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

1. Being straightforward and honest in all professional and business relationships demonstrates the CIMA Code of Ethics fundamental principle of:

A) Integrity
B) Confidentiality
C) Objectivity
D) Transparency

2. Which of the following does NOT describe the responsibilities of the audit committee?

A) The review of the company's financial statements and any interim reports produced. The review of the company's systems of internal controls. The review of the audit report and any management letter provided by the external auditor
B) The review of the company's financial statements and any interim reports produced. The review of the structure, size and composition of the board. The review of the company's internal control and risk management system
C) The discussion with auditors on any significant matters that arose during the audit. The recommendations on the appointment and removal of auditors. The setting of the audit fee in discussion with the auditors.
D) The review of the internal audit programme and significant findings of the auditors. The review of the company's systems of internal control. The review of the company's system to facilitate whistle blowing

3. Which of the following is correct?

A) A fixed charge is a charge over a specific asset of the company which it is unable to deal with freely in the ordinary course of business.
B) A fixed charge is a charge over a class of company assets which the company is unable to deal with freely in the ordinary course of business.
C) A fixed charge is a charge over a class of company assets which the company can deal with freely in the ordinary course of business.
D) A fixed charge is a charge over a specific asset of the company which it is able to deal with freely in the ordinary course of business.

4. Which of the following statements is correct?
(i) An employer may rely on information discovered after an employee's dismissal to justify a wrongful dismissal.
(ii) An employer may rely on information discovered after an employee's dismissal to justify an unfair dismissal.
(iii) An employment tribunal will take into account the employee's conduct when determining how much compensation for unfair dismissal to award.

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

5. Which of the following is not a legal person?

A) A public limited company.
B) A sole trader.
C) A private limited company.
D) A firm of accountants.

Solutions: