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

1. Which of the following statements is incorrect in relation to a public company limited by shares?

A) The company must have at least one shareholder.
B) The company must have issued at least £50,000 of shares.
C) The company must ensure that its company secretary is properly qualified whereas a private company need not have a company secretary.
D) The company must have at least one director.

2. Which ONE of the following is NOT a personal consequence of unethical behavior?

A) Loss of life
B) Loss of reputation
C) Loss of job
D) Loss of earnings

3. In relation to the company secretary which of the following is correct?
(i) A public company must have a company secretary who is appropriately qualified (ii) A member of CIMA is qualified to act as a company secretary (iii) A private company may choose to have a company secretary and if so he/she must be appropriately qualified

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

4. C is a professional accountant He encounters an ethical dilemma in his role and wishes to seek help in resolving it. Which of the following would NOT be an appropriate source of advice?

A) Legal advisors.
B) The CIMA ethics helpline
C) The internal whistle-blowing helpline
D) The external auditors.

5. Which TWO of the following are reasons why a company would choose to introduce a values based code of ethics?

A) To identify gifted staff
B) To provide guidance for staff
C) To help staff to tackle the ethical dilemmas that they might face at work
D) To improve the cost efficiency of internal processes

Solutions: