Ethics is compliance based while the IFAC Code of Ethics is principles based

Which one of the following reasons is not automatically an unfair reason for dismissal?

A.

An employee's gross misconduct.

B.

Lack of qualification.

C.

An employee's pregnancy.

D.

Contravention of a statute.

The UK Corporate Governance Code is primarily concerned with the effective control, business efficacy and accountability of the management of public listed companies for the benefit of which of the following?

A.

Shareholders

B.

Stakeholders

C.

Investors

D.

Employees

B a new employee, has noticed that other members of staff in the company falsely complete their timesheets at the end of the month, making it look like they have worked more hours than they actually have.

When asked about it, C. another employee stated that management were aware of the practice, but they were happy to tolerate this as long as it was a limited amount extra, and it was up to B to decide whether or not to do the same B decided to add a few extra unworked hours to her own timesheet

This is an example of what type of influence on ethical behavior?

A.

Professional codes of ethics

B.

Corporate governance

C.

Peer pressure

D.

Corporate culture