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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 is correctly stated to be an advantage of carrying on business via a company limited by shares? 

(i) The liability of the company is limited.

(ii) In general the directors are not liable for the debts of the company.

(iii) The liability of the shareholders is limited.  

Options:

A.

(i) only

B.

(i) and (ii) only

C.

(ii) and (iii) only

D.

(iii) only

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Question 2

IFAC member firms or bodies:

Options:

A.

Are entitled to use the IFAC Code of Ethics as an optional approach for their own organization

B.

Must, by law, adhere to the IFAC Code of Ethics

C.

Must prosecute any individual who fails to adhere to any part of the IFAC Code of Ethics

D.

Must not apply less stringent standards than those stated in the IFAC Code of Ethics

Question 3

'Remuneration' is one of the main principles in the Corporate Governance Code. Which of the following is NOT best practice under the 'Remuneration' principle?

Options:

A.

Remuneration should be sufficient to attract, retain and motivate directors of the quality required to run the company successfully, but should not be excessive

B.

Remuneration should be structured in order to link a significant proportion of the rewards to corporate and individual performance

C.

There should be a formal and transparent procedure for developing policy on executive remuneration

D.

The board of directors are able to set the remuneration of non-executive directors

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