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

1. The distinction between an employee and an independent contractor is important because only an employee:
i. is given statutory protection in relation to employment rights.
ii. is subject to the deduction of income tax and national insurance under the PAYE system.
iii. can make the employer vicariously liable for his/her torts.

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

2. Your boss knows that you will always strive to deliver a project on time and on budget. Which TWO of the personal qualities identified by the CIMA Code of Ethics does this demonstrate?

A) Reliability
B) Courtesy
C) Timeliness
D) Respect

3. In assessing a compensation award for unfair dismissal, which of the following is incorrect?

A) A compensatory award may additionally be made.
B) A basic award is calculated related to the alleged employee's conduct and circumstances of the case.
C) Any award is subject to the statutory minimum sum identified.
D) The award may be reduced if the employee's conduct contributed to the dismissal.

4. Which of the following is presumed to be intended to create legal relations?

A) A commercial transaction.
B) A social arrangement.
C) A promise by a father to make a gift to his son.
D) A domestic arrangement.

5. What is the public function of all accountants?

A) To provide truthful and independent accounts of finances
B) To give financial judgments to owners and shareholders
C) To do a job and go home
D) To represent the life-cycle of accounts

Solutions: