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CIMA BA4 Exam Syllabus Topics:

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

1. Which of the following is the responsibility of the Chairman, according to the UK Corporate Governance Code?

A) Carrying out the policies of the Board
B) Controlling the workings of the Board
C) Operational control
D) Authorizing major investments

2. J is at his company's reception desk when the promotions manager of a new restaurant and bar nearby hands him a number of vouchers for cheap meals and drinks. At the promotion manager's request, J agrees to share out the vouchers among his company's employees. J does not earn much and is tempted to keep the vouchers for himself and his friends. Is this an ethical issue and why?

A) Yes - the vouchers were given to J on the understanding that he would distribute them to other employees rather than keep them for himself
B) Yes - promotional offers of this sort are unethical and J should throw away all of the vouchers
C) No - the vouchers were given to J, so he can do what he likes with them
D) No - as long as J gives vouchers to other company employees who earn as little as he does

3. F knows from preparing the accounts that the company she works for is going to have to make redundancies due to the recession. She also knows that, despite the recession, the Managing Director continues to enjoy lavish perks and even uses a private jet. What should she do?

A) Go to the press: Mrs F has a duty to report this in the public interest and the interest of the staff who will be made redundant
B) Resign: F cannot carry on working at a company which is so unethical
C) Leak the information: that way F's conscience will be clear but the information won't be traced back to her
D) Do nothing: Professionally, Mrs F is bound to respect the confidentiality of the information she has received

4. You have been asked to be involved in negotiations for the potential acquisition of another company. It so happens that your spouse is on the board of directors of that company. This affects the CIMA Code of Ethics fundamental principle of:

A) Reliability
B) Transparency
C) Professional competence and due care
D) Objectivity

5. What, according to CarlyFiorina, CEO of Hewlett Packard, is the spirit of a code of ethics:

A) "It is doing the right thing because everybody is watching"
B) "It is doing the right thing because you have to"
C) "It is doing the right thing when no-one is watching"
D) "It is doing the right thing, because it's for the best"

Solutions: