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Fundamentals of Ethics, Corporate Governance and Business Law

Last Update 1 day ago
Total Questions : 661

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Question # 61

Which of the following is incorrect?

(i) All contracts must be in writing.

(ii) A contract to sell land must be in writing.

(iii) A contract of employment must be in writing.

Options:

A.  

(i) only

B.  

(i) and (iii) only

C.  

(ii) and (iii) only

D.  

(i), (ii) and (iii).

Discussion 0
Question # 62

How can a company help employees make the right decision when faced with a difficult situation?

Options:

A.  

Offer guiding values and principles to underpin decision-making

B.  

Threaten them with disciplinary procedures

C.  

Give them a rule book

D.  

Have a strong rules-based culture

Discussion 0
Question # 63

Which of the following is correct?

(i) A contract for the sale of land must be in writing.

(ii) A consumer credit agreement must be in writing.

(iii) A contract of employment must be in writing.

Options:

A.  

(i) only

B.  

(i) and (ii) only

C.  

(i) and (iii) only

D.  

(i), (ii) and (iii)

Discussion 0
Question # 64

Which of the following governs all public sector employees?

Options:

A.  

The Seven Principles of Public Sector Participation

B.  

The Seven Principles of Public Enterprise

C.  

The Seven Principles of Public Life

D.  

The Seven Principles of Public Private Partnership

Discussion 0
Question # 65

You work for an airline company and discover a series of regular payments made to a lobbying group that campaigns to allow people freedom to fly as and when they choose without being taxed for contributing to global warming. The group's website includes specific commentary that claims to 'expose the myth of global warming'. Neither your company nor the lobbying group (which describes itself as 'independent') mention the financial link between your organizations. Is this an ethical issue and why?

Options:

A.  

Yes - the lobbying group appears to be funded at least in part by your company so it is not independent and is therefore misleading people about its status

B.  

Maybe - depending on whether the lobbying group is funded by other airlines as well as your company

C.  

No - companies are entitled to fund any groups that they choose, particularly if it is in their financial interest. Neither party has done anything unethical

D.  

No - there is unlikely to be any connection between the payments and the group's aims. After all, companies regularly fund Non-Government Organizations (NGOs) and other types of organization

Discussion 0
Question # 66

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?

Options:

A.  

Employer's interest

B.  

Client's interest

C.  

CIMA's interest

D.  

Public interest

Discussion 0
Question # 67

Zed plc has appointed Wye and Co (accountants) as auditors of the company. If the audit is carried out negligently which of the following are entitled to claim against the auditors?

Options:

A.  

Zed plc only

B.  

Zed plc and the directors of Zed plc.

C.  

Zed plc, its directors and shareholders.

D.  

Zed plc, its directors and shareholders and any other person who has suffered loss as a result of the negligent audit.    

Discussion 0
Question # 68

One of your colleagues has just been poached by a competitor. You have reason to suspect that he has provided his new employer with sensitive information about your company that could disadvantage your employer. This affects the CIMA Code of Ethics fundamental principle of:

Options:

A.  

Responsibility

B.  

Respect

C.  

Confidentiality

D.  

Cooperation

Discussion 0
Question # 69

Which of the following is an 'interest stakeholder' in an organization?

Options:

A.  

Customer

B.  

Employee

C.  

Government

D.  

Competitor

Discussion 0
Question # 70

Which of the following is INCORRECT?

Options:

A.  

Individual directors cannot contract on behalf of the company unless they are authorized by the board.

B.  

The board is the agent of the company.

C.  

If the company has appointed a managing director, he or she is able to contract on behalf of the company.

D.  

The board is appointed to act as the agent of the shareholders.

Discussion 0
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