CIMA Certificate BA4 Book

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Question 56

Which of the following statements is correct?

(i) As a general rule the acceptance of an offer is only effective when it has been communicated to the offeror.

(ii) A person must know of an offer before he or she can accept it.

(iii) A request for further information has the effect of destroying the original offer.

Options:

(i) and (ii).

(ii) and (iii).

(i) and (iii).

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

Question 57

You work for an airline company and discover a series of regular payments made to a lobbying group that campaigns to allow people freedom to fly as and when they choose without being taxed for contributing to global warming. The group's website includes specific commentary that claims to 'expose the myth of global warming'. Neither your company nor the lobbying group (which describes itself as 'independent') mention the financial link between your organizations. Is this an ethical issue and why?

Options:

Yes - the lobbying group appears to be funded at least in part by your company so it is not independent and is therefore misleading people about its status

Maybe - depending on whether the lobbying group is funded by other airlines as well as your company

No - companies are entitled to fund any groups that they choose, particularly if it is in their financial interest. Neither party has done anything unethical

No - there is unlikely to be any connection between the payments and the group's aims. After all, companies regularly fund Non-Government Organizations (NGOs) and other types of organization

Question 58

The Global Reporting Initiative (GRI) has produced Sustamability Reporting Guidelines, setting out categories and aspects which should be addressed through sustainable reporting.

Place the GRI categories next to the appropriate aspect of sustamability below.

Options:

Question 59

Which of the following is correct in relation to loans to directors of a public company?

Options:

A public company which provides a loan to one of its directors commits a criminal offence unless the loan is approved by the shareholders

If a public company pays the debts of one of its directors on terms that the payment must be repaid by the director, the shareholders must approve the payment

A public company cannot make loans to its directors

A public company is not subject to any restrictions when making a loan to one of its directors

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