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Which of the following terms can be defined as follows?
"...the generic way that organizations are run"
Mr A sent an email to Mr B offering to sell him some goods for $1.000 Mr B replied by email stating I'll buy the goods Payment will be made over the next 4 weeks." Mr B has now discovered that Mr A has sold the goods to Mr C. Which of the following is correct?
Which of the following is incorrect in relation to the remedy of liquidated damages?
Which of the following causes a charge to be void?
(i) A failure to register the charge at Companies House within 21 days of its creation.
(ii) A failure to register the charge at the company's registered office.
(iii) The issue of a charge to secure borrowing which is outside the directors' authority
Which of the following statements is INCORRECT?
(i) A counter offer has the legal effect of destroying the original offer and putting another offer in its place.
(ii) For an agreement to be valid at law, the offer and the acceptance must be in the same form.
(iii) Agreements made by email are unenforceable at law.
Which of the following are TWO reasons why new legislation might be introduced in response to corporate scandals?
Which of the following is correct in relation to international relations?
(i) International regulations are voluntarily entered into by commercial and professional bodies to standardize practices and procedure to make it easier to enter into international trading agreements.
(ii) International regulations which have been agreed by the professional bodies of different states are only binding on the members of those bodies or those who choose to adopt them.
(iii) International regulations may attain the force of law by being adopted by the legislatures of individual states
Which of the following does the CIMA Code of Ethics fundamental principle of integrity NOT involve?
B agreed in his contract that he would not work for a competitor of Gee Ltd for a period of 12 months after leaving the company's employment. On leaving Gee Ltd, B worked for Zed Ltd, a competitor of Gee Ltd. If the restriction in B's contract with Gee Ltd should be found to be reasonable, which of the following remedies is Gee Ltd entitled to?
(i) A decree of specific performance forcing B to comply with his contract with Gee Ltd.
(ii) Damages in respect of any loss caused by B's breach of contract.
(iii) An injunction to stop B working for Zed Ltd.
Which of the following is correct in relation to a company's ability to have a restricted objects clause in its constitution?
(i) A company may restrict its objects in its constitution
(ii) Any clause restricting the company's objects should be included in the company's articles of association
(iii) The shareholders may pass a special resolution to alter the company's constitution by including a clause which restricts the company's objects
How might an organization exercise ethical control over its staff? Select ALL that apply.
Which of the following is correct in relation to financial assistance for the purchase of its own shares provided by a private company?
P contracted to buy a computer from CD (Retailers) Ltd. The contract contained a term excluding liability for any breach of the condition implied by the Sale of Goods Act 1979 that the goods should be of "satisfactory quality".
Which of the following is correct?
Although no-one has reason to suspect, you have taken a violent dislike to a particular assurance client. This could severely affect your independence:
In the event of a conflict between European Law and French Law which will prevail?
Seb is auditing a large firm in the City. He wants to access the company's books and records, to be notified of any shareholder meetings and to ask the company's senior staff to produce certain documents that he feels
are necessary to audit.
However, the company he is auditing denies every one of these requests.
Should Seb's requests be granted?
You work for a chain of coffee shops who are proud of their sustainable credentials and have used their claim to recycle all of their disposable cups as part of their brand identity. An audit has revealed that staff in one region (West) are mixing these cups into normal waste and sending them to landfill in spite of the ethical code of practice of the company
Which TWO of the following might explain why the code has failed to promote the desired behavior?
Which of the following statements regarding companies limited by shares and general partnerships is correct?
Which of the following statements is correct?
(i) A term may be implied into a contract by statute.
(ii) A term may be implied into a contract on the ground that it is a trade custom.
(iii) A term may be implied into a contract by a court in order to give the agreement "business efficacy".
Which of the following is NOT one of the 'seven principles of public life', as defined by the Committee of Standards in Public Life?
Which of the following are correct in relation to supervisory and management boards of directors?
1 A supervisory board reports to the mangament board in respect of business policy and future strategy
2 A management board is usually made up entirely of executive directors
3 A supervisory board includes employee representatives.
Which of the following is correct?
(i) A contract for the sale of land must be in writing.
(ii) A consumer credit agreement must be in writing.
(iii) A contract of employment must be in writing.
You always take the time to be polite to colleagues and listen to the opinions of others, even if you might disagree with their views. Which TWO of the personal qualities identified by the CIMA Code of Ethics does this demonstrate?
Tom is a director of XYZ Ltd. The company is considering purchasing Tom's business for £200,000. Which of the following is incorrect?
Which of the following is correct in relation to the UK Corporate Governance Code?
(i) The Code gives rise to a disclosure requirement
(ii) Breach of the Code gives rise to criminal penalties
(iii) Breach of the Code gives rise to civil liability
While working as an accountant, you are asked to overlook certain irregularities in your company's accounts. This is likely to result in tensions described by which TWO of the following four options:
B Ltd has an issued share capital of 1,000 ordinary £1 shares. The board of B Ltd has resolved to alter the company's articles of association. Which of the following is correct?
(i) The articles may be altered by board resolution.
(ii) The articles may be altered by a written resolution of the shareholders.
(iii) The articles may be altered by a special resolution of the directors.
Being able to be trusted by others to be dependable reflects the personal quality identified by the CIMA Code of Ethics as:
Being accountable for one's actions and decisions reflects the personal quality identified by the CIMA Code of Ethics as:
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.
Danny holds 1%, Edward 2% and Fozia 3% of the issued share capital of Vee Ltd. Which of these shareholders, acting alone or together, hold the minimum percentage to entitle them to require the company to circulate a written statement of their views to all those entitled to receive notice of the forthcoming annual general meeting?
T contracted to buy a washing machine from AB (Retailers) Ltd for his personal use at home. The contract contained a term excluding liability for any breach of the condition implied by the Sale of Goods Act 1979 that the goods should be of "satisfactory quality". The contract was on AB (Retailers) Ltd's standard form contract.
Which of the following is correct?
(i) Conditions implied by the Sale of Goods Act 1979 cannot be excluded in any sale.
(ii) This is a consumer sale and the clause excluding liability is void.
(iii) This is a non-consumer sale and the clause is void unless reasonable.
Which of the following is INCORRECT in relation to directors' duties?
i. Directors who arrange for shares to be offered directly to their supporters in order to prevent a take-over bid are acting lawfully so long as they have the legal power to allot shares in the company's constitution.
ii. Directors may act in breach of their duties and still be complying with the UK Corporate Governance Code.
iii. Directors' duties are owed to the shareholders as a body and enforceable by the company.
A business that has an internal ethical code is likely to experience which of the following benefits? Select ALL that apply.
A, B and C carry on business in a general partnership. A has proved an unsatisfactory partner in that he is continually absent from work for no justifiable reason. B and C wish to expel A from the partnership. Which of the following is CORRECT?
Which of the following statements is correct in relation to private and public companies limited by shares?
Which THREE of the following statements are correct regarding the CIMA Code of Ethics for Professional Accountants?
To which of the following contracts does the Supply of Goods and Services Act 1982 apply?
(i) A contract with a joiner for the manufacture and supply of a cabinet.
(ii) A contract for the hire of a car.
(iii) A contract with a builder to construct an extension to a house.
Which of the following is an example of a safeguard created by the profession, legislation or regulation as opposed to a safeguard in the work environment?
Which TWO of the following options describe safeguards that the CIMA Code of Ethics states may eliminate or reduce threats to compliance with fundamental principles to an acceptable level?
Adam, Brian, Charles and David each held 25% of the issued share capital of ABCD Ltd. Adam has recently issued further shares to himself in order to increase his voting power. Which of the following is incorrect?
In the event of the directors of a company limited by shares ignoring a provision in its Articles of Association which is for the benefit of the shareholders, which of the following is correct?
X was employed by Bee Ltd as its senior design consultant. X contracted with Bee Ltd that, when his employment with the company ceased, he would not act in competition with it or solicit its customers. After X left Bee Ltd, he registered a company called Cee Ltd which immediately began working in competition with Bee Ltd and soliciting its customers. Bee Ltd complained to X about this conduct, but X stated that, as the work was being undertaken by Cee Ltd, a separate legal entity, X had not acted in breach of the agreement with Bee Ltd.
Which of the following statements is correct?
Which of the following type of committee is NOT required by the UK Combined Code?
Y is completing an internal audit work on the system to approve suppliers to JKL Company. Which of the following would NOT promote a sustainable approach to the company's relationship with it\suppliers?
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?
Which of the following statements is correct in relation to a misrepresentation?
Which of the following is CORRECT in relation to an alteration of a company’s articles of association?
(i) A copy of the resolution and the amended articles must be filed with the Registrar of Companies within 15 days of the date of the resolution.
(ii) The articles of association may be amended by an ordinary resolution with special notice.
(iii) An alteration of the articles cannot discriminate between the majority and minority shareholders.
Which of the following statements is incorrect in relation to a public company limited by shares?
Agency theory is often cited as an explanation for the development of corporate governance Which TWO of the following statements are correct?
According to CIMA, which TWO of the following are responsibilities of a professional accountant?
A group of business associates are about to register X Ltd as a company limited by shares. The associates wish to restrict the company's objects so that the company is only authorized to carry on the business of retailing computer hardware and software. Which of the following is correct?
A professional accountant's social responsibility relates to which TWO of the following?
Avoiding any action that discredits the profession relates to which CIMA Code of Ethics fundamental principle?
Company B wants to implement ethical control over its staff. It wants to do this by implementing a strong organisational culture.
Which of the following are ways in which the organisation could exercise control in regards to its organisational culture?
Select ALL that apply.
A business that behaves ethically may experience which of the following benefits; Select ALL that apply.
In relation to conditions and warranties, which of the following statements is correct?
Which of the following automatically causes a contract to become unenforceable?
(i) Where the contract has become frustrated.
(ii) Where the buyer was induced to enter into the contract by a fraudulent misrepresentation.
(iii) Where one of the parties has acted in breach of a warranty in the contract.
A company's board of directors is faced with an ethical dilemma. 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?
Which of the following is correct?
(i) The first directors are appointed upon the incorporation of the company.
(ii) A director is a person who occupies the position of director by whatever name called.
(iii) A shadow director is a person in accordance with whose directions or instructions the directors of the company are accustomed to act.
You work for a company based in a capital city that leases office space to other organizations. Which of the following corporate issues is not related to ethics or social responsibility?
Which of the following is NOT one of the fundamental principles of CIMA's Code of Ethics?
Which of the following is correct?
i. A company intending to issue new shares for cash must first offer them to the existing shareholders.
ii. A company may dispense with the requirement to offer new shares to existing shareholders by passing a special resolution.
iii. A company issuing shares for a non-cash consideration is not required to offer the shares to the existing members first.
You have been asked to be involved in negotiations for the potential acquisition of another company. It so happens that your spouse is on the board of directors of that company. This affects the CIMA Code of Ethics fundamental principle of:
Which of the following is normally not an implied term of a contract of employment?
You work for an international mining company. Which of the following corporate issues is NOT related to ethics or social responsibility?
Which TWO of the following are true of CIMA's conceptual framework approach to ethics?
A advertised his van for sale in the local newspaper at a price of £5,000.
In which of the following situations is a contract between A and B created?
Which TWO of the following are reasons why a company would choose to introduce a values based code of ethics?
Which of the following is incorrect?
(i) All contracts must be in writing.
(ii) A contract to sell land must be in writing.
(iii) A contract of employment must be in writing.
Shiny Steel is a steel manufacturer keen on increasing short-term shareholder interest. It has a number of factories in the country, which all have to abide by the new legislation that states carbon emissions shouldn't
exceed a particular limit.
Baring this in mind, which of the following might give Shiny Steel the best chance of increasing short-term shareholder interest?
Which THREE of the following are characteristics of Limited Liability Partnerships ("LLPs")?
Which of the following is correct in relation to the equitable remedy of rescission?
(i) Rescission is available in the event of any breach of contract
(ii) The victim of misrepresentation may automatically claim rescission
(iiI) The purpose of rescission is to return the parties to their pre-contract position.
Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?
Which of the following has overall responsibility for enforcing the Health and Safety at Work Act 1974 and its related legislation?
i. The Health and Safety Commission
ii. The Health and Safety Executive
iii. The Health and Safety Inspectorate
Cameron runs his own chain of ice cream shops. However, his business recently accrued a lot of debt due to a sharp rise in the price of milk, and he is now forced to shut the whole operation down.
Who is liable for the debt?
Which of the following remedies is available as of right in the event of a breach of contract?
(i) Specific performance.
(ii) Damages.
(iii) An injunction.
C has just set up her own practice and things are going well. She is also a single parent, so is reliant upon her income to pay her bills and support her family. One of her uncles recommends a new client to her. This client wants C to provide an accountant's report in support of his mortgage application. He insists there is no need for her to see the full details of his income. He suggests that C's uncle would be most displeased if she did not help him, and that she may potentially lose other potential clients.
This is a tension between C's:
Which of the following would be regarded as an issue of shares for an improper purpose?
(i) An issue of shares to enable the directors to maintain control of the board.
(ii) An issue of shares to prevent a take-over bid.
(iii) An issue of shares in return for a non-cash consideration.
TESTED 03 May 2024
