QUESTION: 29

A company's board of directors is found to have committed widespread fraud and engaged in a wide range of unethical practices. Which of the following is the LEAST likely consequence of this?

Insolvency or bankruptcy for the company
Prison sentences for company directors
Loss of credibility
A significant rise in the company's share price

Answer(s): D

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QUESTION: 30

Which ONE of the following was NOT a recommendation of the Cadbury Committee Report 1992?

Independent non-executive directors should be appointed to the boards of listed companies
An audit committee consisting of a majority of non-executive directors should be established to oversee the company's finances
Executive directors should not be offered service contracts for more than five years unless approved by the shareholders in a general meeting
The remuneration packages of executive directors should be agreed by a remuneration committee wholly or mainly comprising non-executive directors

Answer(s): C

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In relation to the Unfair Contract Terms Act 1977, which of the following is correct?

(i) A clause which attempts to exclude liability for death or personal injury caused by negligence is only valid if it is reasonable.

(ii) A clause which attempts to exclude liability for damage to property is void unless it is reasonable.

(iii) The Unfair Contract Terms Act applies to contractual terms and to occupiers' liability.

(i) only
(ii) only
(i) and (iii) only
(ii) and (iii) only

Answer(s): D

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QUESTION: 32

What can companies do in order to minimize the likelihood of future legislation?

Maintain effective self regulation
Insist on the highest standards of ethical behavior from their company and its employees
Understand and address what the public expects of companies in terms of ethical behavior and social responsibilities
All of the above

Answer(s): D

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QUESTION: 29

QUESTION: 30

QUESTION: 31

QUESTION: 32

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