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BA4 - Fundamentals of Ethics, Corporate Governance and Business Law Questions 136–140 (page: 29)

Updated On: 9-Feb-2026

Y has an opening at his company for a trainee accountant. His nephew is just about to leave school, and Y receives a call from his sister suggesting that her son should get the job. Y's firm has a strict policy with regards to the employment of family members, especially in finance departments. But for Y, looking after his family is very important, and he is sure he will be an excellent staff member. Y has an ethical dilemma because there is tension between:

  1. His personal and corporate values
  2. His personal and societal values
  3. His professional and corporate values
  4. His personal and professional values

Answer(s): A



A Ltd contracted to deliver a quantity of goods to B Ltd for £5,000. The goods were delivered and A Ltd submitted an invoice to B Ltd for the amount due which contained a number of new terms. Which of the following is incorrect?

  1. The invoice is a contractual document and B Ltd is bound by the terms on the invoice.
  2. B Ltd is only bound by the terms if it was given notice of them at or before the time of the contract.
  3. B Ltd is bound by the terms if there is a sufficient course of dealings between A Ltd and B Ltd so that B Ltd is assumed to know of the terms.
  4. If B Ltd is unaware of the terms, it can only be bound by them if it agrees to be so.

Answer(s): A



Which of the following is the superior source of law?

  1. A decision by the Supreme Court.
  2. A provision in an Act of Parliament
  3. A Regulation issued by the European Council of Ministers.
  4. A Statutory Instrument.

Answer(s): C



Which of the following is incorrect?

  1. In order to register a company, promoters must include a Memorandum of Association in the documents submitted to the Register of Companies.
  2. A company cannot be registered with the same name as a company already on the register.
  3. For a company with a share capital, the application for registration must contain a statement of capital and initial shareholdings.
  4. The directors of a newly registered company cannot also act as directors of another company.

Answer(s): D



Zed plc has appointed Wye and Co (accountants) as auditors of the company. If the audit is carried out negligently which of the following are entitled to claim against the auditors?

  1. Zed plc only
  2. Zed plc and the directors of Zed plc.
  3. Zed plc, its directors and shareholders.
  4. Zed plc, its directors and shareholders and any other person who has suffered loss as a result of the negligent audit.

Answer(s): A



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