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Total 661 questions

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

Question 37

You are the manager of the finance function of a large engineering company According to IFAC's drivers of sustainable corporate success, which of the following would be a method by which you could improve the value of your department to the company?

Options:

A.

Providing ethical leadership which focuses on minimizing environmental costs sustainably.

B.

Providing ethical and strategic leadership which focuses on sustainable value creation.

C.

Providing strategic leadership which sustains the maximization of short term value.

D.

Providing sustainable ethical and strategic leadership which focuses on operating profit.

Question 38

The CIMA Code of Ethics relates to:

Options:

A.

Professional accountants in public practice and business

B.

Professional accountants in public practice only

C.

Professional accountants in business only

D.

Professional accountants in the third sector only

Question 39

Kane is a management accountant for business in the City. When looking through the company's latest financial reports he finds that company has been paying far less tax than it should be.

After consulting the company's management, Kane discovers that the company had been deliberately paying less tax and are not interested in taking action to rectify it.

As Kane has done all he can to try and solve the issue himself, it's clear that he now needs to take steps to disassociate himself from the misleading information.

How might he do this?

Select ALL that apply.

Options:

A.

Resign from the company.

B.

Consider getting legal advice.

C.

Determine whether he should report the issue.

D.

Destroy all documents that contain information regarding the company's tax avoidance.

E.

Manipulate the company's accounts so that the right amount of tax is paid.

Question 40

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

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Total 661 questions