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

1. B a new employee, has noticed that other members of staff in the company falsely complete their timesheets at the end of the month, making it look like they have worked more hours than they actually have.
When asked about it, C. another employee stated that management were aware of the practice, but they were happy to tolerate this as long as it was a limited amount extra, and it was up to B to decide whether or not to do the same B decided to add a few extra unworked hours to her own timesheet This is an example of what type of influence on ethical behavior?

A) Professional codes of ethics
B) Peer pressure
C) Corporate governance
D) Corporate culture

2. Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?

A) Integrity
B) Instinct
C) Initiative
D) Impartiality

3. Which of the following are likely advantages of being a sole trader? Select ALL that apply.

A) They retain all profits.
B) Greater degree of independence.
C) No formal procedures required to set up the business.
D) They have limited personal responsibility in regards to the debts of the business.
E) Expansion is likely to be fast.
F) Working hours will be relatively short.

4. Which of the following is incorrect?

A) Where there is a conflict between equity and the common law, the common law prevails.
B) A decision of the Supreme Court is a superior source of law to a decision of the High Court.
C) Where there is a conflict between English Law and European Law, European Law prevails.
D) An Act of Parliament is a superior source of law to a decision of the Supreme Court.

5. Rank the following, starting with the highest court:
(i) Court of Appeal (Civil)
(ii) Supreme Court
(iii) County Court
(iv) High Court

A) (i), (ii), (iv), (iii)
B) (i), (ii), (iii), (v)
C) (ii), (iv), (i), (iii)
D) (ii), (i), (iv), (iii)

Solutions: