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BA4 Fundamentals of Ethics, Corporate Governance and Business Law is now Stable and With Pass Result | Test Your Knowledge for Free

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BA4 Practice Questions

Fundamentals of Ethics, Corporate Governance and Business Law

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Total Questions : 661

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Question # 81

B Ltd has an issued share capital of 1,000 ordinary £1 shares. The board of B Ltd has resolved to alter the company's articles of association. Which of the following is correct? 

(i) The articles may be altered by board resolution.

(ii) The articles may be altered by a written resolution of the shareholders.  

(iii) The articles may be altered by a special resolution of the directors.

Options:

A.  

(i) only

B.  

(ii) only

C.  

(iii) only

D.  

(ii) and (iii) only

Discussion 0
Question # 82

Which of the following identifies criminal as opposed to civil proceedings? 

Options:

A.  

The case was heard by the Supreme Court.

B.  

The case was proved beyond reasonable doubt.

C.  

The case was brought by a claimant.

D.  

The case resulted in an award of damages.

Discussion 0
Question # 83

The UK Corporate Governance Code is primarily directed at which type of business organization?

Options:

A.  

All limited liability business organizations

B.  

All business organizations

C.  

All private companies

D.  

All listed public companies

Discussion 0
Question # 84

Which of the following statements is incorrect in relation to the revised derivative action under section 260 of the Companies Act 2006? 

(i) The action may be brought by a single shareholder.

(ii) The action may be brought in relation to an act of negligence by the directors.

(iii) The action cannot be brought in respect of a proposed act by the directors.

Options:

A.  

(i) only

B.  

(ii) only

C.  

(iii) only

D.  

(ii) and (iii) only

Discussion 0
Question # 85

C sued D in the tort of negligence in order to recover compensation for injuries suffered as a result of D breaking his duty of care to

C.  

For what injuries can C claim compensation?

Options:

A.  

All reasonably foreseeable injuries caused by

D.  

B.  

All injuries caused by

D.  

C.  

All injuries which were a direct consequence of D's actions.

D.  

All physical but not psychiatric injuries caused by

D.  

Discussion 0
Question # 86

In relation to offers, which of the following statements is correct?

Options:

A.  

An offer to sell goods can be made to the whole world

B.  

Statements made in early negotiations cannot amount to offers.

C.  

Goods displayed on a supermarket shelf are deemed to be offers to sell

D.  

An item displayed in a shop window with a price tag is an offer to sell

Discussion 0
Question # 87

Wye Ltd has ordered goods from ABC plc and the directors of Wye Ltd have guaranteed that Wye Ltd will pay the agreed sum within one month of the delivery of the goods.

 

Which of the following is correct? 

(i) The contract is between Wye Ltd and ABC plc and the directors cannot be forced to pay the amount due in any circumstances.

(ii) A contract of guarantee is only enforceable if it is evidenced in writing.

(iii) The directors of Wye Ltd can be forced to honor the guarantee in the event of Wye Ltd not paying the amount due.

Options:

A.  

(i) only

B.  

(ii) only

C.  

(i) and (ii) only

D.  

(ii) and (iii) only

Discussion 0
Question # 88

Company X has a good CSR record, and ensures that its employees enjoy safe working conditions, reasonable work hours and are paid fairly Company Y is known to employ child laborers in the countries in which it operates, where the practice is not illegal Company X has entered into a point business partnership with Company Y to carry out a specific project. In order to comply with the OECD Guidelines, what best describes Company X's responsibilities?

Options:

A.  

Company X would only have a duty to try to stop Company Y from employing child labour if it was illegal in the countries concerned

B.  

Company X does not have any responsibilities, as its own record is good and it is not employing any children

C.  

It should ensure that it does not inadvertently use any of Company Y^s child workers in carrying out its own work on the project

D.  

It should attempt to persuade Company Y of its ethical responsibilities to stop employing children.

Discussion 0
Question # 89

Which ONE of the following statements is correct?

Options:

A.  

Just because everyone bends the rules in practice does not mean they should do so

B.  

Everyone bends the rules so it is good practice to do so for the benefit of clients

C.  

Just because there are rules does not mean they should be adhered to by everyone

D.  

Bending the rules is not the same as breaking them

Discussion 0
Question # 90

A business that behaves ethically may experience which of the following benefits; Select ALL that apply.

Options:

A.  

Little or no legal action

B.  

Improved reputation

C.  

Improved staff morale

D.  

Competitive advantage

E.  

Increased market penetration

F.  

Higher productivity levels

G.  

Increased profits

Discussion 0
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