EMT Practice Test

1. Question Content...

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Question1: Governance denotes the generic way an organization is run with particular emphasis on:

Question2: Members of private companies often enter into so-called "shareholder agreements". Which of the following elements of a shareholder agreement are NOT true of articles of association?
(i) A shareholder agreement is a private document not open to public inspection.
(ii) All the provisions of a shareholder agreement have contractual force.
(iii) The terms of a shareholder agreement can only be amended by unanimous consent and not by majority agreement.

Question3: Who is entitled to sue the directors for a breach of statutory duty?

Question4: In Germany the two-tier board structure is used by many limited liability companies. A two-tier board structure is made up of a Management Board and which other organ?

Question5: Which TWO of the following are examples of safeguards that may increase the likelihood of identifying or deterring unethical behavior?

Question6: Which of the following does the IFAC Code of Ethics establish?

Question7: In relation to international regulations, which of the following is correct?
i. International regulations seek to establish common standards between professions practicing in different States so as to further international cooperation and agreement.
ii. International regulations agreed by the professional bodies of different States have the force of international law.
iii. International regulations which harmonies standards and procedures may be incorporated into contracts by commerce and the professions.

Question8: You work for a clothing retailer. Which of the following corporate issues is NOT related to ethics or social responsibility?

Question9: How can values become part of a company's DNA? Choose TWO of the following options.

Question10: Which of the following may be liable to contribute to the assets of the company in the event of the company carrying on business at a time when it appeared that insolvency was inevitable?

Question11: P is an accountant working in a business Which of the following circumstances might create a self- interest threat for P in her professional role?

Question12: Evidence suggests that during a recession, companies with a clear sense of ethical direction will:

Question13: Your boss knows that you will always strive to deliver a project on time and on budget. Which TWO of the personal qualities identified by the CIMA Code of Ethics does this demonstrate?

Question14: Which of the following requires the approval of 75% of all the company's shareholders who are entitled to vote?

Question15: Which of the following accountants have breached CIMA's ethical principle of professional behaviour:
Select ALL that apply.

Question16: You work for a publishing company. Which of the following corporate issues is NOT related to ethics or social responsibility?

Question17: Which ONE of the following statements is correct in relation to the UK Corporate Governance Code?

Question18: Which of the following statements is INCORRECT?
i. A contract is a voluntary agreement whereas obligations in the tort of negligence are imposed by the state.
ii. Damages are only available for breach of contract and breach of the tort of negligence if damage, injury or loss has been suffered by the claimant.
iii. A contract breaker is liable whether or not he is at fault whereas to be liable in the tort of negligence the defendant must have been at fault.

Question19: 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?

Question20: Which of the following statements is correct in relation to business organisations?

Question21: Which of the following is correct in relation to loans to directors of a public company?

Question22: Which of the following CANNOT be appointed as the sole director of a private company limited by shares?
(i) A person over the age of 70 years
(ii) A person under the age of 16 years
(iii) A private company limited by shares

Question23: Which of the following remedies is not available for a breach of a contract to provide personal services?

Question24: Zed plc wishes to issue £500,000 of shares on terms that the holders will receive a dividend before the other shareholders and they will be bought back by the company in 12 months' time. Which of the following best describes these shares?

Question25: 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.

Question26: Jo is employed as management accountant of a large retailer. Jo has been asked to make a payment to a bogus supplier that she believes would constitute money laundering. If Jo accepts the request, which of the following 'fundamental principles' of CIMA's Code of Ethics will be compromised?

Question27: Which of the following does a professional accountant NOT have a duty to stay up to date on?

Question28: Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?

Question29: Which of the following is not a source of English law?

Question30: 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.

Question31: Which of the following statements is correct in relation to the "maintenance of capital" principle?

Question32: Which of the following is incorrect?

Question33: Dilemmas arise when:

Question34: Demonstrating politeness and good manners towards others reflects the personal quality identified by the CIMA Code of Ethics as:

Question35: Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?

Question36: 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?

Question37: Which one of the following reasons is not automatically an unfair reason for dismissal?

Question38: R and P are the only shareholders in RP Ltd, each holding 100 ordinary £1 shares. They have both paid half the nominal value of the shares. The company has been placed in creditors' voluntary liquidation on the ground that it is unable to pay its debts.
Which of the following is correct?

Question39: Which of the following is NOT one of the fundamental principles of CIMA's Code of Ethics?

Question40: Which of the following countries does not have a written constitution?

Question41: Which of the following is incorrect?

Question42: Which of the following is correct if a promoter orders goods or services on behalf of a company limited by shares which is not yet registered?
(i) The promoter is personally liable for the order.
(ii) The promoter and the company are jointly liable for the order.
(iii) If the company ratifies the order after its registration, the company is liable and the promoter's liability for the order ceases.

Question43: Which of the following are reasons why regulatory frameworks may differ between countries: Select ALL that apply.

Question44: All policies for governance and social responsibility are ultimately rooted in an organization's:

Question45: Which of the following statements are correct?
(i) A claim for unfair dismissal must be made to an industrial tribunal within 3 months of the effective date of termination.
(ii) A claim for wrongful dismissal must be made to an industrial tribunal within 6 years of the effective date of termination.
(iii) A claim for wrongful dismissal must be made to an industrial tribunal within 3 months of the effective date of termination.

Question46: B was an employee of Exe plc but his line manager made it practically impossible for him to continue his employment. B resigned without giving Exe plc any notice as required by his contract of employment. Which of the following is correct?

Question47: 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?

Question48: Acting diligently and in accordance with applicable technical and professional standards demonstrates the CIMA Code of Ethics fundamental principle of:

Question49: Which of the following is the responsibility of the Chairman, according to the UK Corporate Governance Code?

Question50: After the Companies Act 2006, which of the following is correct in relation to a reduction of capital by a public company?
(i) If the reduction results in the company no longer having the authorized minimum capital for a public company, it may be necessary to re-register as a private company.
(ii) The Articles of Association may restrict the company's ability to reduce capital.
(iii) The reduction must be approved by the court.

Question51: Which of the following identifies criminal as opposed to civil proceedings?

Question52: Which of the following statements suggests that A is an employee in relation to the work he carries out for BCD Ltd?
i. He is required to provide his own tools.
ii. He is required to carry out his work personally and is not free to send a substitute.
iii. He is in receipt of pay after income tax has been deducted under PAYE.

Question53: 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.

Question54: Which TWO of the following are true of CIMA's conceptual framework approach to ethics?

Question55: Which of the following is correct?

Question56: Which of the following deal with most criminal matters in China?

Question57: Which of the following best describes "independence of mind" as referred to in CIMA's Code of Ethics

Question58: Which of the following is a 'financial stakeholder' of an organization?

Question59: How might an organization exercise ethical control over its staff? Select ALL that apply.

Question60: 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

Question61: Which ONE of the following resolutions is no longer legally effective?

Question62: Articles of association regulate the relationship between:

Question63: Which of the following is INCORRECT regarding the differences between a general partnership and a company limited by shares?
(i) Both a partnership and a company are formed by registration with the Registrar of Companies.
(ii) All partners are agents of the firm and all directors are agents of the company.
(iii) All partners are fully liable for the firm's debts and the company is fully liable for its own debts.

Question64: 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".

Question65: B was an employee of Exe plc but his line manager made it practically impossible for him to continue his employment. B resigned without giving Exe plc any notice as required by his contract of employment. Which of the following is correct?

Question66: Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?

Question67: Which of the following does NOT describe the responsibilities of the audit committee?

Question68: Which of the following are cases where the veil should be lifted? Select ALL that apply.

Question69: Which of the following is correct?
(i) A contract of guarantee is unenforceable unless it is evidenced in writing.
(ii) A contract to sell land must be in writing.
(iii) A contract of employment must be in writing.

Question70: 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?

Question71: Which of the following are TWO reasons why new legislation might be introduced in response to corporate scandals?

Question72: There are several different schools of ethics. Which of the following best represents the ethical approach adopted by the accountancy profession?

Question73: Which of the following is INCORRECT in relation to corporate governance in the UK?

Question74: 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.

Question75: Working late one evening, you see a colleague copying information on to series of CD Roms. He tells you that software is too expensive for him to afford for his home computer but that he needs the software for his own personal use and in case he might take work home at some point. Is this an ethical issue and why?

Question76: According to Carroll's model of CSR, which of the following is TRUE of a company's legal responsibility?

Question77: Which of the following is NOT an obligation imposed on all professional accountants by the principle of objectivity?
Not to compromise their professional or business judgment because of:

Question78: Which of the following is NOT a correct distinction between shares and debentures?

Question79: CIMA's report on 'Practical Proposals to Improve Corporate Governance Disclosure' explores a range of ideas Which of the following statements is correct?

Question80: Which of the following is incorrect in relation to Shari'ah law?

Question81: Which of the following is INCORRECT?

Question82: 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.

Question83: Agency theory is often cited as an explanation for the development of corporate governance Which TWO of the following statements are correct?

Question84: You work for a pharmaceutical company and have discovered a series of substantial and unpublicized gifts to specific university departments. You investigate further and find that all of the university departments published research into your company's products within a year of receiving the gift. Every piece of research is favorable to your company and none identifies any financial link with your organization. Is this an ethical issue and why?

Question85: Which of the following is INCORRECT?

Question86: A company's board of directors is found to have committed widespread fraud and engaged in a wide range of unethical practices. Which of the following is the LEAST likely consequence of this?

Question87: F knows from preparing the accounts that the company she works for is going to have to make redundancies due to the recession. She also knows that, despite the recession, the Managing Director continues to enjoy lavish perks and even uses a private jet. What should she do?

Question88: 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.

Question89: According to the CIMA Code of Ethics, a professional accountant should not be associated with reports, returns, communications or other information where they believe that the information:

Question90: Where a countries' rules protect whistleblowers. they usually only do so where there has been a
"qualifying disclosure" Which of the following statements best describes the minimum level of information which a whistleblower needs to have to make a "qualifying disclosure"?

Question91: Which of the following is NOT one of the fundamental principles of CIMA's Code of Ethics?

Question92: 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?

Question93: Which of the following is INCORRECT in relation to directors' duties?

Question94: Which of the following describes a principles-based approach to ethical standards in an organisation?
The objective behind the approach is to:

Question95: Which of the following is the superior source of law?

Question96: Which THREE of the following are characteristics of Limited Liability Partnerships ("LLPs")?

Question97: You work for an airline company and discover a series of regular payments made to a lobbying group that campaigns to allow people freedom to fly as and when they choose without being taxed for contributing to global warming. The group's website includes specific commentary that claims to 'expose the myth of global warming'. Neither your company nor the lobbying group (which describes itself as
'independent') mention the financial link between your organizations. Is this an ethical issue and why?

Question98: Being able to be trusted by others to be dependable reflects the personal quality identified by the CIMA Code of Ethics as:

Question99: The body responsible for reviewing the operations of the accounting profession worldwide is:

Question100: 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.

Question101: The distinction between an employee and an independent contractor is important because only an employee:
i. is given statutory protection in relation to employment rights.
ii. is subject to the deduction of income tax and national insurance under the PAYE system.
iii. can make the employer vicariously liable for his/her torts.

Question102: In furtherance of their duty to promote the success of the company under Section 172 of the Companies Act 2006, the directors are required to take account of amongst others, the company and its members, employees and suppliers.
Which of the following can enforce this duty against the directors?

Question103: Faegan and Fabian run their own business selling expensive shoes. The business is a general partnership, so both Faegan and Fabian have equal authority within it.
Recently, the business has grown very large. Because of this, one of their friends suggests getting that they have their accounts audited.
Are they legally obliged to do this?

Question104: Which TWO of the following are reasons why a company would choose to introduce a values based code of ethics?

Question105: In relation to corporate governance, which of the following statements best describes the situation in the UK?

Question106: B is a director and shareholder in Cee Ltd. Which ONE of the following is INCORRECT?

Question107: Which of the following statements is correct?

Question108: B has been employed by Wye Ltd for 10 years. His contract of employment states that, if either Wye Ltd or B wishes to terminate the contract, each party must give the statutory minimum period of notice.
Which of the following statements is correct?

Question109: Which of the following is incorrect?

Question110: Which of the following is INCORRECT in relation to business names?

Question111: Exe Ltd has five members. A has 90% of the shares and the other four members holds 2.5% of the shares each.
Which of the following is correct in relation to the calling of a general meeting on short notice?

Question112: Which TWO of the following are NOT directly relevant to a system of professional ethics?

Question113: Which of the following is CORRECT in relation to a Limited Liability Partnership ("LLP")?
(i) An LLP is formed by registration with the Registrar of Companies
(ii) Unlike the articles of a company the internal rules of an LLP are not available for public inspection (iii) An LLP is liable to pay corporation tax on its profits

Question114: Which of the following is an 'interest stakeholder' in an organization?

Question115: Which of the following reasons for dismissal are NOT deemed to be automatically unfair?

Question116: Which of the following are guilty of skimming? Select ALL that apply.

Question117: Which of the following statements is correct?

Question118: James works for a large company in the City. He likes working there, though he has just identified an issue of fraud within the company.
He has double-checked the facts, deduced that the fraudulent activity is both unethical and illegal, identified a number of ethical principles that have been breached and identified who is involved and who could be affected.
What should he do next?

Question119: Which of the 'fundamental principles' of CIMA's Code of Ethics is defined as follows?
"A professional accountant should comply with relevant laws and regulations and should avoid any action that discredits the profession"

Question120: Being accountable for one's actions and decisions reflects the personal quality identified by the CIMA Code of Ethics as:

Question121: The fraud response is a key aspect of fraud risk management within an organisation. Which of the following does NOT describe the responsibility of key personnel within this plan?

Question122: In relation to the Unfair Contract Terms Act 1977, which of the following is correct?
(i) A clause which attempts to exclude liability for death or personal injury caused by negligence is only valid if it is reasonable.
(ii) A clause which attempts to exclude liability for damage to property is void unless it is reasonable.
(iii) The Unfair Contract Terms Act applies to contractual terms and to occupiers' liability.

Question123: Y has an opening at his company for a trainee accountant. His nephew is just about to leave school, and Y receives a call from his sister suggesting that her son should get the job. Y's firm has a strict policy with regards to the employment of family members, especially in finance departments. But for Y, looking after his family is very important, and he is sure he will be an excellent staff member. Y has an ethical dilemma because there is tension between:

Question124: Which of the following types of committee is NOT required by the UK Corporate Governance Code?

Question125: Miss B is working closely with Mr L to deliver an important report on the efficiency of Mr L's department. They have had to work late together several times, and last night they went out to dinner afterwards. Miss B is starting to think she may have feelings for Mr L.
Could her independence be called into question?

Question126: 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.

Question127: You work for a pharmaceutical company. Which of the following corporate issues is NOT related to ethics or social responsibility?

Question128: The IFAC Code of Ethics applies:

Question129: Which of the following statements refer to the Sarbanes-Oxley Act?

Question130: Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?

Question131: Which of the following statements is TRUE in relation to ethical dilemmas?

Question132: Which of the following is incorrect in relation to the remedy of damages?

Question133: According to the CIMA code of ethics, if appropriate safeguards cannot be identified to address threats to compliance with fundamental principles, a professional accountant should:

Question134: SuperSole is a large shoe company that sells its products all over the world. It has many factories and stores in many different countries, and its yearly revenues often exceed £100 million. The company is also listen on the stock exchange.
Should SuperSole have its own internal auditing department?

Question135: Alongside technical competence what, for example, should the management accountant ask themselves?

Question136: Which of the following is correct in relation to corporate governance in the UK?
(i) If a listed public company in the UK fails to comply with the UK Corporate Governance Code, the company and the board may be prosecuted by the Financial Services Authority.
(ii) The duties of directors are codified in the Companies Act 2006 and breaches are enforceable by the company.
(iii) The ability of the majority of shareholders to dismiss a director for any reason whatsoever is the main sanction provided by the UK Corporate Governance Code.

Question137: In which of the following situations has a contract of employment arisen?

Question138: Which of the following are situations involving conflicts of interest? Select ALL that apply.

Question139: Which of the following is incorrect in relation to the criminal law?

Question140: The Global Reporting Initiative (GRI) has produced Sustamability Reporting Guidelines, setting out categories and aspects which should be addressed through sustainable reporting.
Place the GRI categories next to the appropriate aspect of sustamability below.

Question141: Which of the following is normally not an implied term of a contract of employment?

Question142: ABC Ltd has entered into a contract with DEF Ltd. The contract provides that breach a particular term entitles the innocent party to terminate the contract. What is the legal status of that term?

Question143: Seller Ltd is a wholesaler of electrical goods which it sells to retailers only Which one of the following statements is correct in relation to the exclusion of the conditions which are implied into contracts for the sale of goods by sections 12 to 15 of the Sale of Goods Act 1979?

Question144: Which of the following terms can be defined as follows?
"...the system by which companies are directed and controlled"

Question145: Which of the following statements is correct?
(i) A wrongful dismissal cannot also be an unfair dismissal.
(ii) An unfair dismissal can also be a wrongful dismissal.
(iii) An unfair dismissal must also be a wrongful dismissal.

Question146: Tee Ltd has contracted to use Vee Ltd's "Grand Hotel" for a business conference. Which of the following would not be regarded as a valid excuse for Vee Ltd for the unavailability of the hotel on the agreed date?
(i) The hotel was closed due to flood damage.
(ii) The hotel was double booked.
(iii) The hotel manager had arranged to have the hotel redecorated; the decorators had failed to complete the work by the agreed date.

Question147: Which of the following statements is correct?

Question148: Independence of mind allows a professional accountant to:

Question149: Which of the following is NOT one of the fundamental principles of CIMA's Code of Ethics?

Question150: Which of the following types of board committee are recommended by the UK Corporate Governance Code?
(i) Nomination Committee
(ii) Audit Committee
(iii) Quality Assurance Committee

Question151: Which of the following is not a legal person?

Question152: The articles of association of Zed Ltd provide that Z is to be an executive director for life. Zed is also a shareholder in the company.
Which ONE of the following is CORRECT?

Question153: Which ONE of the following business organizations could be used by Tom to carry on a business consultancy on his own account?
(i) A private company limited by shares
(ii) A sole tradership.
(iii) A limited liability partnership

Question154: If a professional accountant believes that he or she will not be able to comply with all the legal frameworks, regulations and standards for business in a particular circumstance, what does he or she have a duty to do? Please select TWO of the following:

Question155: 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.

Question156: Why does life-long learning require commitment? Choose TWO options.

Question157: B was employed by CDE Ltd and was dismissed. B claimed unfair dismissal and requested a written statement of reasons for his dismissal. Within what period must CDE Ltd comply with this request?

Question158: Regarding auditor remuneration, a self-interest threat to professional competence and due care is created if

Question159: A manufacturing company has a policy of only buying raw materials which are produced within a 100 kilometer radius of its factory. This is an example of what aspect of CSR?

Question160: 'Remuneration' is one of the main principles in the Corporate Governance Code. Which of the following is NOT best practice under the 'Remuneration' principle?

