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

1. In the event of the directors of a company limited by shares ignoring a provision in its Articles of Association which is for the benefit of the shareholders, which of the following is correct?

A) Individual shareholders may sue the directors for breach of contract.
B) Any or all of the shareholders may sue the company for breach of contract.
C) The shareholders as a whole may sue the directors for breach of contract.
D) Individual shareholders have no remedy against the company.

2. In relation to international regulations, which of the following is correct?
i. International regulations seek to establish common standards between professions practicing in different States so as to further international cooperation and agreement.
ii. International regulations agreed by the professional bodies of different States have the force of international law.
iii. International regulations which harmonies standards and procedures may be incorporated into contracts by commerce and the professions.

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

3. As a general rule, what period of continuous employment is required before a person can make a claim for unfair dismissal?

A) at least 3 years
B) at least 6 months
C) at least 9 months
D) at least 2 years

4. In the UK, the body responsible for establishing standards and related guidance for accountants providing assurance services is:

A) The Professional Oversight Board for Accountancy
B) The International Federation of Accountants
C) The Financial Reporting Council
D) The Auditing Practices Board

5. According to the CIMA code of ethics, if appropriate safeguards cannot be identified to address threats to compliance with fundamental principles, a professional accountant should:

A) Identify the situation to superiors before continuing with the professional service involved
B) Proceed with necessary caution
C) Proceed unless the situation will involve breaking the law
D) Refuse to remain associated with the matter creating the conflict, where possible

Solutions: