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

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

A) Local charities
B) Journalists
C) Employees
D) Competitors

2. In the event of a conflict between European Law and French Law which will prevail?

A) European law
B) The French Code Civile
C) French private law
D) French public law

3. All policies for governance and social responsibility are ultimately rooted in an organization's:

A) Stakeholder relationships
B) The Government
C) Values and code of ethics
D) The Board

4. Which of the following statements is correct in relation to the "maintenance of capital" principle?

A) In general, a company can use its share capital for any reason whatsoever, as long as it ensures that there is sufficient remaining to meet the company's debts.
B) A company cannot use its share capital which must be set aside as a fund for creditors.
C) A company cannot use its share capital, and may only return it to its members with the permission of the court.
D) In general, a company is not able to freely return its share capital to its members.

5. You are happy to be held accountable for your actions and hope that others can trust and depend upon you. Which TWO of the personal qualities identified by the CIMA Code of Ethics does this demonstrate?

A) Responsibility
B) Respect
C) Timeliness
D) Reliability

Solutions: