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CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
1. In relation to registering a company limited by shares, which of the following is correct?
A) If the promoters fail to submit Articles of Association to the Registrar of Companies, the company will be registered but will have no Articles of Association applicable to it.
B) If the promoters fail to submit Articles of Association to the Registrar of Companies, the company cannot be registered.
C) If the promoters fail to submit Articles of Association to the Registrar of Companies, the documents will be returned to the promoters with a request for Articles to be submitted.
D) If the promoters fail to submit Articles of Association to the Registrar of Companies, the provisions of Table A automatically apply.
2. Brian is the registered owner of 500 shares in Exe Ltd. Which of the following statements is correct?
A) Brian is only contractually bound to Exe Ltd and the present directors in respect of the provisions contained within the company's Articles of Association.
B) Brian is only contractually bound to Exe Ltd and the other present shareholders of the company in respect of the provisions contained in the company's Articles of Association.
C) Brian is contractually bound to Exe Ltd and the present and future shareholders in respect of the provisions contained within the company's Articles of Association.
D) Brian is only contractually bound to Exe Ltd in respect of the provisions contained in the company's Articles of Association.
3. You work for a company that designs and manufactures children's toys. Which of the following is NOT an example of social responsibility that your company might choose to address?
A) The use of chemicals in manufacturing
B) Whether the recommended retail price of a particular product provides sufficient margin after the unit cost of production is taken into account
C) The environmental impact of transporting toys from the country of manufacture to the country of sale
D) The welfare of workers who assemble the company's products
4. Which of the following are fundamental characteristics of useful information? Select ALL that apply.
A) Understandability
B) Faithful representation
C) Verifiability
D) Comparability
E) Relevance
F) Timeliness
5. In the event of a conflict between European Law and French Law which will prevail?
A) French private law
B) French public law
C) European law
D) The French Code Civile
Solutions:
Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: B,E | Question # 5 Answer: C |