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

Wye has borrowed £10,000 from Exe and the loan has now become repayable in full.  Exe has received a cheque from Wye for £9,000 stated to be “in full and final settlement of the loan.” What is the position if Exe cashes the cheque?

(i) Exe will have accepted £9,000 in full and final settlement and will not be able to claim the other £1,000 from Wye.

(ii) Exe is legally entitled to cash the cheque and pursue Wye for the balance of £1,000.

(iii) Exe will have accepted £9,000, but at law payment of less than the amount due cannot satisfy the full debt. 

Which of the following is a civil action? 

i. An action by a local authority against a restaurant for selling impure food.

ii. An action by a taxpayer against Her Majesty's Revenue and Customs (“HMRC”) in relation to an expenses claim which has been refused by the Inspector of Taxes.

iii. An action by Exe Ltd against Zed Ltd for supplying equipment which was found to be dangerous.

There are several different schools of ethics. Which of the following best represents the ethical approach adopted by the accountancy profession?