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BA4 - Fundamentals of Ethics, Corporate Governance and Business Law Questions 191–195 (page: 40)

Updated On: 9-Feb-2026

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?

  1. Yes - promotional offers of this sort are unethical and J should throw away all of the vouchers
  2. Yes - the vouchers were given to J on the understanding that he would distribute them to other employees rather than keep them for himself
  3. No - as long as J gives vouchers to other company employees who earn as little as he does
  4. No - the vouchers were given to J, so he can do what he likes with them

Answer(s): B



C has just set up her own practice and things are going well. She is also a single parent, so is reliant upon her income to pay her bills and support her family. One of her uncles recommends a new client to her. This client wants C to provide an accountant's report in support of his mortgage application. He insists there is no need for her to see the full details of his income. He suggests that C's uncle would be most displeased if she did not help him, and that she may potentially lose other potential clients.

This is a tension between C's:

  1. Personal and Professional values
  2. Corporate and Professional values
  3. Societal and Professional values
  4. Personal and Societal values

Answer(s): A



In which of the following countries are employees represented at board level?

i) Germany.

ii) United States of America

iii) France.

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

Answer(s): A



Which of the following groups is a non-financial as opposed to a financial stakeholder of a company?

  1. Competitors
  2. Shareholders
  3. Customers
  4. Suppliers

Answer(s): A



Which of the 'fundamental principles' of CIMA's Code of Ethics is defined as follows?

"A professional accountant should be straightforward and honest in all professional and business relationships"

  1. Confidentiality
  2. Professional behavior
  3. Objectivity
  4. Integrity

Answer(s): D



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