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

1. Which of the following is a 'financial stakeholder' of an organization?

A) Media
B) Competitor
C) Employee
D) Non-governmental organizations

2. After the Companies Act 2006, which of the following is correct in relation to a reduction of capital by a public company?
(i) If the reduction results in the company no longer having the authorized minimum capital for a public company, it may be necessary to re-register as a private company.
(ii) The Articles of Association may restrict the company's ability to reduce capital.
(iii) The reduction must be approved by the court.

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

3. An investigation has been launched against Company G, a supermarket, after suspicions were raised about its treatment of certain employees.
It was later found that Company G were guilty of direct discrimination.
Which of the following are the ways in which Company G were found to be directly discriminating?
Select ALL that apply.

A) Having a rule that no one under 5ft tall could be hired.
B) Making it company policy that no one over 65 could be hired.
C) Only offering pay rises to female employees if they were under a certain weight.
D) Rejecting job applications if the applicant had a foreign-sounding name.
E) Only offering senior managerial roles to male employees.

4. C is a professional accountant He encounters an ethical dilemma in his role and wishes to seek help in resolving it. Which of the following would NOT be an appropriate source of advice?

A) The internal whistle-blowing helpline
B) The external auditors.
C) The CIMA ethics helpline
D) Legal advisors.

5. Which of the following is correct?
(i) The provisions of the Memorandum of Association do not form a contract between the members and the company.
(ii) The provisions of the Articles of Association form a contract between the members and the company.
(iii) One member may sue another directly on the provisions in the Articles of Association which contain ordinary membership rights.

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

Solutions: