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Fundamentals of Ethics, Corporate Governance and Business Law Practice Test

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CIMA
CIMAPRA17-BA4-1-ENG
Fundamentals of Ethics, Corporate Governance and Business
Law
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Question: 89
Miss B is working closely with Mr L to deliver an important report on the efficiency of Mr L�s department. They have
had to work late together several times, and last night they went out to dinner afterwards. Miss B is starting to think
she may have feelings for Mr L.
Could her independence be called into question?
A . Yes, her feelings could be influencing her independence of mind
B . No, she is not actually dating Mr L so her independence of appearance is not compromised
C . No, provided she does not act on her feelings and continues to be professional
D . Yes, having dinner with a work colleague can affect her independence of appearance
Answer: A
Question: 90
ABC Accountants has taken out an advert in its local paper to promote its services. Mr B, an account manager, is
uncomfortable, as the advert says that ABC is expert in charitable tax issues, and he knows that none of the partners
have that expertise. However, Mr B does not want to be thought of as a �trouble maker� by bringing the matter up with
his manager.
Which TWO things should Mr B do?
A . Seek guidance from CIMA�s Code of Ethics
B . Seek guidance from his line-manager
C . Do nothing
D . Speak to the local paper
Answer: A,B
Question: 91
What can companies do in order to minimize the likelihood of future legislation?
A . Maintain effective self regulation
B . Insist on the highest standards of ethical behavior from their company and its employees
C . Understand and address what the public expects of companies in terms of ethical
behavior and social responsibilities
D . All of the above
Answer: D
Question: 92
Completing work within established deadlines reflects the personal quality identified by the CIMA Code of Ethics as:
A . Responsibility
B . Accuracy
C . Timeliness
D . Tardiness
Answer: C
Question: 93
Which of the following statements are correct?
(i) A claim for unfair dismissal must be made to an industrial tribunal within 3 months of the effective date of
termination.
(ii) A claim for wrongful dismissal must be made to an industrial tribunal within 6 years of the effective date of
termination.
(iii) A claim for wrongful dismissal must be made to an industrial tribunal within 3 months of the effective date of
termination.
A . (i) and (ii)
B . (i)
C . (ii)
D . (i) and (iii)
Answer: A
Question: 94
Which of the following statements is incorrect?
(i) A term may be implied into a contract on the basis of previous dealings between the parties.
(ii) A term may be implied into a contract by statute.
(iii) A term may be implied into a contract by a court where it would be reasonable to imply it.
A . (i) only
B . (i) and (ii) only
C . (ii) only
D . (iii) only
Answer: D
Question: 95
In which country are accountants legally required to speak up about certain ethical concerns?
A . United Kingdom
B . Italy
C . United States of America
D . China
Answer: C
Question: 96
Although no-one has reason to suspect, you have taken a violent dislike to a particular assurance client.
This could severely affect your independence:
A . Of belief
B . In appearance
C . Of mind
D . In competence
Answer: C
Question: 97
Which of the following is incorrect?
A . All courts below the Supreme Court may refer a case involving European Law to the European Court of Justice for
a preliminary ruling.
B . Supreme Court must refer a case involving European Law to the European Court of Justice for a preliminary
ruling.
C . An English court is not bound to provide effect to a preliminary ruling of the European Court of Justice.
D . A preliminary ruling of the European Court of Justice is sent back to the Court which referred the question and
must be given effect by that court.
Answer: C
Question: 98
AB Ltd contracted to deliver two desks and three filing cabinets to CD Ltd. On the day when delivery was due to take
place AB Ltd did not have a vehicle with sufficient capacity to hold all the goods. As a result AB Ltd delivered the
two desks only
Which of the following is correct?
A . The contract between AB Ltd and CD Ltd is frustrated.
B . CD Ltd is legally entitled to refuse delivery of the desks
C . The failure to deliver the filing cabinets is a breach of a warranty which entitles CD Ltd to claim damages
D . The delivery of the desks amounts to substantial performance of the contract and CD Ltd is obliged to pay the
contract price less an amount for the defects in performance
Answer: B
Question: 99
While working as an accountant, you are asked to overlook certain irregularities in your company�s accounts.
This is likely to result in tensions described by which TWO of the following four options:
A . Personal and societal values
B . Personal and corporate values
C . Professional and corporate values
D . Professional and societal values
Answer: B,C
Question: 100
Which of the following terms can be defined as follows?
"�the way an organization manages its relationships"
A . Ethics
B . Social responsibility
C . Corporate governance
D . Professional behavior
Answer: B
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