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BA4 - Fundamentals of Ethics, Corporate Governance and Business Law Questions 151–155 (page: 32)

Updated On: 9-Feb-2026

A manager is consistently rude to a female employee and seems to have a low opinion of her ability, despite the fact that she is competent, works hard and is well liked by her peers. This is potentially an example of the ethical issue of:

  1. Incompetence
  2. Negligence
  3. Discrimination
  4. Conflict of interest

Answer(s): C



A advertised her motor car for sale in a local newspaper at a price of £5,000.

Which of the following is correct?

  1. The advertisement is an invitation to treat.
  2. The advertisement constitutes an offer which may be accepted by anyone who can pay the price.
  3. If B telephones A and asks if he can pay by installments, his call would amount to a counter offer.
  4. If C telephones A and offers £4,500, she has made a counter offer.

Answer(s): A



If a business trades as "Exe and Co (Office Furniture)" which of the following is CORRECT?

(i) The business could be owned by a partnership

(ii) The business could be owned by a sole trader

(iii) The business could be owned by a private company limited by shares

  1. (i) only
  2. (i) and (ii) only
  3. (iii) only
  4. (i), (ii) and (iii)

Answer(s): D



The body responsible for reviewing the operations of the accounting profession worldwide
is:

  1. The Professional Oversight Board for Accountancy
  2. The International Federation of Accountants
  3. The Financial Reporting Council
  4. The Financial Review Board

Answer(s): B



Which of the following is correct in relation to international relations?

(i) International regulations are voluntarily entered into by commercial and professional bodies to standardize practices and procedure to make it easier to enter into international trading agreements.

(ii) International regulations which have been agreed by the professional bodies of different states are only binding on the members of those bodies or those who choose to adopt them.

(iii) International regulations may attain the force of law by being adopted by the legislatures of individual states

  1. (i) only
  2. (i) and (ii) only
  3. (ii) only
  4. (i), (ii) and (iii)

Answer(s): D



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