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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

Which of the following are TWO reasons why new legislation might be introduced in response to corporate scandals?

Options:

A.

To prevent this type of unethical behavior by making it illegal

B.

To punish individuals for adhering to codes of ethics

C.

To encourage companies to make their own decisions about ethical matters

D.

To enforce minimum standards of behavior

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Question 2

You work for an accountancy firm and discover that a member of an assurance team has a significant conflict of interest. You take CIMA's Code of Ethics with you when you alert your board of directors as to why this is an important issue, but the board decides that the conflict of interest is not important. This is an example of tension between:

Options:

A.

Corporate and professional values

B.

Corporate and societal values

C.

Societal and personal values

D.

All of the above

Question 3

You work for an airline company and discover a series of regular payments made to a lobbying group that campaigns to allow people freedom to fly as and when they choose without being taxed for contributing to global warming. The group's website includes specific commentary that claims to 'expose the myth of global warming'. Neither your company nor the lobbying group (which describes itself as 'independent') mention the financial link between your organizations. Is this an ethical issue and why?

Options:

A.

Yes - the lobbying group appears to be funded at least in part by your company so it is not independent and is therefore misleading people about its status

B.

Maybe - depending on whether the lobbying group is funded by other airlines as well as your company

C.

No - companies are entitled to fund any groups that they choose, particularly if it is in their financial interest. Neither party has done anything unethical

D.

No - there is unlikely to be any connection between the payments and the group's aims. After all, companies regularly fund Non-Government Organizations (NGOs) and other types of organization

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