Exact2Pass
Your boss knows that you will always strive to deliver a project on time and on budget. Which TWO of the personal qualities identified by the CIMA Code of Ethics does this demonstrate?
Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?
In furtherance of their duty to promote the success of the company under Section 172 of the Companies Act 2006, the directors are required to take account of amongst others, the company and its members, employees and suppliers.
Which of the following can enforce this duty against the directors?
You work for an oil company and your company is negotiating a contract with the government of another country. During the course of the negotiations, your managing director has run up a very substantial expenses bill for entertaining personnel from the country's government. This scenario suggests which TWO of the following ethical issues?
Which of the following need to be proved in order for there to be a misrepresentation? Select ALL that apply.
Which of the following statements correctly defines the ethics of utilitarianism?
Which of the following statements is TRUE in relation to ethical dilemmas?
A was disqualified from driving but continued his employment as a driver for XYZ plc. The company discovered that A had lost his driving license and immediately dismissed him without notice.
Which of the following is correct?
i. As no notice was provided A's dismissal amounts to constructive dismissal.
ii. The employer was justified in dismissing A without notice as he was unable to continue his employment.
iii. A may make a claim for wrongful dismissal as, although his dismissal was justified, he was entitled to notice.
The board of Zed Ltd wishes to borrow money from Exe Bank plc. What authority will the board require to enable it to proceed?
S is management accountant for a small construction company. The company's financial year is due to end in a few weeks. The company has a number of large construction projects, one of which is behind schedule. One of the directors of the company has asked S to raise an invoice for a progress payment that is due on completion of the next phase of the contract. S knows that this phase will not be complete until after the year end, but the director says that the client needs the invoice now, to allow them to process it in time for payment when the phase is complete.
Which THREE of the following would it be appropriate for S to do?
Which of the following statements is INCORRECT?
i. A contract is a voluntary agreement whereas obligations in the tort of negligence are imposed by the state.
ii. Damages are only available for breach of contract and breach of the tort of negligence if damage, injury or loss has been suffered by the claimant.
iii. A contract breaker is liable whether or not he is at fault whereas to be liable in the tort of negligence the defendant must have been at fault.
Which one of the following reasons is not automatically an unfair reason for dismissal?
You work for a chain of restaurants. The head chef of your flagship restaurant raises questions about the inclusion of highly endangered species of fish on the restaurant's menu. Is it an ethical issue and why?
Which of the following statements is incorrect in relation to the revised derivative action under section 260 of the Companies Act 2006?
(i) The action may be brought by a single shareholder.
(ii) The action may be brought in relation to an act of negligence by the directors.
(iii) The action cannot be brought in respect of a proposed act by the directors.
Which of the following is NOT a correct distinction between shares and debentures?
A was employed by CDE plc and suffered an occupational injury. CDE plc has established that A was partly responsible for his own injuries. Which of the following claims is NOT affected by A's contributory negligence?
(i) A claim against CDE plc in the tort of negligence
(ii) A claim against CDE plc for breach of statutory duty
(iii) A claim against CDE plc for breach of contract
Karl has been offered a compensatory award after a court ruled that he had been unfairly dismissed by his former employer.
He is 45 and had been working for the company for 18 years.
For his basic reward, how many weeks' pay should he receive?
Seller Ltd is a wholesaler of electrical goods which it sells to retailers only Which one of the following statements is correct in relation to the exclusion of the conditions which are implied into contracts for the sale of goods by sections 12 to 15 of the Sale of Goods Act 1979?
In the UK, the body responsible for taking an appropriate role in the development of statutes, regulations and accounting standards which affect the conduct of auditing and assurance services, both domestically and internationally is:
Working late one evening, you see a colleague copying information on to series of CD Roms. He tells you that software is too expensive for him to afford for his home computer but that he needs the software for his own personal use and in case he might take work home at some point. Is this an ethical issue and why?
Why are the principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior “fundamental”?
There are several different schools of ethics. Which of the following best represents the ethical approach adopted by the accountancy profession?
Which THREE of the following represent the impact of one of the seven principles of public life on accountants?
When awarding contracts accountants should ensure that this is based upon objective measures of comparative merit.
James works for a large company in the City. He likes working there, though he has just identified an issue of fraud within the company.
He has double-checked the facts, deduced that the fraudulent activity is both unethical and illegal, identified a number of ethical principles that have been breached and identified who is involved and who could be
affected.
What should he do next?
According to the CIMA code of ethics, if appropriate safeguards cannot be identified to address threats to compliance with fundamental principles, a professional accountant should:
Which of the following correctly describes the circumstances in which directors may be held liable to contribute to the assets of insolvent companies in respect of "wrongful trading"?
How can values become part of a company's DNA? Choose TWO of the following options.
Mr A sent an email to Mr B offering to sell him some goods for $1.000 Mr B replied by email stating I'll buy the goods Payment will be made over the next 4 weeks." Mr B has now discovered that Mr A has sold the goods to Mr C. Which of the following is correct?
Tee Ltd placed some computers in its shop window with a notice which reaD. "Special offer. Internet-ready computers for sale at £400."
Which of the following is correct?
(i) The notice amounts to an invitation to treat.
(ii) When a customer called in to the shop and offered £350 for one of the computers, he had made a counter offer.
(iii) The shop is obliged to sell a computer to anyone who can pay the price.
Which of the following is normally not an implied term of a contract of employment?
In a situation where a professional accountant needs to choose in whose interest he or she is to behave and act, which of the following interests should he or she put first?
Which of the following must an internal audit satisfy in order to be deemed independent? Select ALL that apply.
Which of the following is an example of a safeguard created by the profession, legislation or regulation as opposed to a safeguard in the work environment?
You have been charged with the task of reviewing the CSR report for your company, GHI. Which of the following aspects of the report represent a lack of compliance with the Global Reporting Initiative G4 Sustainability Reporting Guidelines?
X was employed by Bee Ltd as its senior design consultant. X contracted with Bee Ltd that, when his employment with the company ceased, he would not act in competition with it or solicit its customers. After X left Bee Ltd, he registered a company called Cee Ltd which immediately began working in competition with Bee Ltd and soliciting its customers. Bee Ltd complained to X about this conduct, but X stated that, as the work was being undertaken by Cee Ltd, a separate legal entity, X had not acted in breach of the agreement with Bee Ltd.
Which of the following statements is correct?
Anne, Bill, Chris and Diane are the only directors of ABCD Ltd. Bill is the Chairman of the board and has a casting vote. A board meeting was called to consider a proposal to enter into a contract with EFG Ltd. Which of the following is INCORRECT?
A, B and C carry on business in a general partnership. A has proved an unsatisfactory partner in that he is continually absent from work for no justifiable reason. B and C wish to expel A from the partnership. Which of the following is CORRECT?
Which of the following does NOT discharge a contract?
(i) Self-induced frustration.
(ii) Performance of the parties' obligations under the contract apart from minor defects
(iii) The insolvency of one of the parties making it impossible for him to pay the contract price.
Which of the following is correct in relation to a company's ability to contract where the company was registered after the Companies Act 2006 was fully implemented?
Company F is a new business that prides itself on being green and ethical. It uses renewable energy to run its factories, abides by all the rules and regulations and regularly donates money to sustainable development
charities around the world, despite occasionally being unable to fully pay its workers.
Why is Company F in violation of Carroll's CSR pyramid?
Which of the following is correct in relation to the memorandum of association when registering a company limited by shares?
The International Accounting Education Standards Board has published a document titled "Approaches to the Development and Maintenance of Professional Values, Ethics and Attitudes in Accounting Education Programs'", which provides guidance about the personal qualities needed by accountants to meet the expectations of the public
The particular qualities which it identifies are
R and P are the only shareholders in RP Ltd, each holding 100 ordinary £1 shares. They have both paid half the nominal value of the shares. The company has been placed in creditors' voluntary liquidation on the ground that it is unable to pay its debts.
Which of the following is correct?
Which of the following is correctly stated to be an advantage of carrying on business via a company limited by shares?
(i) The liability of the company is limited.
(ii) In general the directors are not liable for the debts of the company.
(iii) The liability of the shareholders is limited.
Which of the following reasons for dismissal are NOT deemed to be automatically unfair?
Which THREE of the following are disadvantages of rules-based approaches to ethical standards?
Rules-based approaches:
Exe Ltd has five members. A has 90% of the shares and the other four members holds 2.5% of the shares each.
Which of the following is correct in relation to the calling of a general meeting on short notice?
A professional accountant's social responsibility relates to which TWO of the following?
Brian is the registered owner of 500 shares in Exe Ltd. Which of the following statements is correct?
A is about to register a new company limited by shares, “A Ltd”, in order to carry on a retail business. A has ordered a quantity of goods from a supplier “for and on behalf of A Ltd”. Which of the following is correct?
As a member of the audit team of a large company, J has discovered that one of his close friends is in a part of the business which is going to be sold off, and his friend is likely to face redundancy. What should he do?
In which of the following business organisations do the members have limited liability and the ability to keep the constitution private?
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.
Which of the following is NOT one of the 'seven principles of public life', as defined by the Committee of Standards in Public Life?
Which of the following have made an error of principle? Select ALL that apply.
Which of the following is correct in relation to a company's ability to have a restricted objects clause in its constitution?
(i) A company may restrict its objects in its constitution
(ii) Any clause restricting the company's objects should be included in the company's articles of association
(iii) The shareholders may pass a special resolution to alter the company's constitution by including a clause which restricts the company's objects
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 manager is consistently rude to a female employee and seems to have a low opinion of her ability, despite the fact that she is competent, works hard and is well liked by her peers. This is potentially an example of the ethical issue of:
ABC Ltd has contracted with DEF Ltd. If ABC Ltd acts in breach of a warranty, which of the following is correct?
(i) DEF Ltd may terminate the contract and sue for damages.
(ii) DEF Ltd may sue for damages but may not terminate the contract.
(iii) DEF Ltd may ignore the breach and continue with the contract.
Which of the following are correct in relation to supervisory and management boards of directors?
1 A supervisory board reports to the mangament board in respect of business policy and future strategy
2 A management board is usually made up entirely of executive directors
3 A supervisory board includes employee representatives.
Which of the following is NOT an essential element of a valid simple contract?
Anne was induced to enter into a contract with Benny by his negligent misrepresentation. Which of the following is correct?
(i) Anne has a remedy against Benny in the tort of negligence.
(ii) Anne has a remedy against Benny under the Misrepresentation Act 1967.
(iii) Anne has a remedy in the tort of deceit.
You work for a company based in a capital city that leases office space to other organizations. Which of the following corporate issues is not related to ethics or social responsibility?
Governance denotes the generic way an organization is run with particular emphasis on:
AB Ltd contracted to deliver two desks and three filing cabinets to CD Ltd. On the day when delivery was due to take place AB Ltd did not have a vehicle with sufficient capacity to hold all the goods. As a result AB Ltd delivered the two desks only
Which of the following is correct?
Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?
Which of the following statements is incorrect in relation to a public company limited by shares?
In the UK, the body responsible for promoting confidence in corporate reporting and governance is:
Which of the following statements is correct in relation to private and public companies limited by shares?
Which of the following does not apply to a private company which is about to declare a dividend?
Which of the following is correct?
(i) All courts below the Supreme Court may refer a case involving European Law to the European Court of Justice for a preliminary ruling.
(ii) The Supreme Court must refer a case involving European Law to the European Court of Justice for a preliminary ruling.
(iii) An English court is not bound to give effect to a preliminary ruling of the European Court of Justice.
Which of the following is correct in relation to the UK Corporate Governance Code?
(i) The Code gives rise to a disclosure requirement
(ii) Breach of the Code gives rise to criminal penalties
(iii) Breach of the Code gives rise to civil liability
A business that behaves ethically may experience which of the following benefits; Select ALL that apply.
Which of the following identifies civil as opposed to criminal proceedings?
i. The case was heard by the Magistrates Court.
ii. The case was brought by a claimant.
iii. The case was proved on the balance of probabilities.
Which TWO of the following are examples of safeguards that may increase the likelihood of identifying or deterring unethical behavior?
Which of the following is INCORRECT regarding the differences between a general partnership and a company limited by shares?
(i) Both a partnership and a company are formed by registration with the Registrar of Companies.
(ii) All partners are agents of the firm and all directors are agents of the company.
(iii) All partners are fully liable for the firm’s debts and the company is fully liable for its own debts.