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

1. Which one of the following reasons is not automatically an unfair reason for dismissal?

A) Contravention of a statute.
B) An employee's gross misconduct.
C) An employee's pregnancy.
D) Lack of qualification.

2. Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?

A) Professional consideration and due care
B) Professional conscience and due care
C) Professional competence and due care
D) Professional cooperation and due care

3. Charles is one of the three directors of Cee Ltd. The company has recently agreed to purchase Charles' house at its market value of £250,000. Which of the following is correct?

A) Charles is not entitled to vote as a shareholder to approve the purchase.
B) Charles need not formally disclose his interest as he is in a minority on the board.
C) The purchase must be approved by the shareholders passing an ordinary resolution.
D) The purchase is unlawful as a company cannot contract with one of its own directors.

4. Which of the following statements apply to multinational corporations? Select ALL that apply.

A) Financial statements will need to be prepared in different ways in different countries.
B) The company's investors will find it difficult to interpret and compare results.
C) Expanding into new markets will be more difficult due to potential bureaucracy.
D) Administrative burden and compliance costs will be reduced.
E) Assessment of other companies will be easier to do.

5. Ethical dilemmas may be raised with a professional accountant via which of the following routes?

A) All of the above
B) Anonymously
C) Via an in-house helpline
D) Via an external customer

Solutions: