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1. Jo is employed as management accountant of a large retailer. Jo has been asked to call a supplier and promise settlement of their account 'next week'. Jo is aware that her employer will definitely not have sufficient funds available to make the payment. If Jo accepts the request, which of the following
'fundamental principles' of CIMA's Code of Ethics will be compromised?
A) Professional behavior
B) Objectivity
C) Integrity
D) Confidentiality
2. Zed plc wishes to issue £500,000 of shares on terms that the holders will receive a dividend before the other shareholders and they will be bought back by the company in 12 months' time. Which of the following best describes these shares?
A) Preference shares
B) Redeemable ordinary shares
C) Ordinary shares
D) Redeemable preference shares
3. Which of the following is incorrect?
A) The Articles of Association may be altered by special resolution.
B) A company's Articles cannot provide that the Articles are unalterable.
C) Subject to the company's Articles of Association, shareholder approval is not required to enable the company to borrow money.
D) Subject to the company's Articles of Association, shareholder approval is not required to authorise the issue of shares direct to one person for a non-cash consideration.
4. A company's board of directors is faced with an ethical dilemm
a. The directors decide to adopt a utilitarian approach to coming up with a solution Therefore, they will take action based on which of the following approaches?
A) They will ensure that the result of their action will maximise profits for the company shareholders
B) They will do whatever results in the greatest amount of good for the greatest number of people affected by the action
C) They will base their decision on previous consequences and results from past actions in similar situations
D) They will focus on the intrinsic goodness or value of their action
5. Which of the following is correct in relation to damages?
(i) The victim of a breach of contract may claim damages in respect of losses caused by the breach which were within the contemplation of the contract breaker.
(ii) As a general rule damages cannot be claimed for annoyance and inconvenience caused by the breach of contract.
(iii) Where there is a breach of contract, damages are available to the innocent party as of right.
A) (ii) and (iii) only
B) (i), (ii) and (iii)
C) (ii) only
D) (i) only
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: B |
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