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Fundamentals of Ethics, Corporate Governance and Business Law

Last Update 5 hours ago Total Questions : 661

The Fundamentals of Ethics, Corporate Governance and Business Law content is now fully updated, with all current exam questions added 5 hours ago. Deciding to include BA4 practice exam questions in your study plan goes far beyond basic test preparation.

You'll find that our BA4 exam questions frequently feature detailed scenarios and practical problem-solving exercises that directly mirror industry challenges. Engaging with these BA4 sample sets allows you to effectively manage your time and pace yourself, giving you the ability to finish any Fundamentals of Ethics, Corporate Governance and Business Law practice test comfortably within the allotted time.

Question # 31

Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?

A.

The separation of roles of Chairman and Chief Executive

B.

The appointment of a senior Government representative to the Board

C.

The appointment of independent non-executive directors to the Board

D.

The establishment of an audit committee

Question # 32

A advertised her motor car for sale in a local newspaper at a price of £5,000.

 

Which of the following is correct?

A.

The advertisement is an invitation to treat.

B.

The advertisement constitutes an offer which may be accepted by anyone who can pay the price.

C.

If B telephones A and asks if he can pay by installments, his call would amount to a counter offer.

D.

If C telephones A and offers £4,500, she has made a counter offer.

Question # 33

CIMA ' s Code of Ethics would be violated if a professional accountant accepted a fee for work which is:

A.

fixed by a company ' s ethics committee

B.

based on a quotation fixed in advance of the work being earned out

C.

payable once a specified finding has been attained

D.

based on a price quotation submitted in competitive bidding

Question # 34

You have been asked to be involved in negotiations for the potential acquisition of another company. It so happens that your spouse is on the board of directors of that company. This affects the CIMA Code of Ethics fundamental principle of:

A.

Objectivity

B.

Professional competence and due care

C.

Transparency

D.

Reliability

Question # 35

To which of the following contracts does the Supply of Goods and Services Act 1982 apply?

(i) A contract with a joiner for the manufacture and supply of a cabinet.

(ii) A contract for the hire of a car.

(iii) A contract with a builder to construct an extension to a house.

A.

(i) only

B.

(ii) only

C.

(iii) only

D.

(i), (ii) and (iii)

Question # 36

Stefan takes his car to the local Car wash to get it cleaned. However, when he comes back an hour later, he finds that, although the car has been cleaned, the car has also been damaged, with scratch marks running

down all of the left side.

What type of term applied to this situation:

A.

Court Implied Term

B.

Statutory Implied Term

C.

Express Term

D.

Incorporated term

E.

Warranty

F.

Condition

G.

Innominate term

Question # 37

Which of the following statements is correct?

A.

A claim in respect of " wrongful trading " may only be brought by the liquidator against a director or a shadow director of the company.

B.

A claim in respect of " wrongful trading " may only be brought by a creditor of the company against a director or shadow director of the company.

C.

A claim in respect of " wrongful trading " may only be brought by the liquidator against a shareholder, director or shadow director of the company.

D.

A claim in respect of " wrongful trading " may only be brought by the shareholders against a director or shadow director of the company.

Question # 38

Which of the following is correct?

(i) The first directors are appointed upon the incorporation of the company.

(ii) A director is a person who occupies the position of director by whatever name called.

(iii) A shadow director is a person in accordance with whose directions or instructions the directors of the company are accustomed to act.

A.

(i) only

B.

(i) and (ii) only

C.

(ii) and (iii) only

D.

(i), (ii) and (iii)

Question # 39

In relation to corporate governance, which of the following statements best describes the situation in the UK?

A.

All corporate governance is enforceable in law

B.

Some corporate governance is enforceable in law

C.

No corporate governance is enforceable in law

D.

There is little or no corporate governance

Question # 40

Which of the following are examples of an invitation to treat? Select ALL that apply.

A.

Goods on display in a shop window.

B.

A billboard advertisement

C.

Goods on display on a supermarket shelf.

D.

A street vendor who offers a passerby a bunch of bananas for £1.

E.

A man who offers to sell his car for £1500 to a potential buyer.

Question # 41

Regarding auditor remuneration, a self-interest threat to professional competence and due care is created if

A.

a gift from a client is accepted

B.

the competitive fee quoted did not recognize the complexity of the assignment

C.

the auditor accepts a referral of a new client from an existing client

D.

a professional accountant in public practice solicits new work through advertising or other forms of marketing

Question # 42

The body responsible for reviewing the accountancy profession worldwide is:

A.

The Professional Oversight Board for Accountancy

B.

The International Federation of Accountants

C.

The Financial Reporting Council

D.

The Financial Review Board

Question # 43

What is the purpose of the equitable remedy of rescission?

A.

To place the parties in their pre-contract position.

B.

To force the party in breach to carry out the contract.

C.

To prevent a party from acting in breach of contract.

D.

To ensure that the innocent party is adequately compensated.

Question # 44

Which of the following statements is INCORRECT?

(i) A counter offer has the legal effect of destroying the original offer and putting another offer in its place.

(ii) For an agreement to be valid at law, the offer and the acceptance must be in the same form.

(iii) Agreements made by email are unenforceable at law.

A.

(i) only

B.

(ii) only

C.

(iii) only

D.

(ii) and (iii) only

Question # 45

The Auditing Practices Board has an objective of establishing ethical standards in relation to which aspects of the work of external auditors and those providing assurance services?

A.

Transparency, competitiveness and value

B.

Independence, objectivity and competitiveness

C.

Transparency, value and integrity

D.

Independence, objectivity and integrity

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