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BA4 Exam Dumps : Fundamentals of Ethics - Corporate Governance and Business Law

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Fundamentals of Ethics - Corporate Governance and Business Law Questions and Answers

Question 1

Which of the following contracts might be specifically enforceable?

Options:

A.

A has contracted to sell his house to B but has changed his mind and no longer wishes to sell it.

B.

C has contracted to buy a new Ford motor car but the garage is now refusing to honor the contract.

C.

D has contracted to purchase a number of tins of fruit for her business but the seller has now stated that he no longer wishes to proceed with the contract.

D.

E has contracted to sing at a concert organized by F, but E has withdrawn as he has received a more lucrative offer from G.

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Question 2

R, S and T are the only shareholders in RST Ltd each holding 5,000 ordinary £1 shares. R is the only director of the company. The articles of association of RST contain the following provisions:

1. R is to be a director of RST Ltd for life.

2. In the event of any resolution to dismiss R by ordinary resolution his votes shall count three times.

Which of the following is CORRECT?

(i) Provision 1 is void as a director cannot be appointed for a period exceeding 3 years.

(ii) Provision 2 is valid and R may outvote any proposed resolution to dismiss him.

(iii) Provisions 1 and 2 are both unenforceable by R as they are not ordinary membership rights.

Options:

A.

(i) only

B.

(ii) only

C.

(iii) only

D.

(i) and (iii) only

Question 3

Which of the following must an internal audit satisfy in order to be deemed independent? Select ALL that apply.

Options:

A.

The head of the audit must report to a high level within the organisation.

B.

The internal audit activity must be free from interference.

C.

The head of the internal audit must communicate and interact directly with the board of directors.

D.

Any problems identified during the audit should be reported.

E.

Action plans should be negotiated with management in order to address any identified problems.