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Only need to practice for 20 to 30 hours

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

1. Which of the following is a 'financial stakeholder' of an organization?

A) Competitor
B) Media
C) Non-governmental organizations
D) Employee

2. S is management accountant for a small retail company. The company's financial year is due to end in a few weeks. The company is making losses and S is concerned that it may become short of funds in the next few months. The Finance Director has told S that the Board is aware of the problem, so no further action is required from S.
Which ONE of the following would it be appropriate for S to do?

A) Ask for confirmation in writing from the director
B) Do as requested
C) Ask for advice from the company's external auditors
D) Bring the matter to the attention of the Managing Director
E) Challenge the request

3. Which of the following is CORRECT?
(i) A company limited by shares is a legal person separate and distinct from those who own and manage the company (ii) If the company structure is used as a mere facade for fraudulent purposes the company but not the directors or shareholders can be held liable (iii) If the company has carried on business despite the fact that insolvency appeared inevitable the directors may be personally liable for the debts contracted.

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

4. Rank the following, starting with the highest court:
(i) Court of Appeal (Civil)
(ii) Supreme Court
(iii) County Court
(iv) High Court

A) (i), (ii), (iv), (iii)
B) (ii), (i), (iv), (iii)
C) (ii), (iv), (i), (iii)
D) (i), (ii), (iii), (v)

5. Which of the following is correct?
(i) The first directors are appointed upon the incorporation of the company.
(ii) A director is a person who occupies the position of director by whatever name called.
(iii) A shadow director is a person in accordance with whose directions or instructions the directors of the company are accustomed to act.

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

Solutions: