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

1. The board of Zed Ltd wishes to borrow money from Exe Bank plc. What authority will the board require to enable it to proceed?

A) A special resolution
B) An ordinary resolution
C) A board resolution
D) A written resolution

2. Which of the following terms can be defined as follows?
"...the system by which companies are directed and controlled"

A) Corporate governance
B) Social responsibility
C) Ethics
D) Professional behavior

3. Which of the following is NOT a 'financial stakeholder' of an organization?

A) Employee
B) Media
C) Government
D) Customer

4. Which of the following is correct?
(i) The first directors are appointed upon the incorporation of the company.
(ii) A director is a person who occupies the position of director by whatever name called.
(iii) A shadow director is a person in accordance with whose directions or instructions the directors of the company are accustomed to act.

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

5. B was employed by CDE Ltd and was dismissed. B claimed unfair dismissal and requested a written statement of reasons for his dismissal. Within what period must CDE Ltd comply with this request?

A) 1 month
B) 14 days
C) 21 days
D) 7 days

Solutions: