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

1. Which THREE of the following statements are correct in relation to the essential elements of a contract?

A) A revocation of an offer is only valid when it is received by the offeree, unless it is sent by post in which case it is valid as soon as it is posted
B) Once an offer has been made it does not exist forever but will lapse after a reasonable time
C) If an offer is rejected it can only be revived by the person who made the offer
D) A request for further information in relation to an offer has the effect of cancelling the offer
E) Even if the parties are fully in agreement, the agreement will be unenforceable unless at least one of the parties has provided consideration
F) A conditional offer cannot be accepted until the condition has been satisfied

2. A manufacturing company has a policy of only buying raw materials which are produced within a 100 kilometer radius of its factory. This is an example of what aspect of CSR?

A) Environmental impact reporting
B) Quality management
C) Brand management
D) Supply chain management

3. As stated in the CIMA Code of Ethics, the two key attributes of independence used in connection with the assurance engagement are:

A) Independence of mind and in belief
B) Independence of mind and in diligence
C) Independence of belief and in appearance
D) Independence of mind and in appearance

4. The IFAC has eight main drivers of sustainable corporate success. Which of the following are included in the eight mam drivers?
1, Innovation and adaptability
2. Effective leadership and strategy.
3. Board control and responsibility

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

5. Which of the following is correct in relation to loans to directors of a public company?

A) A public company which provides a loan to one of its directors commits a criminal offence unless the loan is approved by the shareholders
B) If a public company pays the debts of one of its directors on terms that the payment must be repaid by the director, the shareholders must approve the payment
C) A public company is not subject to any restrictions when making a loan to one of its directors
D) A public company cannot make loans to its directors

Solutions: