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Which of the following is INCORRECT in relation to directors' duties?

A.

Directors owe a duty to promote the success of the company.

B.

Directors' duties are codified in the UK Corporate Governance Code.

C.

Directors must act in accordance with the company's constitution.

D.

Directors' duties are owed to the shareholders as a whole.

Jo is employed as management accountant of a large retailer. Jo has been asked to call a supplier and promise settlement of their account 'next week'. Jo is aware that her employer will definitely not have sufficient funds available to make the payment. If Jo accepts the request, which of the following 'fundamental principles' of CIMA's Code of Ethics will be compromised?

A.

Integrity

B.

Objectivity

C.

Confidentiality

D.

Professional behavior

On the basis of the National Minimum Wages Act 1998, what is the age range for the lowest national minimum wage entitlement?

A.

workers aged 16-18

B.

workers aged 16-17

C.

workers aged 15-17

D.

workers aged 16-19

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:

A.

Personal and Professional values

B.

Corporate and Professional values

C.

Societal and Professional values

D.

Personal and Societal values

Which of the following is incorrect in relation to a reduction of capital by a private company?

A.

The company must pass a special resolution to authorize the reduction of capital.

B.

The reduction may affect the company's creditors.

C.

It is necessary for the company's Articles of Association to authorize a reduction of capital.

D.

The directors must make a solvency statement.

What can companies do in order to minimize the likelihood of future legislation?

A.

Maintain effective self regulation

B.

Insist on the highest standards of ethical behavior from their company and its employees

C.

Understand and address what the public expects of companies in terms of ethical behavior and social responsibilities

D.

All of the above

What is the rule in Foss v Harbottle (1843)?

A.

Where a wrong has been done to the company it is the company which should sue.

B.

Where a wrong has been done to the company it is the directors who should sue.

C.

Where a wrong has been done to the shareholders it is the company which should sue.

D.

Where a wrong has been done to the directors it is the company which should sue.

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.

A.

(i) only

B.

(ii) only

C.

(iii) only

D.

(ii) and (iii) only

Which of the following statements are correct in relation to an offer?

1. An offer may be made to the whole world

2. An offer cannot be withdrawn until the offeree has had the opportunity of accepting or rejecting the offer.

3. An item in a shop window marked "Special Offer" is not an offer in law.

A.

1 and 2 only

B.

1 and 3 only

C.

1 only

D.

2 only

Which of the following must an internal audit satisfy in order to be deemed independent? Select ALL that apply.

A.

The head of the audit must report to a high level within the organisation.

B.

The internal audit activity must be free from interference.

C.

The head of the internal audit must communicate and interact directly with the board of directors.

D.

Any problems identified during the audit should be reported.

E.

Action plans should be negotiated with management in order to address any identified problems.

If a business trades as “Exe and Co (Office Furniture)” which of the following is CORRECT?

(i) The business could be owned by a partnership

(ii) The business could be owned by a sole trader

(iii) The business could be owned by a private company limited by shares

A.

(i) only

B.

(i) and (ii) only

C.

(iii) only

D.

(i), (ii) and (iii)

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 

A.

(i) only

B.

(i) and (ii) only

C.

(i) and (iii) only

D.

(i), (ii) and (iii).

Which of the following statements in relation to companies is correct?

A.

A member of a public company limited by shares has a right to participate in the management of the company.

B.

A mam advantage of carrying on business through the medium of a private company limited by shares is that the company is not fully liable for its own debts

C.

A disadvantage of running a private company limited by shares is that it is much more bureaucratic than a sole tradership

D.

A public company limited by shares generally has less access to capital than a general partnership

SuperSole eventually decides to outsource its internal audit.

Which of the following are benefits it might experience from doing so?

Select ALL that apply.

A.

Flexibility to increase or reduce in size

B.

Readily available expertise

C.

Lower costs

D.

More independent auditing process

E.

Less time taken

F.

Less risk of confidential information leaking

According to Carroll's model of CSR, which of the following is TRUE of a company's legal responsibility?

A.

It provides guidance relating to philanthropic responsibility

B.

It equates with doing what is right. just and fair

C.

It provides a base line for operating within society

D.

It provides a rule book for ensuring a reasonable return for shareholders