Question161: GHI Ltd has contracted with JKL Ltd. If JKL Ltd acts in breach of a condition, which of the following is correct?

Question162: 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.

Question163: In relation to contractual performance, which of the following is incorrect?

Question164: Exe Ltd was registered in 1980 and has an objects clause in its Memorandum of Association. What is the current status of Exe Ltd's objects clause?

Question165: Members of the accountancy profession are expected to demonstrate certain personal qualities and virtues such as 'respect' Which of the following is an example of the demonstration of the virtue of respect?

Question166: Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?

Question167: Which of the following is correct?
(i) The Court of Appeal is bound by obiter dicta of the Supreme Court.
(ii) The High Court is bound by a Supreme Court ratio decidendi.
(iii) A ratio decidendi of the Court of Appeal is binding on the High Court.

Question168: Ethical dilemmas can arise where there is tension between:

Question169: Karl has been offered a compensatory award after a court ruled that he had been unfairly dismissed by his former employer.
He is 45 and had been working for the company for 18 years.
For his basic reward, how many weeks' pay should he receive?

Question170: 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?

Question171: Which of the following terms can be defined as follows?
"...the generic way that organizations are run"

Question172: You have been charged with the task of reviewing the CSR report for your company, GHI. Which of the following aspects of the report represent a lack of compliance with the Global Reporting Initiative G4 Sustainability Reporting Guidelines?

Question173: Ethical dilemmas can arise where there is tension between:

Question174: Which of the following statements is correct?
(i) In the event of a conflict between English Law and European Law, English Law prevails.
(ii) The Supreme Court is the highest court in the United Kingdom.
(iii) The High Court is bound by a ratio decidendi of the Supreme Court.

Question175: 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?

Question176: 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"

Question177: A distinguishing mark of the accountancy profession is its acceptance of the responsibility to act in the public interest Therefore:

Question178: Which of the following types of committee is NOT required by the UK Corporate Governance Code?

Question179: Which of the following is a common law remedy?

Question180: A company wants to let its employees know that fraud will not be tolerated. It also wants to inform them of the consequences of committing fraud.
Which of the following would best achieve this?

Question181: The code of ethics of the professional body to which M belongs is very clear about the importance of non-discrimination on the grounds of race, gender, sexual orientation and religion. But, because of her particular religious convictions, M believes that homosexuality is wrong. This is an example of a tension between:

Question182: 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?

Question183: Which of the following are situations involving familiarity threats? Select ALL that apply.

Question184: Which of the following is correct?
(i) A decision of the Supreme Court is binding on all lower courts which are called upon to decide a case based on similar material facts.
(ii) If there is a conflict between European Law and English law, European Law prevails.
(iii) Parliament may delegate authority to the government to make law.

Question185: 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?

Question186: As a general rule, what period of continuous employment is required before a person can make a claim for unfair dismissal?

Question187: How does CIMA support its members in their continual personal improvement?

Question188: In 2011 Exe Bank plc granted a loan of £200,000 to Wye Ltd secured by a fixed charge over the company's land and a floating charge over all the company's other assets. Wye Ltd remains solvent but has now failed to meet its monthly repayments for three months.
Which of the following options are available to Exe Bank plc?
(i) Sue Wye Ltd for breach of contract.
(ii) Appoint an administrator
(iii) Petition for the compulsory winding up of Wye Ltd.

Question189: Being offered gifts and hospitality can give rise to threats to compliance with fundamental principles.
Which of the following statements is NOT in accordance with the CIMA Code of Ethics?

Question190: Which of the following must be satisfied for an employee to claim wrongful dismissal?
(i) The employer terminated the contract without notice, and was not justified in doing so.
(ii) The employee must have at least 12 months' continuous employment.
(iii) The dismissal was not for reasons of conduct, capability, redundancy or some other substantial reason.

Question191: Which of the following type of committee is NOT required by the UK Combined Code?

Question192: Which of the following statements is correct?
(i) The Articles of Association of a private company limited by shares may be altered by special resolution.
(ii) The Articles of Association of a private company limited by shares may be altered by a written resolution.
(iii) The Articles of Association of a private company limited by shares may be altered by an ordinary resolution.

Question193: Which of the following is incorrect?

Question194: Which ONE of the following is NOT a personal consequence of unethical behavior?

Question195: Which of the following is incorrect in relation to equitable remedies?

Question196: 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

Question197: Maintaining professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service demonstrates the CIMA Code of Ethics fundamental principle of:

Question198: Which of the following statements are correct in relation to the purpose of the OECD principles of corporate governance?
1. The principles are regarded by OECD members as representing a common basis essential for the development of good corporate governance practice
2. The principles are intended to be a substitute for individual government's proposals for governance best practice.
3. The principles are intended for the use of OECD members only.

Question199: Which ONE of the following is needed to solve ethical problems?

Question200: The International Accounting Education Standards Board has published a document titled "Approaches to the Development and Maintenance of Professional Values, Ethics and Attitudes in Accounting Education Programs'", which provides guidance about the personal qualities needed by accountants to meet the expectations of the public The particular qualities which it identifies are

Question201: Which ONE of the following most accurately describes corporate governance?

Question202: Ethical dilemmas can arise where there is tension between:

Question203: Which of the following is correct?
(i) The provisions of the Memorandum of Association do not form a contract between the members and the company.
(ii) The provisions of the Articles of Association form a contract between the members and the company.
(iii) One member may sue another directly on the provisions in the Articles of Association which contain ordinary membership rights.

Question204: On the basis of the National Minimum Wages Act 1998, what is the age range for the lowest national minimum wage entitlement?

Question205: Which of the following is correct?

Question206: Which of the following statements regarding companies limited by shares and general partnerships is correct?

Question207: What can companies do in order to minimize the likelihood of future legislation?

Question208: A professional accountant's social responsibility relates to which TWO of the following?

Question209: Paul is asked to work for a company that runs online casinos, but he has a deep seated conviction that gambling in any form is immoral. This dilemma is an example of a tension between:

Question210: Which of the following is correct?
(i) All courts below the Supreme Court may refer a case involving European Law to the European Court of Justice for a preliminary ruling.
(ii) The Supreme Court must refer a case involving European Law to the European Court of Justice for a preliminary ruling.
(iii) An English court is not bound to give effect to a preliminary ruling of the European Court of Justice.

Question211: 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?

Question212: In relation to directors, which of the following statements is incorrect?

Question213: Which of the following statements is correct?

Question214: Which of the following options are correct in relation to a contract of employment?
1. The contract must be in writing
2. An employee's duty to act with reasonable care and skill is implied into the contract
3. An employer's duty to provide a inference is implied into the contract

Question215: The body responsible for reviewing the accountancy profession worldwide is:

Question216: Advocacy threats to compliance with fundamental principles are described as threats that may occur

Question217: S is management accountant for a small retail company. S has discovered a possible fraud in the purchasing department. The manager of that department has told S that he is aware of the fraud and will 'deal with it'.
Which ONE of the following would it be appropriate for S to do?

Question218: Which of the following describes the aim of corporate governance initiatives?

Question219: Wye has borrowed £10,000 from Exe and the loan has now become repayable in full. Exe has received a cheque from Wye for £9,000 stated to be "in full and final settlement of the loan." What is the position if Exe cashes the cheque?
(i) Exe will have accepted £9,000 in full and final settlement and will not be able to claim the other
£1,000 from Wye.
(ii) Exe is legally entitled to cash the cheque and pursue Wye for the balance of £1,000.
(iii) Exe will have accepted £9,000, but at law payment of less than the amount due cannot satisfy the full debt.

Question220: Which of the following statements is incorrect in relation to a public company limited by shares?

Question221: 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.