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

1. Which of the following statements suggests that A is an employee in relation to the work he carries out for BCD Ltd?
i. He is required to provide his own tools.
ii. He is required to carry out his work personally and is not free to send a substitute.
iii. He is in receipt of pay after income tax has been deducted under PAYE.

A) (i) and (iii) only
B) (i) and (ii) only
C) (i), (ii) and (iii)
D) (ii) and (iii) only

2. Which of the following are the TWO main differences between the structure and function of company boards in Germany and the UK?

A) In Germany, the board reports on corporate governance issues, whereas in the UK it does not.
B) In Germany, employees are usually represented on the board, whereas in the UK they are not.
C) In Germany, boards often have a two-tier structure, wheras in the UK they are normally unitary.
D) In Germany, boards are responsible for both management and governance, whereas in the UK they are responsible only for one or the other.

3. Completing work within established deadlines reflects the personal quality identified by the CIMA Code of Ethics as:

A) Responsibility
B) Tardiness
C) Timeliness
D) Accuracy

4. Tee Ltd has contracted to use Vee Ltd's "Grand Hotel" for a business conference. Which of the following would not be regarded as a valid excuse for Vee Ltd for the unavailability of the hotel on the agreed date?
(i) The hotel was closed due to flood damage.
(ii) The hotel was double booked.
(iii) The hotel manager had arranged to have the hotel redecorated; the decorators had failed to complete the work by the agreed date.

A) (i), (ii) and (iii)
B) (iii) only
C) (i) only
D) (ii) and (iii) only

5. Which of the following is correct?

A) A fixed charge is a charge over a class of company assets which the company is unable to deal with freely in the ordinary course of business.
B) A fixed charge is a charge over a specific asset of the company which it is unable to deal with freely in the ordinary course of business.
C) A fixed charge is a charge over a class of company assets which the company can deal with freely in the ordinary course of business.
D) A fixed charge is a charge over a specific asset of the company which it is able to deal with freely in the ordinary course of business.

Solutions: