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

1. Company F is a new business that prides itself on being green and ethical. It uses renewable energy to run its factories, abides by all the rules and regulations and regularly donates money to sustainable development charities around the world, despite occasionally being unable to fully pay its workers.
Why is Company F in violation of Carroll's CSR pyramid?

A) Because it should be donating to charities based in their own country.
B) It is not in violation of Carroll's pyramid.
C) Because it is not profitable.
D) Because using renewable energy to run factories generally isn't advised as it can be unreliable.

2. Mr A sent an email to Mr B offering to sell him some goods for $1.000 Mr B replied by email stating I'll buy the goods Payment will be made over the next 4 weeks." Mr B has now discovered that Mr A has sold the goods to Mr C.
Which of the following is correct?

A) Mr C has intervened in the contract of Mr A and Mr B and can be forced to return the goods for the benefit of Mr B
B) Mr A was free to sell the goods to Mr C as communications by email are presumed to show that the parties did not intend to create legal relations
C) Mr A has acted in breach of contract as Mr B has accepted his offer
D) Mr A was free to sell the goods to Mr C as Mr B's email amounted to a counter offer which rejected Mr A's offer

3. In relation to the law of misrepresentation, which of the following statements is incorrect?

A) A misrepresentation is not actionable unless it induced the claimant to contract.
B) An honest statement of opinion by a layman cannot amount to a misrepresentation.
C) A person cannot be liable for misrepresentation, if the truth of the statement could be determined by the misrepresentee making reasonable enquiries.
D) In general, silence cannot amount to a misrepresentation.

4. You work for an international mining company. Which of the following corporate issues is NOT related to ethics or social responsibility?

A) Whether employees are paid a fair wage
B) The impact of your operations on the environment
C) Your company's response to HIV/Aids among workers in sub-Saharan Africa
D) Deciding whether to approve a planned refurbishment of head office

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) Shareholders
D) Investors

Solutions: