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

2. According to CIMA, governance and social responsibility policies are:

A) Rooted in an organization's values and code of ethics
B) Not related to each other
C) Not related to an organization's code of ethics
D) In conflict with an organization's values

3. Why is it difficult to measure ethical issues?

A) Because there are no records
B) Because they tend to be kept secret
C) Because they tend not to be 'black and white'
D) Because they are open to interpretation

4. Which of the following is incorrect?

A) An agreement is not binding in English law unless it is supported by consideration or contained in a deed.
B) An invitation to treat is a call to start negotiations.
C) A person must know of an offer before he can accept it.
D) An acceptance is ineffective unless it is communicated to the offeror by the offeree personally.

5. Which of the following is presumed not to be intended to create legal relations?

A) A social arrangement.
B) A contract between father and son.
C) An agreement by Exe Ltd to make a gift to Wye Ltd.
D) A commercial transaction.

Solutions: