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Fundamentals of Ethics, Corporate Governance and Business Law

Last Update Nov 24, 2022
Total Questions : 503

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Fundamentals of Ethics, Corporate Governance and Business Law Questions and Answers

Questions 1

John is conducting an external audit on a biscuit factory. He wants to make sure that his audit is comprehensive and thorough. To do this, he aims to make full use of his powers and rights.

Which of the following is John allowed to do?

Select ALL that apply.



Access the company's books and records.


Ask responsible officers to produce relevant documents.


Ask for explanations from officers of the company.


Ask to be notified of any shareholder meetings.


Present arguments at a meeting if there is a proposal to remove the auditors.


Actively investigate fraudulent activity.


Review and report on the performance of management.

Questions 2

Y has an opening at his company for a trainee accountant. His nephew is just about to leave school, and Y receives a call from his sister suggesting that her son should get the job. Y's firm has a strict policy with regards to the employment of family members, especially in finance departments. But for Y, looking after his family is very important, and he is sure he will be an excellent staff member.  Y has an ethical dilemma because there is tension between:



His personal and corporate values


His personal and societal values


His professional and corporate values


His personal and professional values

Questions 3

(i) In general a person is assumed to know of a clause of which he has been given reasonable notice at or before the time of the contract.

(ii) In general a person cannot rely on a clause brought to the other party's attention after the contract has been concluded.

(iii) In general a person cannot be bound by a clause written in small print.


Choose one of the following.



Only (i) and (ii) are correct.


Only (ii) and (iii) are correct.


Only (i) and (iii) are correct.


(i), (ii) and (iii) are correct.