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X was employed by Bee Ltd as its senior design consultant. X contracted with Bee Ltd that, when his employment with the company ceased, he would not act in competition with it or solicit its customers. After X left Bee Ltd, he registered a company called Cee Ltd which immediately began working in competition with Bee Ltd and soliciting its customers. Bee Ltd complained to X about this conduct, but X stated that, as the work was being undertaken by Cee Ltd, a separate legal entity, X had not acted in breach of the agreement with Bee Ltd.

Which of the following statements is correct?

  1. X is correct and cannot be said to be in breach of the agreement with Bee Ltd.
  2. If the court finds that Cee Ltd was set up by X to avoid the agreement with Bee Ltd, it will "lift the corporate veil" and enforce X's contract with Bee Ltd against X and Cee Ltd.
  3. Cee Ltd will be bound by the agreement because a company is always liable for the actions of its shareholders.
  4. The agreement between Bee Ltd and X is of no legal effect, as it attempts to regulate X's activities after he has left Bee Ltd's employment.

Answer(s): B



Being able to be trusted by others to be dependable reflects the personal quality identified by the CIMA Code of Ethics as:

  1. Traditionalism
  2. Reliability
  3. Respect
  4. Transparency

Answer(s): B



The IFAC Code of Ethics applies:

  1. To accountants by law
  2. To accountants around the world
  3. To those accountants whose employers sign up to the principles of acting ethically
  4. To all professionals, including accountants

Answer(s): B



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

"A professional accountant should act diligently and in accordance with applicable technical and professional standards"

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

Answer(s): C






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