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BA4 Exam Dumps : Fundamentals of Ethics, Corporate Governance and Business Law

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Fundamentals of Ethics, Corporate Governance and Business Law Questions and Answers

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Question 1

Which of the following are TWO reasons why new legislation might be introduced in response to corporate scandals?

Options:

A.

To prevent this type of unethical behavior by making it illegal

B.

To punish individuals for adhering to codes of ethics

C.

To encourage companies to make their own decisions about ethical matters

D.

To enforce minimum standards of behavior

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Question 2

Which ONE of the following provides an example of circumstances that may create self-review threats for a professional accountant in public practice?

Options:

A.

The discovery of a significant error during a re-evaluation of the work of the professional accountant in public practice

B.

Reporting on the operation of financial systems after being involved in their design or implementation

C.

A member of the assurance team being, or having recently been, a director or officer of that client

D.

All of the above

Question 3

On 1st October X Ltd wrote to Y Ltd offering to sell a machine at a price of £5,000. The letter stated that Y Ltd must give X Ltd “notice in writing” of its acceptance of the offer by 8th October. Y Ltd posted its acceptance on 5th October and this reached X Ltd on 7th October. In the meantime X Ltd sent a letter to Y Ltd on 4th October revoking its offer, and this reached Y Ltd on 8th October.

 

Which of the following is correct?

Options:

A.

There is no contract between X Ltd and Y Ltd because the offer was withdrawn on 4th October when the revocation was sent to Y Ltd.

B.

There is no contract between X Ltd and Y Ltd because the offer was withdrawn on 8th October when the revocation was received by Y Ltd.

C.

X Ltd and Y Ltd contracted on 5th October.

D.

X Ltd and Y Ltd contracted on 7th October.

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