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

1. Being able to be trusted by others to be dependable reflects the personal quality identified by the CIMA Code of Ethics as:

A) Respect
B) Reliability
C) Traditionalism
D) Transparency

2. Danny holds 1%, Edward 2% and Fozia 3% of the issued share capital of Vee Ltd. Which of these shareholders, acting alone or together, hold the minimum percentage to entitle them to require the company to circulate a written statement of their views to all those entitled to receive notice of the forthcoming annual general meeting?

A) Danny and Fozia.
B) Danny and Edward.
C) Fozia alone.
D) Edward and Fozia.

3. Which THREE of the following represent the impact of one of the seven principles of public life on accountants?
When awarding contracts accountants should ensure that this is based upon objective measures of comparative merit.

A) Accountants should act solely in the public interest and should therefore not make a profit from their professional advice to clients.
B) Accountants should avoid any conflicts of interest in their professional conduct
C) Accountants should be publicly open about the reasons for their decisions within the companies they work for.
D) Accountants should ensure that they only restrict information about their clients when the public interest so demands it
E) Accountants should promote and support the seven principles in public life through leadership and example.

4. Zed plc wishes to issue £500,000 of shares on terms that the holders will receive a dividend before the other shareholders and they will be bought back by the company in 12 months' time. Which of the following best describes these shares?

A) Redeemable preference shares
B) Redeemable ordinary shares
C) Ordinary shares
D) Preference shares

5. Which of the following is an advantage of carrying on a business through the medium of a private company limited by shares?

A) The fact that business can be carried on with a minimum of two directors
B) The ability to carry on business without holding an annual general meeting
C) The ability to keep the articles of association private
D) The fact that business can be earned on with a minimum of one company secretary.

Solutions: