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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

Independence of mind allows a professional accountant to:

Options:

A.

Act with integrity

B.

Exercise objectivity

C.

Exercise professional skepticism

D.

All of the above

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Question 2

R, S and T are the only shareholders in RST Ltd each holding 5,000 ordinary £1 shares. R is the only director of the company. The articles of association of RST contain the following provisions:

1. R is to be a director of RST Ltd for life.

2. In the event of any resolution to dismiss R by ordinary resolution his votes shall count three times.

Which of the following is CORRECT?

(i) Provision 1 is void as a director cannot be appointed for a period exceeding 3 years.

(ii) Provision 2 is valid and R may outvote any proposed resolution to dismiss him.

(iii) Provisions 1 and 2 are both unenforceable by R as they are not ordinary membership rights.

Options:

A.

(i) only

B.

(ii) only

C.

(iii) only

D.

(i) and (iii) only

Question 3

Which THREE of the following are disadvantages of rules-based approaches to ethical standards?

Rules-based approaches:

Options:

A.

are inflexible and expensive

B.

motivate compliance through value and judgment

C.

are subject to precise definitions of wording and hence become contentious

D.

have subjective standards which may cause confusion.

E.

require objective enforcement by an independent party.

F.

are inconsistently applied due to the need for judgment.

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