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

1. You are the manager of the finance function of a large engineering company According to IFAC's drivers of sustainable corporate success, which of the following would be a method by which you could improve the value of your department to the company?

A) Providing strategic leadership which sustains the maximization of short term value.
B) Providing sustainable ethical and strategic leadership which focuses on operating profit.
C) Providing ethical and strategic leadership which focuses on sustainable value creation.
D) Providing ethical leadership which focuses on minimizing environmental costs sustainably.

2. Which of the following governs all public sector employees?

A) The Seven Principles of Public Private Partnership
B) The Seven Principles of Public Sector Participation
C) The Seven Principles of Public Enterprise
D) The Seven Principles of Public Life

3. Evidence suggests that during a recession, companies with a clear sense of ethical direction will:

A) Be a poor investment
B) Lose business to unethical companies
C) Continue to be profitable
D) Be more expensive to run

4. lohn works as a management accountant for a law firm. He only got the job because he lied about his qualifications: he told the interviewers that he the required accountancy qualifications to do the job when he actually didn't.
Now John's boss has found that John lied during the interview. Which of the following will almost certainly happen as a result?
Select ALL that apply.

A) John will lose his job.
B) John will face criminal proceedings.
C) John will have problems finding new employment.
D) John will be expelled from the professional accountancy organisations he is a member of.
E) John will lose his employer's trust.
F) John will face civil proceedings.

5. Which of the following statements is incorrect?

A) A person cannot be bound by an onerous clause.
B) A person seeking to rely upon an onerous clause must show that he has taken sufficient steps to bring the clause to the other party's attention.
C) A person who signs a contract is deemed to have read it.
D) A person is assumed to know of a term of which he has been given reasonable notice at or before the time of the contract.

Solutions: