CIMA CIMAPRA17-BA4-1 BA4 - Fundamentals of Ethics, Corporate Governance and Business Law Exam Exam Practice Test Questions

• Question 1

  What is an essential quality for a professional accountant?

  • Ethical acumen
  • Emotional intelligence
  • Emotional sensitivity
  • Listening skills

  Show Answer Answer: A Next

• Question 2

  Why should accountants be up-to-date with developments in the profession?Choose TWO options.

  • To ensure that clients or employers receive a competent professional service
  • To avoid accusations of negligence
  • To ensure successful career development
  • To earn the respect of their colleagues

  Show Answer Answer: A, ,B Next

• Question 3

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

  • Nina - Receives a large boxful of chocolate delivered to her house from the chocolate factory she is due to audit
  • Shannon - A department manager at an IT firm who regularly goes out drinking with her team members.
  • Ben - Regularly works two hours later than he should because his boss constantly gives him large amounts of work to do.
  • Tyrone - Works standard hours, though is usually unable to do any overtime due to family commitments.
  • Tina - A personal accountant who actively tries to build a rapport with her clients, though doesn't engage with them outside working hours.

  Show Answer Answer: A, ,B, ,C Next

• Question 4

  Section 14 of the Sale of Goods Act 1979 implies a condition into contracts for the sale of goods that the goods supplied will be of “satisfactory quality.” Exe inspected and purchased a new car. After travelling only 25 miles the engine seized up due to a latent defect. The manufacturer offered to repair the car in accordance with the guarantee but Exe has demanded a full refund.Which of the following is correct?

  • Exe is entitled to a full refund of the purchase price
  • As Exe had the opportunity to inspect the car he cannot rely on Section 14 of the Sale of Goods Act 1979 and is not entitled to a full refund
  • As Exe has a manufacturers guarantee he is obliged to comply with his contract and have the car repaired
  • Exe has used the car to travel 25 miles and cannot therefore obtain a full refund of the purchase price

  Show Answer Answer: A Next

• Question 5

  Which of the following are likely advantages of being a sole trader? Select ALL that apply.

  • No formal procedures required to set up the business.
  • Greater degree of independence.
  • They retain all profits.
  • Expansion is likely to be fast.
  • Working hours will be relatively short.
  • They have limited personal responsibility in regards to the debts of the business.

  Show Answer Answer: A, ,B, ,C Next