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CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
1. In a situation where a professional accountant needs to choose in whose interest he or she is to behave and act, which of the following interests should he or she put first?
A) Public interest
B) Employer's interest
C) Client's interest
D) CIMA's interest
2. Which of the following is incorrect in relation to a company registered after the Companies Act 2006 was fully in force?
A) If the company has restrictions on its objects they may be amended by special resolution.
B) The company may choose to restrict its objects by including provisions to that effect in its Articles of Association.
C) The company will not be able to place any restrictions on its objects clause.
D) The company is to be treated as if it has unlimited objects.
3. Which of the following is NOT a 'financial stakeholder' of an organization?
A) Competitor
B) Government
C) Customer
D) Employee
4. A Ltd contracted to deliver a quantity of goods to B Ltd for £5,000. The goods were delivered and A Ltd submitted an invoice to B Ltd for the amount due which contained a number of new terms. Which of the following is incorrect?
A) B Ltd is only bound by the terms if it was given notice of them at or before the time of the contract.
B) If B Ltd is unaware of the terms, it can only be bound by them if it agrees to be so.
C) B Ltd is bound by the terms if there is a sufficient course of dealings between A Ltd and B Ltd so that B Ltd is assumed to know of the terms.
D) The invoice is a contractual document and B Ltd is bound by the terms on the invoice.
5. In relation to the law of misrepresentation, which of the following statements is incorrect?
A) Damages are available for innocent misrepresentation under the Misrepresentation Act.
B) A victim of fraudulent misrepresentation may seek rescission and damages.
C) A false statement of fact may give rise to remedies in both contract and tort.
D) Misrepresentation renders a contract voidable.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: A |
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