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Updated: Jun 01, 2026
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CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
1. Which of the following statements is correct?
A) The Articles of Association of a private company limited by shares may be altered by a special resolution.
B) The Articles of Association of a private company limited by shares may be altered by a board resolution.
C) The Articles of Association of a private company limited by shares may be altered by ordinary resolution.
D) The Articles of Association of a private company limited by shares may be altered by a written ordinary resolution.
2. A situation has arisen which will involve you participating in transactions which are legally correct but ethically unsound.
Which of the following is correct?
(i) It is not possible for a transaction to be both legal and ethically unsound.
(ii) As long as the transactions are legal you are acting properly in participating.
(iii) One of the purposes of ethical codes is to guide professionals as to how to behave even when the proposed transactions are legal.
A) (i) and (ii) only
B) (i) only
C) (ii) only
D) (iii) only
3. Rank the following, starting with the highest court:
(i) Crown Court
(ii) Supreme Court
(iii) Magistrates
(iv) Court of Appeal (Criminal)
A) (ii), (iv), (i), (iii)
B) (iv), (ii), (i), (iii)
C) (i), (ii), (iii), (iv)
D) (iii), (i), (iv), (ii)
4. Lotl is a well-known supermarket chain that has recently come under fire for not encouraging diversity within the organisation.
Because of this, it has been making efforts to make the business more diverse.
Which of the following are ways Lotl might do this?
Select ALL that apply.
A) Ensure that their in-store signs are written in at least five different languages.
B) Import and sell food from all over the world.
C) Encourage people from all backgrounds and cultures to apply for vacancies.
D) Ensure that the company has an even split of male and female employees at all levels.
E) Ensure that it offers equal opportunities to both able-bodied and disabled people.
5. Which of the following is correct in relation to a company's ability to contract where the company was registered after the Companies Act 2006 was fully implemented?
A) The company has unrestricted objects
B) The company's ability to contract is specified in its objects clause in its memorandum of association.
C) The company cannot restrict its ability to contract in either its memorandum or articles of association.
D) The company's ability to contract is specified in its objects clause in its articles of association.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: D | Question # 3 Answer: A | Question # 4 Answer: C,D,E | Question # 5 Answer: A |
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