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

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Page: 7 / 14
Total 661 questions

Which of the 'fundamental principles' of CIMA's Code of Ethics is defined as follows?

 

"A professional accountant should act diligently and in accordance with applicable technical and professional standards"

A.

Integrity

B.

Objectivity

C.

Professional competence and due care

D.

Professional behavior

The introduction of restrictions on how companies are permitted to advertise to children is a UK government reaction to a tension between:

A.

Professional and corporate values

B.

Corporate and societal values

C.

Personal and societal values

D.

Personal and professional values

Which of the following statements is correct following the enactment of the Companies Act 2006?

(i) A public company must hold an annual general meeting within six months of the end of its accounting reference date.

(ii) A private company is no longer required to hold an annual general meeting.

(iii) A private company must give 21 days' notice of a general meeting. 

A.

(i) and (ii) only

B.

(ii) and (iii) only

C.

(i) and (iii) only

D.

(i), (ii) and (iii)

Which of the following statements is correct?

(i) The Articles of Association of a private company limited by shares may be altered by special resolution.

(ii) The Articles of Association of a private company limited by shares may be altered by a written resolution.

(iii) The Articles of Association of a private company limited by shares may be altered by an ordinary resolution.      

A.

(i) only

B.

(ii) only

C.

(i) and (ii) only

D.

(ii) and (iii) only

The International Accounting Education Standards Board has published a document titled "Approaches to the Development and Maintenance of Professional Values, Ethics and Attitudes in Accounting Education Programs'", which provides guidance about the personal qualities needed by accountants to meet the expectations of the public

The particular qualities which it identifies are

A.

responsibility, accountability, timeliness, independence and respect

B.

reliability, responsibility, timeliness, independence and respect

C.

responsibility, accountability, courtesy, independence and respect

D.

reliability, responsibility timeliness, courtesy and respect

Which THREE of the following statements are correct in relation to the essential elements of a contract?

A.

A conditional offer cannot be accepted until the condition has been satisfied

B.

A revocation of an offer is only valid when it is received by the offeree, unless it is sent by post in which case it is valid as soon as it is posted

C.

Even if the parties are fully in agreement, the agreement will be unenforceable unless at least one of the parties has provided consideration

D.

A request for further information in relation to an offer has the effect of cancelling the offer

E.

If an offer is rejected it can only be revived by the person who made the offer

F.

Once an offer has been made it does not exist forever but will lapse after a reasonable time

B agreed in his contract that he would not work for a competitor of Gee Ltd for a period of 12 months after leaving the company's employment. On leaving Gee Ltd, B worked for Zed Ltd, a competitor of Gee Ltd. If the restriction in B's contract with Gee Ltd should be found to be reasonable, which of the following remedies is Gee Ltd entitled to? 

(i) A decree of specific performance forcing B to comply with his contract with Gee Ltd.

(ii) Damages in respect of any loss caused by B's breach of contract.

(iii) An injunction to stop B working for Zed Ltd. 

A.

(i) only

B.

(i) and (ii) only

C.

(ii) and (iii) only

D.

(i), (ii) and (iii)

Tee Ltd has contracted to use Vee Ltd's "Grand Hotel" for a business conference. Which of the following would not be regarded as a valid excuse for Vee Ltd for the unavailability of the hotel on the agreed date?

(i) The hotel was closed due to flood damage.

(ii) The hotel was double booked.

(iii) The hotel manager had arranged to have the hotel redecorated; the decorators had failed to complete the work by the agreed date.

A.

(i) only

B.

(iii) only

C.

(ii) and (iii) only

D.

(i), (ii) and (iii)

S is management accountant for a small retail company. S has discovered a possible fraud in the purchasing department. The manager of that department has told S that he is aware of the fraud and will 'deal with it'.

 

Which ONE of the following would it be appropriate for S to do?

A.

Nothing

B.

Advise a director of the company

C.

Ask for confirmation in writing from the manager

D.

Bring the matter to the attention of the police

E.

Ask for advice from the company's external auditors

Which of the following is incorrect in relation to Shari'ah law?

A.

Islamic law provides for matters spiritual and physical

B.

Eating pork is prohibited

C.

Criticism of the prophet Mohammad is accepted

D.

Apostasy is similar to the law of treason in the UK

Which of the following are TWO reasons why new legislation might be introduced in response to corporate scandals?

A.

To prevent this type of unethical behavior by making it illegal

B.

To punish individuals for adhering to codes of ethics

C.

To encourage companies to make their own decisions about ethical matters

D.

To enforce minimum standards of behavior

CIMA's report on 'Practical Proposals to Improve Corporate Governance Disclosure' explores a range of ideas Which of the following statements is correct?

A.

In focusing on improving corporate governance disclosure the skills, experiences and personalities of the board should explain how the board ensures robust decision-making

B.

In focusing on improving corporate governance disclosure the board activities should be linked into key aspects of the corporate performance and strategic development to enable users to evaluate the effectiveness of the board

C.

In focusing on improving corporate governance disclosure the information provided should be standardised to enable shareholders to compare performance with other companies.

D.

In focusing on improving corporate governance disclosure the board should evaluate its own effectiveness by focusing on how its actions have improved profit.

Which of the following is correct?

(i) The provisions of the Memorandum of Association do not form a contract between the members and the company.

(ii) The provisions of the Articles of Association form a contract between the members and the company.

(iii)      One member may sue another directly on the provisions in the Articles of Association which contain ordinary membership rights.

A.

(i) only

B.

(ii) only

C.

(i) and (ii) only

D.

(ii) and (iii) only

Which of the following is correct?

A.

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.

B.

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.

C.

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.

D.

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.

A business that behaves ethically may experience which of the following benefits; Select ALL that apply.

A.

Little or no legal action

B.

Improved reputation

C.

Improved staff morale

D.

Competitive advantage

E.

Increased market penetration

F.

Higher productivity levels

G.

Increased profits