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You work for a company that designs and manufactures children's toys. Which of the following is NOT an example of social responsibility that your company might choose to address?

Options:

The use of chemicals in manufacturing

The welfare of workers who assemble the company's products

The environmental impact of transporting toys from the country of manufacture to the country of sale

Whether the recommended retail price of a particular product provides sufficient margin after the unit cost of production is taken into account

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Question 2

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.

Options:

(i) only

(ii) only

(iii) only

(ii) and (iii) only

Question 3

In relation to registering a company limited by shares, which of the following is correct?

Options:

If the promoters fail to submit Articles of Association to the Registrar of Companies, the company cannot be registered.

If the promoters fail to submit Articles of Association to the Registrar of Companies, the provisions of Table A automatically apply.

If the promoters fail to submit Articles of Association to the Registrar of Companies, the documents will be returned to the promoters with a request for Articles to be submitted.

If the promoters fail to submit Articles of Association to the Registrar of Companies, the company will be registered but will have no Articles of Association applicable to it.

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Fundamentals of Ethics, Corporate Governance and Business Law Questions and Answers

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