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

1. Which of the following is incorrect in relation to equitable remedies?

A) A person seeking an equitable remedy must act within a reasonable time.
B) A person cannot obtain an equitable remedy if the common law remedy of damages is adequate.
C) A person who requests an equitable remedy must have acted equitably himself.
D) Equitable remedies are available as of right.

2. Which of the following statements refer to the Sarbanes-Oxley Act?

A) Only applies to the US
B) Established in 1992
C) Rules-based approach
D) Known as Sarbox or SOX
E) Adherence is not compulsory

3. S is assistant management accountant for a large telecommunications company. S has become aware that the company is offering different levels of discount to different corporate customers. S is concerned that this is unethical, so she mentioned it to the Finance Director during her most recent appraisal. The Director seemed amused at S's concern, and said that such a situation was 'perfectly normal'.
Which ONE of the following would it be appropriate for S to do?

A) Ask for confirmation in writing from the Director
B) Nothing further
C) Request a further meeting with the Finance Director
D) Ask for advice from the company's external auditors
E) Bring the matter to the attention of the Managing Director
F) Resign

4. Which of the following may be liable to contribute to the assets of the company in the event of the company carrying on business at a time when it appeared that insolvency was inevitable?

A) The current directors of the company.
B) The current directors and former shareholders of the company.
C) The current and former directors of the company.
D) The current directors and shareholders of the company.

5. Which of the following are TWO reasons why new legislation might be introduced in response to corporate scandals?

A) To prevent this type of unethical behavior by making it illegal
B) To encourage companies to make their own decisions about ethical matters
C) To punish individuals for adhering to codes of ethics
D) To enforce minimum standards of behavior

Solutions: