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CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:

1. Which of the following statements are part of CIMA's definition of professional behavior?Please select the TWO statements that apply.

A) Avoid any action that discredits one's employer or client
B) Compliance with laws and regulations
C) Compliance with guidelines and standards
D) Avoid any action that discredits the profession

2. B is a director and shareholder in Cee Ltd. Which ONE of the following is INCORRECT?

A) B cannot vote as a shareholder in any meeting called to dismiss him as a director.
B) B may be dismissed at any time by an ordinary resolution of the shareholders.
C) The company must be given 28 days notice of any proposed resolution to dismiss B.
D) B is entitled to speak at the meeting called to consider the proposal to dismiss him.

3. C tends to be polite to colleagues when they are present, but very rude about them in their absence.
She lacks the personal quality identified by CIMA as:

A) Reserve
B) Responsibility
C) Reliability
D) Respect

4. Which of the following statements is correct in relation to private and public companies limited by shares?

A) A private and public company are required to hold an AGM
B) A private company must have a qualified company secretary
C) A public company is required to have at least one director
D) A public company cannot commence trading until it has satisfied minimum share capital requirements

5. Which of the following statements is correct in relation to the ability of a company to contract?

A) If the shareholders learn that the directors are about to ignore the restrictions placed upon their ability to contract by the company the shareholders are unable to prevent the directors from proceeding
B) The shareholders of a company have the ability to enter into a contract on behalf of the company, irrespective of any restrictions on the directors.
C) If a company wishes to restrict the ability of its directors to enter into particular contracts it may do so by placing restrictions on the directors in its articles of association
D) If a company has restricted the ability of its directors to contact and the directors ignore the restrictions, then the outsiders may not enforce the contract.

Solutions:

Question # 1 Answer: B,D

Question # 2 Answer: A

Question # 3 Answer: D

Question # 4 Answer: D

Question # 5 Answer: A