CIMA BA4 : Fundamentals of Ethics - Corporate Governance and Business Law

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

1. Which of the following requires the approval of a simple majority of all the company's shareholders who are entitled to vote?

A) A written special resolution
B) An ordinary resolution
C) A written ordinary resolution
D) A special resolution

2. Who is entitled to sue the directors for a breach of statutory duty?

A) The holders of the majority of the company's shares.
B) Any shareholder.
C) The company.
D) The board.

3. 'Remuneration' is one of the main principles in the Corporate Governance Code. Which of the following is NOT best practice under the 'Remuneration' principle?

A) The board of directors are able to set the remuneration of non-executive directors
B) Remuneration should be sufficient to attract, retain and motivate directors of the quality required to run the company successfully, but should not be excessive
C) Remuneration should be structured in order to link a significant proportion of the rewards to corporate and individual performance
D) There should be a formal and transparent procedure for developing policy on executive remuneration

4. Which of the following is NOT one of the 'seven principles of public life', as defined by the Committee of Standards in Public Life?

A) Objectivity
B) Integrity
C) Leadership
D) Learning

5. Jo is employed as management accountant of a large retailer. Jo has been asked to call a supplier and promise settlement of their account 'next week'. Jo is aware that her employer will definitely not have sufficient funds available to make the payment. If Jo accepts the request, which of the following
'fundamental principles' of CIMA's Code of Ethics will be compromised?

A) Confidentiality
B) Professional behavior
C) Objectivity
D) Integrity

Solutions: