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

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Question # 33

Tom is a director of XYZ Ltd. The company is considering purchasing Tom's business for Â£200,000. Which of the following is incorrect?Â Â Â Â Â Â Â

Tom cannot contract with XYZ Ltd as he would be placing himself in a conflict of interest and duty situation.

Tom must formally disclose his interest in the contract to the board.

The shareholders may approve the arrangement by passing an ordinary resolution.

The purchase consideration may be in the form of cash or shares.Â Â

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Question # 34

Which of the following is INCORRECT in relation to the recommendations of the Greenbury Committee Report of 1995?

All the recommendations were incorporated into the Stock Exchange Listing Rules.

Directors should never be given discounted share options.

Annual bonuses should not be pensionable.

Any long-term incentive schemes to be offered to directors should first be approved by the shareholders.Â Â

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Question # 35

Which of the following is correct?

i. A company intending to issue new shares for cash must first offer them to the existing shareholders.

ii. A company may dispense with the requirement to offer new shares to existing shareholders by passing a special resolution.

iii. A company issuing shares for a non-cash consideration is not required to offer the shares to the existing members first.

(i) only

(ii) only

(ii) and (iii) only

(i), (ii) and (iii)

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Question # 36

Although no-one has reason to suspect, you have taken a violent dislike to a particular assurance client. This could severely affect your independence:

Of belief

In appearance

Of mind

In competence

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Question # 37

Which ONE of the following in INCORRECT in relation to a Limited Liability Partnership (â€œLLPâ€)?

An LLP, like a company limited by shares, is a separate legal entity.

Outsiders contract with the LLP and not with the partners, just as outsiders would contract with the company and not the directors or shareholders of the company.

An LLP must have â€œdesignated membersâ€ which are the LLP equivalent of the board of directors of a private company.

In return for Limited liability, an LLP, like a company, is required to submit an annual return.

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Question # 38

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.

(i) only

(ii) only

(iii) only

(ii) and (iii) only

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Question # 39

Company B wants to implement ethical control over its staff. It wants to do this by implementing a strong organisational culture.

Which of the following are ways in which the organisation could exercise control in regards to its organisational culture?

Select ALL that apply.

Introduce a statement of values which outlines what the organisation stands for.

Ensure the company's ethical expectations are thoroughly communicated.

Ensure that the company's chairman and CEO lead by example.

Ensure that the company's organisational systems encourage adherence to its ethics.

Ensure that disciplinary action is taken when the company's ethical code is broken.

Only employ directors who have proven strong moral values.

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Question # 40

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.Â Â

Which of the following is correct?Â

Â 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.Â Â

(i) only

(ii) only

(i) and (ii) only

(iii) only

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