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

1. V is an accountant for HIJ company. This large international jewelry manufacturer and retailer both mines, designs and sets and retails its gemstones It has significant mining operates in Country A and Country Z.
It has been a key player in the development of ethical employment mining practices especially in advanced safety policies and it received a United Nations award for action against Blood Diamonds It publishes a detailed CSR report which highlights how its approach to safety is a core business value and how its KPIs around employee turnover and accident have improved annually.
Vs company has recently appointed a new CEO who is taking an aggressive stance to improving profit margins and wants to reduce the expenditure on safety, a key aspect of the approach to ethical mining practices in HIJ company Which THREE of the following statements would V use to support the continuation of the ethical policy in this new culture? The ethical treatment of the mining workforce

A) reduces the risk of accidents and HIJ company's insurance premiums
B) is the right thing to do
C) reflects HIJ company's core business values
D) improves HIJ company's reputation and access to investment from a wider range of investors
E) increases productivity through fewer accidents and lower staff turnover

2. Which of the following reasons for dismissal are NOT deemed to be automatically unfair?

A) Serious misconduct
B) Selection for redundancy because of membership of a trade union.
C) Pregnancy
D) Refusing to join an independent trade union.

3. Which of the 'fundamental principles' of CIMA's Code of Ethics is defined as follows?
"A professional accountant should act diligently and in accordance with applicable technical and professional standards"

A) Integrity
B) Objectivity
C) Professional competence and due care
D) Professional behavior

4. Which THREE of the following may be external stakeholders in the activities of a nuclear power station?

A) Suppliers
B) Environmental pressure groups
C) The government
D) Local residents
E) Employees
F) Finance providers

5. 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) Leak the information: that way F's conscience will be clear but the information won't be traced back to her
B) Resign: F cannot carry on working at a company which is so unethical
C) 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
D) Do nothing: Professionally, Mrs F is bound to respect the confidentiality of the information she has received

Solutions: