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

1. In which of the following situations has a contract of employment arisen?

A) A verbal offer of work is made to Q at a given pay rate for specified services. The offer is not accepted by Q either verbally or in writing and Q does not turn up for work
B) A written offer of work is made to R which specifies the services required but omits the pay rate for the job. This is not accepted by R either in writing or verbally and R does not turn up for work
C) A verbal offer of work is made to S for the possibility of duties at a specified pay rate but the employer makes it explicit that, as the need for the services is not yet certain S is free to work elsewhere
D) A verbal offer of work is made to P at a given pay rate per hour for specified services The offer is not accepted by P either verbally or in writing but P turns up for work and performs the duties identified in the offer.

2. Which of the following statements is correct in relation to the civil law?

A) A tort is a civil wrong.
B) All civil cases commence in the County Court.
C) A breach of the civil law does not enable an injured party to claim compensation.
D) A person may be prosecuted for a breach of the civil law.

3. Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?

A) The separation of roles of Chairman and Chief Executive
B) The appointment of independent non-executive directors to the Board
C) The establishment of an audit committee
D) The appointment of a senior Government representative to the Board

4. Pablo and Paula are in discussions with a potential buyer over the sale of their house. They tell the potential buyer that if they want to purchase the house for the full amount of £200,000, they'll need to send a letter that confirms their offer by Friday. If they don't receive such a letter by then, they'll withdraw the house from the market.
Friday comes and no letter arrives. However, it turned out the potential buyer actually posted the letter on the Monday before, and it simply got lost in the post. The letter eventually turns up on the following Monday.
Baring this in mind, are Pablo and Paula legally obliged to sell their house?

A) Yes - The potential buyer can choose to accept Pablo and Paulo's price whenever he wants, providing that he hasn't already declined it.
B) No - They can decline the potential buyer's request at any time, regardless of when they received the letter.
C) No - Because they received the letter after the closing date they do not have to accept the potential buyer's offer.
D) Yes - Because the potential buyer sent the letter before the closing date.

5. In relation to offers, which of the following statements is correct?

A) Statements made in early negotiations cannot amount to offers.
B) Goods displayed on a supermarket shelf are deemed to be offers to sell
C) An item displayed in a shop window with a price tag is an offer to sell
D) An offer to sell goods can be made to the whole world

Solutions: