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

1. Which of the following statements is correct?
(i) A term may be implied into a contract by statute.
(ii) A term may be implied into a contract on the ground that it is a trade custom.
(iii) A term may be implied into a contract by a court in order to give the agreement "business efficacy".

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

2. Which of the following statements refer to PLCs? Select ALL that apply.

A) Can offer shares on the stock market.
B) Must hold a minimum capital of $25,000
C) Registered under the Companies Registrar.
D) Generally small enterprises.
E) Never has a suffix at the end of the company name.

3. You are happy to be held accountable for your actions and hope that others can trust and depend upon you. Which TWO of the personal qualities identified by the CIMA Code of Ethics does this demonstrate?

A) Respect
B) Responsibility
C) Timeliness
D) Reliability

4. ABC plc has acted in breach of its health and safety obligations and this has led to a number of employees and members of the public being injured.
Which of the following is correct?
The breach could give rise to:
i. Civil claims on the part of the employees and members of the public
ii. Enforcement action by the Health and Safety Executive
iii. Criminal sanctions against ABC plc

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

5. Which ONE of the following statements is correct in relation to the UK Corporate Governance Code?

A) If any company fails to comply with the Code, the directors may be sued for breach of duty by the company on behalf of the shareholders
B) If the Code is ignored by any company, no action may be taken as it has no legal status
C) If a public company fails to comply with the Code, it may be sued for breach of statutory duty by those who have suffered loss as a result
D) If a listed public company fails to produce a report explaining why it has not implemented the Code's recommendations, it has acted in breach of the Code

Solutions: