New Year Special 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: save70

CIMA BA4 Online Access

Page: 3 / 25
Total 661 questions

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

Question 9

You work for an accountancy firm and discover that a member of an assurance team has a significant conflict of interest. You take CIMA's Code of Ethics with you when you alert your board of directors as to why this is an important issue, but the board decides that the conflict of interest is not important. This is an example of tension between:

Options:

A.

Corporate and professional values

B.

Corporate and societal values

C.

Societal and personal values

D.

All of the above

Question 10

Exe Ltd was registered in 1980 and has an objects clause in its Memorandum of Association. What is the current status of Exe Ltd's objects clause?

Options:

A.

The objects clause will be treated as if it remains in the Memorandum of Association.

B.

The objects clause will be treated as if it is a provision in the Articles of Association.

C.

Exe Ltd will be treated as if it has no objects clause.

D.

The objects clause will be treated as if it only applies to Exe Ltd's directors.

Question 11

Wye has borrowed £10,000 from Exe and the loan has now become repayable in full.  Exe has received a cheque from Wye for £9,000 stated to be “in full and final settlement of the loan.” What is the position if Exe cashes the cheque?

(i) Exe will have accepted £9,000 in full and final settlement and will not be able to claim the other £1,000 from Wye.

(ii) Exe is legally entitled to cash the cheque and pursue Wye for the balance of £1,000.

(iii) Exe will have accepted £9,000, but at law payment of less than the amount due cannot satisfy the full debt. 

Options:

A.

(i) only

B.

(ii) only

C.

(iii) only

D.

(ii) and (iii) only

Question 12

The UK Corporate Governance Code is primarily directed at which type of business organization?

Options:

A.

All limited liability business organizations

B.

All business organizations

C.

All private companies

D.

All listed public companies

Page: 3 / 25
Total 661 questions