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

1. What can companies do in order to minimize the likelihood of future legislation?

A) Maintain effective self regulation
B) Insist on the highest standards of ethical behavior from their company and its employees
C) Understand and address what the public expects of companies in terms of ethical behavior and social responsibilities
D) All of the above

2. Which of the following would NOT violate the CIMA Code of Ethics fundamental principle of confidentiality?

A) Not disclosing information if required to do so by law
B) Using sensitive information gained with a previous employer for the advantage of a new employer
C) Disclosing publicly available information
D) Disclosing confidential information to third parties

3. Which of the following is correct?
i. A company intending to issue new shares for cash must first offer them to the existing shareholders.
ii. A company may dispense with the requirement to offer new shares to existing shareholders by passing a special resolution.
iii. A company issuing shares for a non-cash consideration is not required to offer the shares to the existing members first.

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

4. Miss B is working closely with Mr L to deliver an important report on the efficiency of Mr L's department. They have had to work late together several times, and last night they went out to dinner afterwards. Miss B is starting to think she may have feelings for Mr L.
Could her independence be called into question?

A) No, provided she does not act on her feelings and continues to be professional
B) Yes, having dinner with a work colleague can affect her independence of appearance
C) No, she is not actually dating Mr L so her independence of appearance is not compromised
D) Yes, her feelings could be influencing her independence of mind

5. Which TWO of the following are reasons why a company would choose to introduce a values based code of ethics?

A) To provide guidance for staff
B) To identify gifted staff
C) To improve the cost efficiency of internal processes
D) To help staff to tackle the ethical dilemmas that they might face at work

Solutions: