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

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

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

2. What, according to CarlyFiorina, CEO of Hewlett Packard, is the spirit of a code of ethics:

A) "It is doing the right thing when no-one is watching"
B) "It is doing the right thing because everybody is watching"
C) "It is doing the right thing because you have to"
D) "It is doing the right thing, because it's for the best"

3. Articles of association regulate the relationship between:

A) the company and its directors
B) the company and its creditors
C) the company and its members
D) the company and its customers

4. What is the legal meaning of the word "simple" in the expression "valid simple contract"?

A) The contract has no implied term
B) There are 5 or fewer parties to the contract
C) The consideration for the contract is less than £5,000
D) The contract does not have to be in any particular form

5. What is the public function of all accountants?

A) To give financial judgments to owners and shareholders
B) To represent the life-cycle of accounts
C) To do a job and go home
D) To provide truthful and independent accounts of finances

Solutions: