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

1. In the UK, the body responsible for reviewing the regulatory activities of the professional accountancy bodies is:

A) The Professional Oversight Board for Accountancy
B) The Financial Reporting Council
C) The International Federation of Accountants
D) The Financial Review Board

2. Which of the following is INCORRECT in relation to business names?

A) The business name of a private company limited by shares must end in "Limited" or "Ltd".
B) Both public and private companies may use a business name.
C) If a business name is used which is the same or very similar to that of an existing business, an action in the tort of passing off may be brought by the existing business.
D) If a business name is used, the name of the proprietor must be stated on business correspondence and at the premises where the business is carried on.

3. Which of the following statements refer to the remuneration committee? Select ALL that apply.

A) Makes decisions regarding the appointment, re-appointment and removal of the external auditor.
B) Has a responsibility to attract, retain and motivate directors.
C) Makes decisions regarding the appointment of new directors.
D) Has a responsibility to monitor and review the effectiveness of the internal audit function.
E) Makes decisions regarding the payment of directors.
F) Staffed exclusively by NEDs.

4. Which of the following groups is a non-financial as opposed to a financial stakeholder of a company?

A) Customers
B) Competitors
C) Shareholders
D) Suppliers

5. What is a fundamental attribute of a competent accountant?

A) Ability to calculate correctly
B) Ability to exercise good judgment
C) Ability to be efficient
D) Ability to communicate effectively

Solutions: