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

1. According to the CIMA Code of Ethics, which of the following categories describe common threats to compliance with the fundamental principles? Please select all that apply.

A) Self-review threats
B) Familiarity threats
C) Self-interest threats
D) Intimidation threats

2. Which of the following is INCORRECT in relation to the European Commission?

A) The Commission represents the European Union in any trade negotiations with states which are not members of the European Union.
B) The Commission has a duty to ensure the treaties and law are upheld, potentially by taking Member States or other institutions to the European Court of Justice.
C) The Commission is the executive arm of the European Union.
D) The Commission is made of independent Commissioners whose role is to further the interests of the Member States which they represent.

3. In relation to business names which of the following is CORRECT?
(i) Any business may trade under a business name.
(ii) If a business name is used the name of the owner of the business must be disclosed.
(iii) The business name of a private limited company must end with the word "Limited" or "Ltd".

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

4. B is employed by Zed plc and has suffered an occupational injury.
Which of the following is correct?
Zed plc may be liable to B for:
i. breach of an implied term in B's contract of employment
ii. breach of the duty to take care in the tort of negligence
iii. breach of statutory duty

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

5. Which of the following is presumed not to be intended to create legal relations?

A) A social arrangement.
B) A contract between father and son.
C) A commercial transaction.
D) An agreement by Exe Ltd to make a gift to Wye Ltd.

Solutions: