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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

Question 1

Corporate governance codes may either be rules-based or principles-based

Which of the following statements correctly describes a rules-based approach to corporate governance?

Options:

A.

A rules-based approach requires that a company complies with the rules or explains why it has not.

B.

A rules-based approach instils the code into law but leaves the sanctions for non-compliance to be decided and enforced by the shareholders.

C.

A rules-based approach instils the code into law but encourages compliance with the spirit of the law.

D.

A rules-based approach instils the code into law with appropriate penalties for transgression.

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Question 2

P is an accountant working in a business Which of the following circumstances might create a self-interest threat for P in her professional role?

Options:

A.

A client is threatening P's dismissal over a disagreement about the review of accounting policies

B.

P is concerned over her employment security

C.

P is required to review data after previously being involved in its preparation

D.

The company is being threatened by litigation

Question 3

Wye Ltd is considering appointing Anne as a director of the company. Which of the following is incorrect? 

(i) If Anne is an un-discharged bankrupt, she cannot act as a company director.

(ii) If Anne is the subject of a disqualification order, she cannot act as a company director.

(iii) If Anne has already been appointed a director of another company, she cannot also act as a director of Wye Ltd.

Options:

A.

(i) only

B.

(ii) only

C.

(iii) only

D.

(ii) and (iii) only