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BA4 - Fundamentals of Ethics, Corporate Governance and Business Law Questions 216–220 (page: 45)

Updated On: 9-Feb-2026

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

"A professional accountant should not allow bias, conflict of interest or undue influence of others to override professional or business judgments"

  1. Integrity
  2. Objectivity
  3. Professional competence and due care
  4. Professional behavior

Answer(s): B



What has been the root of the majority of recent corporate scandals?

  1. Misapplication or ignoring of ethical values
  2. Misapplication or ignoring of accounting principles
  3. Misapplication or ignoring of regulations
  4. Misapplication or ignoring of human rights

Answer(s): A



Which of the following automatically causes a contract to become unenforceable?

(i) Where the contract has become frustrated.

(ii) Where the buyer was induced to enter into the contract by a fraudulent misrepresentation.

(iii) Where one of the parties has acted in breach of a warranty in the contract.

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

Answer(s): A



Demonstrating politeness and good manners towards others reflects the personal quality identified by the CIMA Code of Ethics as:

  1. Correctness
  2. Cohesion
  3. Creativity
  4. Courtesy

Answer(s): D



Your boss knows that you will always strive to deliver a project on time and on budget. Which TWO of the personal qualities identified by the CIMA Code of Ethics does this demonstrate?

  1. Reliability
  2. Courtesy
  3. Timeliness
  4. Respect

Answer(s): A,C



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