Section 12 of the Sale of Goods Act 1979 implies a condition into contracts for the sale of goods that the person selling the goods has the right to sell them. Which of the following is correct?
(i) The contracting parties may agree to exclude Section 12 from their contract
(ii) Section 12 applies to both consumer and non-consumer contracts for the sale of goods.
(iii) A breach of Section 12 entitles the purchaser of the goods to cancel the contract.
You work for a construction company. Which of the following corporate issues is NOT related to ethics or social responsibility?
Matty dreams of owning his own business but can't be bothered to follow the steps involved in setting one up.
What should he do?
L is a senior management accountant in a large and respected firm. He has found out that two of the partners of the firm are working unethically for clients who operate on 'the wrong side of the law'. L would like to draw this matter to the attention of the third partner, but he is concerned that he will either lose his job, or, if the scandal gets out, the firm will lose its reputation and clients as a result. He decides to do nothing. Is this an unethical thing to do?
Which of the following type of committee is NOT required by the UK Combined Code?
If a claim for unfair dismissal is successful, which of the following orders can be made by an employment tribunal?
i. re-instatement
ii. re-engagement
iii. compensation
C is a professional accountant He encounters an ethical dilemma in his role and wishes to seek help in resolving it. Which of the following would NOT be an appropriate source of advice?
Which of the following does the CIMA Code of Ethics fundamental principle of integrity NOT involve?
Jimmy wants to sell his scooter, so he puts an advert on the internet with a price of £50.
He quickly gets an offer for the full amount, but then decides that he doesn't want to sell his scooter after all!
The buyer complains and threatens to report jimmy to the police.
This doesn't worry Jimmy as he knows he is not legally obliged to sell his scooter. Why is this?
The holders of a certain minimum percentage of a company's issued share capital are entitled to require the company to circulate a written statement to those entitled to receive notice of the next annual general meeting. What is that minimum percentage?
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 business has been registered under the name ABC Ltd. Which of the following types of business organization must this be?
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.
Which of the following statements is correct in relation to equity?
(i) Equity was developed by the Court of Chancery
(ii) Equitable maxims were developed by lawyers
(iii) In the event of a conflict between equity and the common law, equity prevails
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?
Which of the following is correct in relation to Section 14 of the Sale of Goods Act 1979 which implies a term into contracts for the sale of goods that the goods supplied will be of “satisfactory quality.”
(i) A breach of Section 14 enables the innocent buyer to cancel the contract and claim damages.
(ii) The parties to a contract for the sale of goods can choose to exclude Section 14.
(iii) Section 14 applies to contracts for the sale of new goods only and does not apply to sales of second-hand goods
Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?
Brian is the registered owner of 500 shares in Exe Ltd. Which of the following statements is correct?
One of your colleagues has just been poached by a competitor. You have reason to suspect that he has provided his new employer with sensitive information about your company that could disadvantage your employer. This affects the CIMA Code of Ethics fundamental principle of:
Why are the principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior “fundamental”?
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:
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.
Demonstrating an attitude of esteem, deference, regard or admiration of others reflects the personal quality identified by the CIMA Code of Ethics as:
Which of the following are situations involving familiarity threats? Select ALL that apply.
Which of the 'fundamental principles' of CIMA's Code of Ethics is defined as follows?
"A professional accountant should not allow bias, conflict of interest or undue influence of others to override professional or business judgments"
Steve manages the accounts for a large software company. He's good at his job, though it has recently emerged that he is going through quite a messy divorce.
Why should the company's senior management be most concerned?
J is employed as management accountant of a large retailer. Jo has been invited to take a holiday 'all expenses paid' at a villa owned by the managing director of a supplier organization. If J accepts the invitation, which of the following 'fundamental principles' of CIMA's Code of Ethics will be compromised?
In regards to a claim of misrepresentation, which of the following must be proved to show that the defending party induced the other party into entering the contract?
Select ALL that apply.
Which of the following is NOT one of the fundamental principles of CIMA's Code of Ethics?
ABC plc has acted in breach of its health and safety obligations and this has led to a number of employees and members of the public being injured.
Which of the following is correct?
The breach could give rise to:
i. Civil claims on the part of the employees and members of the public
ii. Enforcement action by the Health and Safety Executive
iii. Criminal sanctions against ABC plc
lohn works as a management accountant for a law firm. He only got the job because he lied about his qualifications: he told the interviewers that he the required accountancy qualifications to do the job when he actually
didn't.
Now John's boss has found that John lied during the interview. Which of the following will almost certainly happen as a result?
Select ALL that apply.
In which of the following countries are employees represented at board level?
i. Germany.
ii. United States of America
iii. France.
In relation to registering a company limited by shares, which of the following is correct?
Timmy has just taken over as the managing director of a well-known manufacturing company.
He really wants to do a good job an ensure that the company maintains its positive reputation.
Baring in mind the five key principles of corporate governance, which of the following should Timmy do to ensure he does a good job?
Select ALL that apply.
Miss K is a newly qualified accountant working in a highly respected local accountancy firm headed by Mr R, who is a pillar of the community. One night, Miss K is at an out of town bar with friends, when she spots Mr R with Mrs E, a client of the firm. It is obvious they are having a secret affair. Is this an ethical issue?
Company X has a good CSR record, and ensures that its employees enjoy safe working conditions, reasonable work hours and are paid fairly Company Y is known to employ child laborers in the countries in which it operates, where the practice is not illegal Company X has entered into a point business partnership with Company Y to carry out a specific project. In order to comply with the OECD Guidelines, what best describes Company X's responsibilities?
Section 13 of the Sale of Goods Act 1979 implies a condition into contracts for the sale of goods that the goods supplied will correspond to the description. What remedies are available to the innocent buyer in the event of a breach of Section 13?
A was disqualified from driving but continued his employment as a driver for XYZ plc. The company discovered that A had lost his driving license and immediately dismissed him without notice.
Which of the following is correct?
i. As no notice was provided A's dismissal amounts to constructive dismissal.
ii. The employer was justified in dismissing A without notice as he was unable to continue his employment.
iii. A may make a claim for wrongful dismissal as, although his dismissal was justified, he was entitled to notice.
Which of the following would comply with best practice in accordance with the UK Corporate Governance Code in relation to Board conduct?
Which of the following is correctly stated to be an advantage of carrying on business via a company limited by shares?
(i) The liability of the company is limited.
(ii) In general the directors are not liable for the debts of the company.
(iii) The liability of the shareholders is limited.
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 of the following is incorrect in relation to the remedy of liquidated damages?
Which of the following is presumed not to be intended to create legal relations?
SuperSole eventually decides to outsource its internal audit.
Which of the following are benefits it might experience from doing so?
Select ALL that apply.
Kane is a management accountant for business in the City. When looking through the company's latest financial reports he finds that company has been paying far less tax than it should be.
After consulting the company's management, Kane discovers that the company had been deliberately paying less tax and are not interested in taking action to rectify it.
As Kane has done all he can to try and solve the issue himself, it's clear that he now needs to take steps to disassociate himself from the misleading information.
How might he do this?
Select ALL that apply.
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?
Immediately before being placed in creditors voluntary liquidation, Tom, the sole director of Bee Ltd, arranged for the company to make an early repayment of an unsecured loan made to Bee Ltd by his wife Anne. Which of the following is correct?
Which of the following correctly describes the circumstances in which directors may be held liable to contribute to the assets of insolvent companies in respect of "wrongful trading"?
A, B C and D are sole directors and shareholders of EFG Company each holding 25% of the shares in the company. The articles of association
of EFG Company state that "the directors cannot enter into any contract on behalf of the company exceeding $30,000 without the agreement of all the shareholders’’.
B contracted on behalf of the company for $40,000 with Y Company without the agreement of the other shareholders. Which of the following is correct?
1. Y Company may enforce the contract against EFG Company
2. A, C and D may obtain an injunction to stop the contract being canted out
3. B may be liable to EFG Company for breach of duty.
Which of the following statements would amount to indirect discrimination in the workplace?
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?
Which of the following statements correctly defines the ethics of utilitarianism?
S is Assistant Management Accountant for a large telecommunications company. S has become aware that the company is paying fees to those government ministers responsible for the regulation of the telecommunications industry and for authorizing large public contracts. S is concerned that this is unethical, so she mentioned it to the Finance Director during her most recent appraisal. The Director seemed amused at her concern and said that such a situation was 'perfectly normal'.
Which TWO of the following would it be appropriate for S to do?
Wye Ltd is considering appointing Anne as a director of the company. Which of the following is incorrect?
(i) If Anne is an un-discharged bankrupt, she cannot act as a company director.
(ii) If Anne is the subject of a disqualification order, she cannot act as a company director.
(iii) If Anne has already been appointed a director of another company, she cannot also act as a director of Wye Ltd.
You are happy to be held accountable for your actions and hope that others can trust and depend upon you. Which TWO of the personal qualities identified by the CIMA Code of Ethics does this demonstrate?
Who is entitled to sue under Section 994 of the Companies Act 2006, which empowers the court to grant a remedy in the event of the company's affairs being conducted in a manner "unfairly prejudicial to the interests of members…"?
In which THREE of the following situations might professional accountants be required or permitted to disclose confidential information relating to their employer?
Which of the following are situations involving conflicts of interest? Select ALL that apply.
In relation to business names which of the following is CORRECT?
(i) Any business may trade under a business name.
(ii) If a business name is used the name of the owner of the business must be disclosed.
(iii) The business name of a private limited company must end with the word “Limited” or “Ltd”.
J is at his company's reception desk when the promotions manager of a new restaurant and bar nearby hands him a number of vouchers for cheap meals and drinks. At the promotion manager's request, J agrees to share out the vouchers among his company's employees. J does not earn much and is tempted to keep the vouchers for himself and his friends. Is this an ethical issue and why?
S Ltd has an issued share capital of 1000 ordinary shares of £1 each. Some of the shareholders would like to change the name of the company. What is the minimum number of votes which must be cast in favor of the resolution to make it effective?
J and K are the only shareholders in JK Ltd, each holding 500 fully paid ordinary £1 shares. J is the company's only director and K the company secretary. The company has been placed in creditors’ voluntary liquidation on the grounds that it is unable to pay its debts.
Which of the following is correct?
T is a senior accountant, but knows he needs to update himself on recent changes in accounting practice. He has been too busy; his manager is off sick and T is taking responsibility for his work load. T decides to let his CPD slide. Another year won't matter. Is this an ethical issue?
(i) In general a person is assumed to know of a clause of which he has been given reasonable notice at or before the time of the contract.
(ii) In general a person cannot rely on a clause brought to the other party's attention after the contract has been concluded.
(iii) In general a person cannot be bound by a clause written in small print.
Choose one of the following.
Which of the following auditors would need to issue a disclaimer of opinion? Select ALL that apply.
S is management accountant for a small construction company. The company's financial year is due to end in a few weeks. The company has a number of large construction projects, one of which is behind schedule. One of the directors of the company has asked S to raise an invoice for a progress payment that is due on completion of the next phase of the contract. S knows that this phase will not be complete until after the year end, but the director says that the client needs the invoice now, to allow them to process it in time for payment when the phase is complete.
Which THREE of the following would it be appropriate for S to do?
Which of the following are the TWO main differences between the structure and function of company boards in Germany and the UK?
In the event of a breach of contract, what is the purpose of damages?
(i) To punish the contract breaker.
(ii) To compensate the innocent party.
(iii) To ensure that the innocent party makes a profit.
Completing work within established deadlines reflects the personal quality identified by the CIMA Code of Ethics as:
Which of the following is INCORRECT in relation to the United States of America (USA)?
(i) In the event of a conflict between state and federal legislation, state legislation is superior.
(ii) The USA has a federal system of government.
(iii) Legislation is enacted by Congress.
Which of the following best describes "independence of mind" as referred to in CIMA's Code of Ethics
Paul has been held personally liable to contribute to the assets of P Ltd as a result of his "fraudulent trading" under Section 213 of the Insolvency Act 1986. The court is about to disqualify Paul from acting as a director. What is the maximum period for which he may be disqualified?
The IFAC has eight main drivers of sustainable corporate success. Which of the following are included in the eight mam drivers?
1, Innovation and adaptability
2. Effective leadership and strategy.
3. Board control and responsibility
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TESTED 17 May 2024
