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

1. You work for an oil company and your company is negotiating a contract with the government of another country. During the course of the negotiations, your managing director has run up a very substantial expenses bill for entertaining personnel from the country's government. This scenario suggests which TWO of the following ethical issues?

A) Gifts and hospitality
B) Harassment
C) Bribery and corruption
D) Data protection

2. Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?

A) Professional competence and due care
B) Professional conscience and due care
C) Professional cooperation and due care
D) Professional consideration and due care

3. X owns 51% of the shares in X Ltd. Y and Z are the only directors of X Ltd. Which ONE of the following is CORRECT?

A) X can give directions to Y and Z by passing ordinary resolutions ordering them to comply with his wishes
B) X can use his votes to amend the articles and impose new obligations on Y and Z
C) X can force Y and Z to declare a dividend
D) X can dismiss Y and Z for any reason by using his majority vote

4. Which of the following statements is correct?
(i) As a general rule the acceptance of an offer is only effective when it has been communicated to the offeror.
(ii) A person must know of an offer before he or she can accept it.
(iii) A request for further information has the effect of destroying the original offer.

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

5. Company B wants to implement ethical control over its staff. It wants to do this by implementing a strong organisational culture.
Which of the following are ways in which the organisation could exercise control in regards to its organisational culture?
Select ALL that apply.

A) Ensure the company's ethical expectations are thoroughly communicated.
B) Ensure that the company's chairman and CEO lead by example.
C) Introduce a statement of values which outlines what the organisation stands for.
D) Only employ directors who have proven strong moral values.
E) Ensure that disciplinary action is taken when the company's ethical code is broken.
F) Ensure that the company's organisational systems encourage adherence to its ethics.

Solutions: