BA4 Exam Dumps - Fundamentals of Ethics, Corporate Governance and Business Law

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Question # 25

In which of the following business organisations do the members have limited liability and the ability to keep the constitution private?

A limited liability partnership

A sole trader

A company limited by shares

A general partnership

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Question # 26

In relation to the law of misrepresentation, which of the following is correct?

The innocent party is entitled to claim damages under the tort of negligence for all types of misrepresentation.

A person is not entitled to rescind a contract which was induced by an innocent misrepresentation.

A person is only entitled to a remedy under the Misrepresentation Act where the person who made the misrepresentation is a party to the contract.

The Misrepresentation Act may be used to obtain damages for fraudulent misrepresentation.

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Question # 27

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) only

(ii) only

(i) and (iii) only

(i), (ii) and (iii).

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Question # 28

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?

All five of the members must agree to short notice

A alone may call the meeting on short notice

Any three of the members may agree to the meeting being held on short notice

A and any two of the other members can agree to short notice

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Question # 29

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?

Yes - promotional offers of this sort are unethical and J should throw away all of the vouchers

Yes - the vouchers were given to J on the understanding that he would distribute them to other employees rather than keep them for himself

No - as long as J gives vouchers to other company employees who earn as little as he does

No - the vouchers were given to J, so he can do what he likes with them

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Question # 30

The majority of developed countries require publicly quoted companies and large companies to produce annual financial statements which are then audited by an external auditor.

Which of the following statements regarding the requirement for external audit is Incorrect?

Independent external audit gives confidence in the financial statements which is required as the directors have incentives to manipulate the financial statements presented to the shareholders

As the directors are responsible for the day-to-day management of the company, they hold more detailed information which is resolved by the presentation of financial statements to the shareholders and this needs to be guaranteed by independent external audit.

Independent external audit gives confidence in the financial statements by including the auditor's opinion on whether or not they show a true and fair view.

As the directors are responsible for the day-to-day management of the company, they hold more detailed information which is resolved by the presentation of financial statements to the shareholders and there is a need for this to be assured by independent external audit

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Question # 31

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

a gift from a client is accepted

the competitive fee quoted did not recognize the complexity of the assignment

the auditor accepts a referral of a new client from an existing client

a professional accountant in public practice solicits new work through advertising or other forms of marketing

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Question # 32

You work for an international mining company. Which of the following corporate issues is NOT related to ethics or social responsibility?

The impact of your operations on the environment

Your company's response to HIV/Aids among workers in sub-Saharan Africa