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

1. Which of the following does the IFAC Code of Ethics establish?

A) Legal requirements for professional accountants
B) Judicial requirements for professional accountants
C) Standards of commitment for professional accountants
D) Standards of behavior for professional accountants

2. Which of the following statements apply to multinational corporations? Select ALL that apply.

A) The company's investors will find it difficult to interpret and compare results.
B) Financial statements will need to be prepared in different ways in different countries.
C) Administrative burden and compliance costs will be reduced.
D) Assessment of other companies will be easier to do.
E) Expanding into new markets will be more difficult due to potential bureaucracy.

3. Which of the following describes a principles-based approach to ethical standards in an organisation?
The objective behind the approach is to:

A) detect ethical non-compliance It focuses on the development of discipline and obedience and its standards are explicit
B) detect ethical non-compliance It motivates through fear and its standards are implicit
C) prevent ethical non-compliance It focuses on the development and application of individual judgment and standards are implicit
D) prevent ethical non-compliance It motivates through values and its standards are explicit

4. Which of the following statements are correct in relation to a misrepresentation?
1. A misrepresentation is a false statement of fact or law but not a mere expression of opinion by someone having no expertise in the subject matter of the contract
2. A misrepresentation renders a contract voidable
3. As a general rule silence can amount to a misrepresentation.

A) 1 only
B) 1 and 2 only
C) 2 and 3 only
D) 2 only

5. If a claim for unfair dismissal is successful, which of the following orders can be made by an employment tribunal?
i. re-instatement
ii. re-engagement
iii. compensation

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

Solutions: