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

1. Which of the following are situations involving familiarity threats? Select ALL that apply.

A) Steve - Conducts monthly reviews of his team's performance (the team hasn't changed for the past five years).
B) Kay - A department manager who doesn 't reprimand one of her team members for doing a job wrong because they are friends.
C) Angela - Has worked on the production line for the past seven years.
D) Steve - A business manager who hires his 18-year-old son for a managerial level job.
E) Bryan - Has worked as an accountant for the past ten years. He always makes sure he is up-to-date with changes in the industry.

2. Which of the following is NOT one of the fundamental principles of CIMA's Code of Ethics?

A) Professional behavior
B) Objectivity
C) Accountability
D) Integrity

3. Which ONE of the following might NOT be the consequence of unethical behavior by a professional body?

A) Undermined credibility
B) Loss of Chartered Institute status
C) Loss of reputation
D) Systematic widespread fraud

4. Terry and Taylor are music producers in the UK who have decided to go into business together. They set up their partnership as an LLP and call itjammin' Records. Unfortunately their company quickly fails due to having large debts.
Who is liable for these debts?

A) Terry
B) Jammin' Records
C) Terry and Taylor
D) Terry, Taylor and Jammin' Records
E) No one
F) Taylor

5. What is a fundamental attribute of a competent accountant?

A) Ability to calculate correctly
B) Ability to communicate effectively
C) Ability to exercise good judgment
D) Ability to be efficient

Solutions: