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Fundamentals of Ethics, Corporate Governance and Business Law

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Total Questions : 661

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Question # 1

Which of the following contracts might be specifically enforceable?

Options:

A.  

A has contracted to sell his house to B but has changed his mind and no longer wishes to sell it.

B.  

C has contracted to buy a new Ford motor car but the garage is now refusing to honor the contract.

C.  

D has contracted to purchase a number of tins of fruit for her business but the seller has now stated that he no longer wishes to proceed with the contract.

D.  

E has contracted to sing at a concert organized by F, but E has withdrawn as he has received a more lucrative offer from

G.  

Discussion 0
Question # 2

Paul has been held personally liable to contribute to the assets of P Ltd as a result of his "fraudulent trading" under Section 213 of the Insolvency Act 1986. The court is about to disqualify Paul from acting as a director. What is the maximum period for which he may be disqualified?

Options:

A.  

No maximum.

B.  

5 years.

C.  

10 years.      

D.  

15 years.

Discussion 0
Question # 3

You work for an accountancy firm and discover that a member of an assurance team has a significant conflict of interest. You take CIMA's Code of Ethics with you when you alert your board of directors as to why this is an important issue, but the board decides that the conflict of interest is not important. This is an example of tension between:

Options:

A.  

Corporate and professional values

B.  

Corporate and societal values

C.  

Societal and personal values

D.  

All of the above

Discussion 0
Question # 4

Which of the following statements apply to multinational corporations? Select ALL that apply.

Options:

A.  

Financial statements will need to be prepared in different ways in different countries.

B.  

The company's investors will find it difficult to interpret and compare results.

C.  

Expanding into new markets will be more difficult due to potential bureaucracy.

D.  

Administrative burden and compliance costs will be reduced.

E.  

Assessment of other companies will be easier to do.

Discussion 0
Question # 5

Which of the following is incorrect?     

Options:

A.  

A ratio decidendi of the Supreme Court is binding on the Court of Appeal.

B.  

The Supreme Court is bound by a previous House of Lords ratio decidendi.

C.  

A ratio decidendi of the Court of Appeal is binding on the High Court.

D.  

A ratio decidendi of the Supreme Court is binding on the High Court.

Discussion 0
Question # 6

Which of the following is INCORRECT in relation to business names?

Options:

A.  

The business name of a private company limited by shares must end in “Limited” or “Ltd”.

B.  

Both public and private companies may use a business name.

C.  

If a business name is used, the name of the proprietor must be stated on business correspondence and at the premises where the business is carried on.

D.  

If a business name is used which is the same or very similar to that of an existing business, an action in the tort of passing off may be brought by the existing business.

Discussion 0
Question # 7

What has been the root of the majority of recent corporate scandals?

Options:

A.  

Misapplication or ignoring of ethical values

B.  

Misapplication or ignoring of accounting principles

C.  

Misapplication or ignoring of regulations

D.  

Misapplication or ignoring of human rights

Discussion 0
Question # 8

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

Options:

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

Discussion 0
Question # 9

Zed Ltd was incorporated in 2010 and has chosen to use the standard Model Articles of Association.  The company is considering appointing Max as a director of the company.

 

Which of the following is incorrect?

(i) Max cannot be a director of the company unless he holds shares in the company.

(ii) Max cannot be a director of the company if he is an undischarged bankrupt.

(iii) Max cannot be a director of the company if he is subject to a disqualification order.

Options:

A.  

(i) only

B.  

(i) and (ii) only

C.  

(ii) only

D.  

(ii) and (iii) only

Discussion 0
Question # 10

Bill is conducting an audit on a furniture manufacturer. There doesn't appear to be any major issues with the company and its finances. However, Bill has noticed that the company has adopted a new set of accounting

standards unusually early.

What should Bill do?

Options:

A.  

Document this finding in an 'emphasis of matter' statement

B.  

Issue a modified audit report as he is satisfied the elements examined.

C.  

Issue a modified audit report as he is unsatisfied with the elements examined.

D.  

Issue an adverse opinion due to concerns raised during the audit.

Discussion 0
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