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Question 44

Which of the following is correct in relation to the control of boards of directors of public limited companies? 

i. The boards of public limited companies are under the legal control of the shareholders

ii. The majority of the shares in public limited companies are held by institutional investors who are more concerned with capital growth and income than the internal management of public limited companies

iii. As a general rule, private investors in the shares of public limited companies have insufficient power to influence the activities of the board.

Options:

A.

(i) only

B.

(i) and (ii) only

C.

(i) and (iii) only

D.

(i),(ii) and (iii)

Question 45

Which of the following most accurately describes the ratio decidendi?

Options:

A.

It is a statement of law by a court which is binding on all higher courts which are called upon to decide a similar case.

B.

It is a statement of law by a court which is not binding on lower courts which are called upon to decide a similar case.

C.

It is a statement of law by a court which is binding on all lower courts which are called upon to decide a similar case.

D.

It is a statement of law by a court which is binding on all future courts which are called upon to decide a similar case.  

Question 46

Alongside technical competence what, for example, should the management accountant ask themselves?

Options:

A.

Am I being objective and impartial?

B.

Am I telling the client what they want to hear?

C.

Am I protecting my home and family?

D.

Am I being subjective and impartial?

Question 47

Which of the following statements refer to the Sarbanes-Oxley Act?

Options:

A.

Known as Sarbox or SOX

B.

Rules-based approach

C.

Only applies to the US

D.

Established in 1992

E.

Adherence is not compulsory

Page: 11 / 24
Exam Code: BA4
Exam Name: Fundamentals of Ethics, Corporate Governance and Business Law
Last Update: May 5, 2024
Questions: 661
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