CIMA Fundamentals of Ethics - Corporate Governance and Business Law - BA4 Exam Practice Test
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?
Correct Answer: C
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Which of the following is correct in relation to the control of boards of directors of public limited companies?
i. The boards of public limited companies are under the legal control of the shareholders ii. The majority of the shares in public limited companies are held by institutional investors who are more concerned with capital growth and income than the internal management of public limited companies iii. As a general rule, private investors in the shares of public limited companies have insufficient power to influence the activities of the board.
i. The boards of public limited companies are under the legal control of the shareholders ii. The majority of the shares in public limited companies are held by institutional investors who are more concerned with capital growth and income than the internal management of public limited companies iii. As a general rule, private investors in the shares of public limited companies have insufficient power to influence the activities of the board.
Correct Answer: D
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Which of the following is presumed to be intended to create legal relations?
Correct Answer: D
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According to the UK Corporate Governance Code, who is responsible for setting the company's values and standards?
Correct Answer: A
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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
(i) Nomination Committee
(ii) Audit Committee
(iii) Quality Assurance Committee
Correct Answer: A
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Which of the following is INCORRECT in relation to the Unfair Terms in Consumer Contracts Regulations
1999?
1999?
Correct Answer: C
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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.
(i) To punish the contract breaker.
(ii) To compensate the innocent party.
(iii) To ensure that the innocent party makes a profit.
Correct Answer: B
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Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?
Correct Answer: A
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Anne was induced to enter into a contract with Benny by his negligent misrepresentation. Which of the following is correct?
(i) Anne has a remedy against Benny in the tort of negligence.
(ii) Anne has a remedy against Benny under the Misrepresentation Act 1967.
(iii) Anne has a remedy in the tort of deceit.
(i) Anne has a remedy against Benny in the tort of negligence.
(ii) Anne has a remedy against Benny under the Misrepresentation Act 1967.
(iii) Anne has a remedy in the tort of deceit.
Correct Answer: A
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Which of the following are included in CIMA's practical proposals for better reporting of corporate governance?
1. The Chief Executive should communicate information regarding the performance of individual directors to the shareholders
2. The company should explain how the information needs of the shareholders have been met during the year
3. The Chairman's views on good governance and the culture of the board should be communicated
1. The Chief Executive should communicate information regarding the performance of individual directors to the shareholders
2. The company should explain how the information needs of the shareholders have been met during the year
3. The Chairman's views on good governance and the culture of the board should be communicated
Correct Answer: A
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