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  • Exam Name: Fundamentals of Ethics, Corporate Governance and Business Law
  • Last Update: 27-May-2024
  • Questions and Answers: 661
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BA4 Questions and Answers

Question # 1

You work for a manufacturing company and are told that one of the line managers made a genuine mistake that led to the discharge of waste material into a local river. Your managing director says that the company cannot afford a large fine and demands that no one reports the waste spillage or mentions it again. Is this an ethical issue and why?

A.

Yes - but only if the waste causes damage to the local environment

B.

Yes - the manager who created the spill has behaved unethically and should be disciplined

C.

Yes - the company has a duty to report something that might breach environmental legislation and could cause environmental damage

D.

No - the leak was a mistake, so this is not an ethical issue

Question # 2

Which of the following are reasons why regulatory frameworks may differ between countries: Select ALL that apply.

A.

Differences in law and tax

B.

Differences in history and culture

C.

Differences in types of shareholder

D.

Difference in language

E.

Difference in GDP

Question # 3

Which of the following would comply with best practice in accordance with the UK Corporate Governance Code in relation to Board conduct?

A.

The Board of SSS a public company limited by shares, consists of four executive directors and five non-executive directors. The Board is headed by Mr I who is both CEO and Chairman The non-executive directors do challenge the strategic direction of the company and their opinions are considered and acted upon

B.

The Board of TSD, a public company limited by shares, consists of four executive directors and three non-executive directors. The Chairman, Mr C is the brother of the CEO Miss K The board meets ten times a year The board meetings are dominated by the siblings but the final decision is generally taken by the CEO

C.

The Board of END, a public company limited by shares, consists of four executive and five non-executive directors. The Board is headed by its Chairman, Miss A and the CEO is Miss B. The board has developed clear divisions of responsibility and consequently only meets in full once a year to approve the financial statements

D.

The Board of DDE, a public company limited by shares, consists of four executive and five non-executive directors The Board is headed by its Chairman Mr A and the CEO is Mr H. The board meets ten times a year. The non-executive directors do challenge the strategic direction of the company and their opinions are considered and acted upon

Question # 4

What is a fundamental attribute of a competent accountant?

A.

Ability to exercise good judgment

B.

Ability to communicate effectively

C.

Ability to calculate correctly

D.

Ability to be efficient

Question # 5

All policies for governance and social responsibility are ultimately rooted in an organization's:

A.

Values and code of ethics

B.

The Board

C.

Stakeholder relationships

D.

The Government

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