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BA4 - Fundamentals of Ethics, Corporate Governance and Business Law Questions 206–210 (page: 43)

Updated On: 9-Feb-2026

In relation to business names which of the following is CORRECT?

(i) Any business may trade under a business name.

(ii) If a business name is used the name of the owner of the business must be disclosed.

(iii) The business name of a private limited company must end with the word "Limited" or "Ltd".

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

Answer(s): B



Which TWO of the following are true of CIMA's conceptual framework approach to ethics?

  1. It provides an exhaustive list of all circumstances experienced by a professional accountant that may create threats to compliance with the fundamental principles
  2. It defines all relevant safeguards
  3. It requires a professional accountant to identify, evaluate and address threats to compliance with the fundamental principles
  4. It is not sufficient for a professional accountant in public practice merely to comply with the examples presented; rather, the framework should be applied to the particular circumstances faced

Answer(s): C,D



Which ONE of the following requires the approval of a simple majority of all the company's shareholders who are entitled to vote?

  1. A written special resolution.
  2. A special resolution.
  3. A written ordinary resolution.
  4. An ordinary resolution

Answer(s): C



What is the public function of all accountants?

  1. To provide truthful and independent accounts of finances
  2. To give financial judgments to owners and shareholders
  3. To do a job and go home
  4. To represent the life-cycle of accounts

Answer(s): A



J is employed as management accountant of a large retailer. Jo has been invited to take a holiday 'all expenses paid' at a villa owned by the managing director of a supplier organization. If J accepts the invitation, which of the following 'fundamental principles' of CIMA's Code of Ethics will be compromised?

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

Answer(s): B



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