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CIMA Certificate Fundamentals of Ethics, Corporate Governance and Business Law

Fundamentals of Ethics, Corporate Governance and Business Law

Last Update Mar 8, 2026
Total Questions : 661

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Questions 2

You are the manager of the finance function of a large engineering company According to IFAC's drivers of sustainable corporate success, which of the following would be a method by which you could improve the value of your department to the company?

Options:

Providing ethical leadership which focuses on minimizing environmental costs sustainably.

Providing ethical and strategic leadership which focuses on sustainable value creation.

Providing strategic leadership which sustains the maximization of short term value.

Providing sustainable ethical and strategic leadership which focuses on operating profit.

Discussion 0

Questions 3

Y is completing an internal audit work on the system to approve suppliers to JKL Company. Which of the following would NOT promote a sustainable approach to the company's relationship with it\suppliers?

Options:

Each supplier must comply with JKL's policy on limiting non-recyclable packaging to 10% of total packaging per contract

Haulage firms must demonstrate that they have a policy to reduce emissions from their fleet

Each year approval as a supplier to the company will only be granted if the prices paid to the supplier are reduced by 1%

Preference will be given to local suppliers over those located at a greater distance from the company

Discussion 0

Questions 4

A business has been registered under the name ABC Ltd. Which of the following types of business organization must this be?

Options:

A partnership.

A public limited company.

A private limited company.

Either a private limited company or a public limited company.

Discussion 0

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Questions 5

Which of the following is correct?

(i) A liquidated damages clause will be void if it amounts to a penalty clause.

(ii) A liquidated damages clause will apply where it is a genuine attempt to pre-estimate the loss caused by a breach of contract.

(iii) A liquidated damages clause is void if it is for an amount in excess of the actual loss caused by the breach of contract.

Options:

(i) and (ii) only

(ii) only