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

1. Which of the 'fundamental principles' of CIMA's Code of Ethics is defined as follows?
"A professional accountant should not allow bias, conflict of interest or undue influence of others to override professional or business judgments"

A) Professional behavior
B) Objectivity
C) Integrity
D) Professional competence and due care

2. Which of the following terms can be defined as follows?
"...the system by which companies are directed and controlled"

A) Corporate governance
B) Professional behavior
C) Ethics
D) Social responsibility

3. Which of the following destroys the original offer and puts another in its place?

A) A request for further information.
B) A revocation.
C) An acceptance.
D) A counter offer.

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

5. What has been the root of the majority of recent corporate scandals?

A) Misapplication or ignoring of regulations
B) Misapplication or ignoring of accounting principles
C) Misapplication or ignoring of ethical values
D) Misapplication or ignoring of human rights

Solutions: