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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

Which of the following describes the aim of corporate governance initiatives?

Options:

A.

To remove shareholder responsibility for the conduct of the company.

B.

To reduce the burden of regulation on all companies to increase shareholder wealth

C.

To enable shareholders to reduce their involvement in the governance of the company

D.

To ensure that shareholders may have confidence that the company is well run

Question 3

When might an ethical dilemma occur?

Options:

A.

When the boundaries between right and wrong are unclear

B.

When the code of ethics does not specify what action to take

C.

When an individual is under pressure to do something that does not feel right

D.

All of the above