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CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
1. In relation to the law of misrepresentation, which of the following statements is incorrect?
A) A person cannot be liable for misrepresentation, if the truth of the statement could be determined by the misrepresentee making reasonable enquiries.
B) In general, silence cannot amount to a misrepresentation.
C) A misrepresentation is not actionable unless it induced the claimant to contract.
D) An honest statement of opinion by a layman cannot amount to a misrepresentation.
2. A is about to register a new company limited by shares, "A Ltd", in order to carry on a retail business. A has ordered a quantity of goods from a supplier "for and on behalf of A Ltd". Which of the following is correct?
A) A Ltd can ratify the contract following registration.
B) A is personally liable for the order.
C) A Ltd is liable to pay for the order as soon as it is registered.
D) The contract is void.
3. Lotl is a well-known supermarket chain that has recently come under fire for not encouraging diversity within the organisation.
Because of this, it has been making efforts to make the business more diverse.
Which of the following are ways Lotl might do this?
Select ALL that apply.
A) Import and sell food from all over the world.
B) Encourage people from all backgrounds and cultures to apply for vacancies.
C) Ensure that the company has an even split of male and female employees at all levels.
D) Ensure that their in-store signs are written in at least five different languages.
E) Ensure that it offers equal opportunities to both able-bodied and disabled people.
4. Which of the following is an 'interest stakeholder' in an organization?
A) Competitor
B) Customer
C) Government
D) Employee
5. Being able to be trusted by others to be dependable reflects the personal quality identified by the CIMA Code of Ethics as:
A) Respect
B) Traditionalism
C) Reliability
D) Transparency
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: B,C,E | Question # 4 Answer: A | Question # 5 Answer: C |




