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CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
1. Which ONE of the following is needed to solve ethical problems?
A) Motivation to do what is personally satisfying
B) Motivation to do what is right
C) Motivation to come to a decision as quickly as possible
D) Motivation to help others
2. Zed Bank plc has agreed to allow Exe Ltd an overdraft of £50,000 subject to a fixed and floating charge over almost all of the company's assets. In addition, the directors of Exe Ltd have been required to personally guarantee the overdraft.
Which of the following is correct?
(i) The directors could face bankruptcy if they are called upon to honour the guarantee.
(ii) In this case the directors do not enjoy limited liability as they are liable on the guarantee if the company cannot pay.
(iii) The directors could only be required to honor the guarantee if the company's assets proved insufficient to meet the overdraft.
A) (i) and (ii) only
B) (i) only
C) (i), (ii) and (iii)
D) (iii) only
3. Which TWO of the following are the characteristics of a framework driven by values, principles and ethics?
A) Implicit
B) Mandatory
C) Discretionary
D) Detection
4. You work for an oil company and your company is negotiating a contract with the government of another country. During the course of the negotiations, your managing director has run up a very substantial expenses bill for entertaining personnel from the country's government. This scenario suggests which TWO of the following ethical issues?
A) Harassment
B) Bribery and corruption
C) Data protection
D) Gifts and hospitality
5. Terry and Taylor are music producers in the UK who have decided to go into business together. They set up their partnership as an LLP and call itjammin' Records. Unfortunately their company quickly fails due to having large debts.
Who is liable for these debts?
A) Taylor
B) Jammin' Records
C) Terry
D) Terry and Taylor
E) Terry, Taylor and Jammin' Records
F) No one
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: A,C | Question # 4 Answer: B,D | Question # 5 Answer: B |
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