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CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:

1. ABC Accountants has taken out an advert in its local paper to promote its services. Mr B, an account manager, is uncomfortable, as the advert says that ABC is expert in charitable tax issues, and he knows that none of the partners have that expertise. However, Mr B does not want to be thought of as a
'trouble maker' by bringing the matter up with his manager. Which TWO things should Mr B do?

A) Do nothing
B) Seek guidance from CIMA's Code of Ethics
C) Seek guidance from his line-manager
D) Speak to the local paper

2. Which of the following countries does not have a written constitution?

A) The United Kingdom
B) Poland
C) Italy
D) Germany

3. You work for a company that designs and manufactures children's toys. Which of the following is NOT an example of social responsibility that your company might choose to address?

A) The welfare of workers who assemble the company's products
B) The environmental impact of transporting toys from the country of manufacture to the country of sale
C) Whether the recommended retail price of a particular product provides sufficient margin after the unit cost of production is taken into account
D) The use of chemicals in manufacturing

4. Why is it difficult to measure ethical issues?

A) Because they tend not to be 'black and white'
B) Because they are open to interpretation
C) Because they tend to be kept secret
D) Because there are no records

5. 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?

A) Maybe - depending on whether he uses the software for personal or business use
B) No - one additional copy of the software makes no difference to the manufacturer, so this is not an ethical issue
C) Yes - unauthorized reproduction would be regarded by the manufacturer as software piracy
D) Maybe - depending on whether his income is really insufficient to cover the cost of software purchase

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