Fundamentals of Ethics - Corporate Governance and Business Law pdf study material

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

1. Which of the 'fundamental principles' of CIMA's Code of Ethics is defined as follows?
"A professional accountant should comply with relevant laws and regulations and should avoid any action that discredits the profession"

A) Integrity
B) Objectivity
C) Professional competence and due care
D) Professional behavior

2. B is a director and shareholder in Cee Ltd. Which ONE of the following is INCORRECT?

A) The company must be given 28 days notice of any proposed resolution to dismiss B.
B) B is entitled to speak at the meeting called to consider the proposal to dismiss him.
C) B cannot vote as a shareholder in any meeting called to dismiss him as a director.
D) B may be dismissed at any time by an ordinary resolution of the shareholders.

3. Which of the following is CORRECT in relation to an alteration of a company's articles of association?
(i) A copy of the resolution and the amended articles must be filed with the Registrar of Companies within 15 days of the date of the resolution.
(ii) The articles of association may be amended by an ordinary resolution with special notice.
(iii) An alteration of the articles cannot discriminate between the majority and minority shareholders.

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

4. Which of the following is NOT an essential element of a valid simple contract?

A) Consideration.
B) Agreement.
C) Intention to create legal relations.
D) Written terms.

5. Which of the following is INCORRECT in relation to the UK Corporate Governance Code?

A) No director should be involved in deciding his or her own remuneration.
B) The board should be made up of a majority of non-executive directors.
C) All UK companies quoted on the London Stock Exchange have to include a statement of how the company has complied with the main principles set out in the Code.
D) There should be a clear division of responsibilities between the Chairman and the Chief Executive.

Solutions: