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

1. One of your colleagues has just been poached by a competitor. You have reason to suspect that he has provided his new employer with sensitive information about your company that could disadvantage your employer. This affects the CIMA Code of Ethics fundamental principle of:

A) Respect
B) Responsibility
C) Cooperation
D) Confidentiality

2. A advertised her motor car for sale in a local newspaper at a price of £5,000.
Which of the following is correct?

A) If B telephones A and asks if he can pay by installments, his call would amount to a counter offer.
B) The advertisement constitutes an offer which may be accepted by anyone who can pay the price.
C) If C telephones A and offers £4,500, she has made a counter offer.
D) The advertisement is an invitation to treat.

3. Which of the following identifies civil as opposed to criminal proceedings?
i. The case was heard by the Magistrates Court.
ii. The case was brought by a claimant.
iii. The case was proved on the balance of probabilities.

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

4. Pablo and Paula are in discussions with a potential buyer over the sale of their house. They tell the potential buyer that if they want to purchase the house for the full amount of £200,000, they'll need to send a letter that confirms their offer by Friday. If they don't receive such a letter by then, they'll withdraw the house from the market.
Friday comes and no letter arrives. However, it turned out the potential buyer actually posted the letter on the Monday before, and it simply got lost in the post. The letter eventually turns up on the following Monday.
Baring this in mind, are Pablo and Paula legally obliged to sell their house?

A) Yes - The potential buyer can choose to accept Pablo and Paulo's price whenever he wants, providing that he hasn't already declined it.
B) No - They can decline the potential buyer's request at any time, regardless of when they received the letter.
C) No - Because they received the letter after the closing date they do not have to accept the potential buyer's offer.
D) Yes - Because the potential buyer sent the letter before the closing date.

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

Solutions: