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CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
1. While working as an accountant, you are asked to overlook certain irregularities in your company's accounts. This is likely to result in tensions described by which TWO of the following four options:
A) Personal and corporate values
B) Professional and corporate values
C) Professional and societal values
D) Personal and societal values
2. Which of the following is NOT an advantage of establishing a company by purchasing "off the shelf"?
(i) The company is already registered so that in general business may be commenced more quickly.
(ii) The purchase off the shelf company can be cheaper than registration of a new company.
(iii) The articles of association are tailor-made to the requirements of the purchaser.
A) (i) and (ii) only
B) (iii) only
C) (ii) and (iii) only
D) (i) only
3. Articles of association regulate the relationship between:
A) the company and its creditors
B) the company and its members
C) the company and its customers
D) the company and its directors
4. Which of the following terms can be defined as follows?
"How an organization manages its relationships in the wider community"
A) Ethics
B) Social responsibility
C) Corporate governance
D) Professional behavior
5. Which of the following is correct?
i. In general a company can use its share capital for any reason whatsoever, as long as it ensures that there is sufficient remaining to meet the company's debts.
ii. A company must use its capital for lawful purposes.
iii. In general, a company cannot return its share capital to its members.
A) (i) and (ii) only
B) (ii) only
C) (ii) and (iii) only
D) (i) only
Solutions:
| Question # 1 Answer: A,B | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: C |




