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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

CIMA's Code of Ethics would be violated if a professional accountant accepted a fee for work which is:

Options:

A.

fixed by a company's ethics committee

B.

based on a quotation fixed in advance of the work being earned out

C.

payable once a specified finding has been attained

D.

based on a price quotation submitted in competitive bidding

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Question 2

Which of the following is INCORRECT in relation to the Unfair Terms in Consumer Contracts Regulations 1999?

Options:

A.

The regulations only apply to standard form contracts.

B.

The regulations only apply to exemption clauses.

C.

The regulations only apply to consumer contracts entered into by a human being and do not apply to limited companies.

D.

Whether or not a clause is written in plain English is a factor which may be taken into account in deciding whether the term is unfair.   

Question 3

Adam, Brian, Charles and David each held 25% of the issued share capital of ABCD Ltd. Adam has recently issued further shares to himself in order to increase his voting power. Which of the following is incorrect?

Options:

A.

The share issue is automatically invalid.

B.

The shareholders may ratify the share issue by ordinary resolution.

C.

The shareholders may challenge the validity of the share issue using Section 994 of the Companies Act 2006, on the ground that the issue is "unfairly prejudicial to the interests of the shareholders".

D.

The company may proceed against Adam for breach of fiduciary duty.

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