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

2. 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?

A) The CSR report reflects GHI's significant economic, environmental and social impact
B) The CSR report is compiled and published only when material developments within GHI policies and achievements become available to warrant the expense of producing a new report
C) The CSR report presents information using visual aids that improve the accessibility and understand ability of the information for stakeholders.
D) The CSR report includes both positive and negative aspects of GHI's performance for the year

3. Which of the following remedies is not available for a breach of a contract to provide personal services?

A) Damages.
B) Rescission.
C) An injunction.
D) A decree of specific performance.

4. What is the rule in Foss v Harbottle (1843)?

A) Where a wrong has been done to the directors it is the company which should sue.
B) Where a wrong has been done to the company it is the company which should sue.
C) Where a wrong has been done to the company it is the directors who should sue.
D) Where a wrong has been done to the shareholders it is the company which should sue.

5. The UK Corporate Governance Code is primarily concerned with the effective control, business efficacy and accountability of the management of public listed companies for the benefit of which of the following?

A) Stakeholders
B) Employees
C) Investors
D) Shareholders

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