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

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Page: 9 / 14
Total 661 questions

Which of the following is correct?

(i) The first directors are appointed upon the incorporation of the company.

(ii) A director is a person who occupies the position of director by whatever name called.

(iii) A shadow director is a person in accordance with whose directions or instructions the directors of the company are accustomed to act.

A.

(i) only

B.

(i) and (ii) only

C.

(ii) and (iii) only

D.

(i), (ii) and (iii)

Which of the following is incorrect?

A.

An invitation to treat is a call to start negotiations.

B.

A person must know of an offer before he can accept it.

C.

An acceptance is ineffective unless it is communicated to the offeror by the offeree personally.

D.

An agreement is not binding in English law unless it is supported by consideration or contained in a deed.  

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.

A.

(i) and (ii) only

B.

(ii) and (iii) only

C.

(i) and (iii) only

D.

(i), (ii) and (iii)

In Germany the two-tier board structure is used by many limited liability companies. A two-tier board structure is made up of a Management Board and which other organ?

A.

A Supervisory Board

B.

A Nominations Committee

C.

A Quality Assurance Board

D.

A Remuneration Committee

Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?

A.

Constancy

B.

Confidentiality

C.

Contemplation

D.

Conviction

Where a countries' rules protect whistleblowers. they usually only do so where there has been a "qualifying disclosure" Which of the following statements best describes the minimum level of information which a whistleblower needs to have to make a "qualifying disclosure"?

A.

Certainty that at least one company rule is being breached or has been breached in the past

B.

Knowledge that company rules are about to be breached

C.

Reasonable grounds to believe that sufficiently serious malpractice is taking place

D.

A suspicion that serious malpractice has taken place

Exe Ltd has five members. A has 90% of the shares and the other four members holds 2.5% of the shares each.

 

Which of the following is correct in relation to the calling of a general meeting on short notice?

A.

All five of the members must agree to short notice

B.

A alone may call the meeting on short notice

C.

Any three of the members may agree to the meeting being held on short notice

D.

A and any two of the other members can agree to short notice

Which of the following is CORRECT in relation to an alteration of a company’s articles of association?

(i) A copy of the resolution and the amended articles must be filed with the Registrar of Companies within 15 days of the date of the resolution.

(ii) The articles of association may be amended by an ordinary resolution with special notice.

(iii) An alteration of the articles cannot discriminate between the majority and minority shareholders.

A.

(i) only

B.

(ii) only

C.

(i) and (ii) only

D.

(i) and (iii) only

Evidence suggests that during a recession, companies with a clear sense of ethical direction will:

A.

Continue to be profitable

B.

Lose business to unethical companies

C.

Be more expensive to run

D.

Be a poor investment

According to CIMA, what is accountability?

A.

Being responsible to someone and for something or action

B.

Being able to explain the actions that one has taken

C.

An important aspect of the profession and of leadership in the wider business environment

D.

All of the above

Which of the following are qualities the CIMA accountant are expected to display and develop? Select ALL that apply.

A.

Reliability

B.

Responsibility

C.

Respect

D.

Timeliness

E.

Courtesy

F.

Relevance

G.

Faithful representation

The chief executive of a transnational corporation states on her curriculum vitae that she has an MBA which she does not in fact have. Is this an ethical issue and why?

A.

Yes - lying is an ethical issue and casts doubt on the integrity of the individual

B.

Maybe - depending on whether the lack of an MBA would mean that she is not competent to do her job

C.

Maybe - depending on whether anyone finds out or not

D.

No - everyone lies on their CV

X is in the process of setting up a private company limited by shares X is considering including certain provisions in the articles of association. Which of the following provisions would be enforceable by and against the company?

1 Dividend rights of the members

2. Terms relating to bonuses of directors

3. Payment terms of suppliers.

A.

1 only

B.

1 and 2 only

C.

2 and 3 only

D.

1,2 and 3

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

A.

The appointment of a competent Company Secretary

B.

The establishment of a company website

C.

The separation of the roles of Chairman and Chief Executive

D.

The appointment of independent non-executive directors to the Board

Which of the following best describes the consequences of being found to be unethical for an individual CIMA member?

A.

Loss of reputation, suppliers and customers

B.

Loss of reputation, status and earning potential.

C.

Loss of reputation, credibility and Chartered Institute status.

D.

Loss of reputation, public trust and customers