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BA4 - Fundamentals of Ethics, Corporate Governance and Business Law Questions 226–230 (page: 47)

Updated On: 9-Feb-2026

When preparing financial statements, you are extremely careful not to omit relevant information, mislead readers or misstate facts. This demonstrates the CIMA Code of Ethics fundamental principle of:

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

Answer(s): D



Which TWO of the following are true of the CIMA Code of Ethics?

  1. It covers every possible dilemma that an accountant might face
  2. It is based on values rather than compliance
  3. It is a financial requirement of accountants
  4. It establishes the fundamental principles of professional ethics for professional accountants

Answer(s): B,D



Which of the following statements is correct?

  1. The Articles of Association of a private company limited by shares may be altered by ordinary resolution.
  2. The Articles of Association of a private company limited by shares may be altered by a written ordinary resolution.
  3. The Articles of Association of a private company limited by shares may be altered by a special resolution.
  4. The Articles of Association of a private company limited by shares may be altered by a board resolution.

Answer(s): C



Zed Ltd was incorporated in 2010 and has chosen to use the standard Model Articles of Association. The company is considering appointing Max as a director of the company.

Which of the following is incorrect?

(i) Max cannot be a director of the company unless he holds shares in the company.

(ii) Max cannot be a director of the company if he is an undischarged bankrupt.

(iii) Max cannot be a director of the company if he is subject to a disqualification order.

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

Answer(s): A



Which of the following is INCORRECT in relation to the board of directors of a private company limited by shares?

  1. The board reaches its decisions by majority vote
  2. The board cannot delegate its authority
  3. The board may reach a decision by written resolution
  4. If there are an equal number of votes for and against a proposal before the board the negative views prevail and the proposed resolution is defeated

Answer(s): B



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