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Question 52

X Ltd has entered into a number of contracts with Y Ltd. In which of the following situations could the directors be held personally liable for the debts contracted with Y Ltd?

(i) X Ltd has continued to trade at a time when insolvency appeared inevitable

(ii) X Ltd has become insolvent and is unable to pay its debts to Y Ltd

(iii) X Ltd has contracted for a purpose not specified in its articles of association

Options:

A.

(i) only

B.

(i) and (ii) only

C.

(ii) only

D.

(iii) only

Question 53

Which of the following statements is INCORRECT?

(i) A counter offer has the legal effect of destroying the original offer and putting another offer in its place.

(ii) For an agreement to be valid at law, the offer and the acceptance must be in the same form.

(iii) Agreements made by email are unenforceable at law.

Options:

A.

(i) only

B.

(ii) only

C.

(iii) only

D.

(ii) and (iii) only

Question 54

IFAC member firms or bodies:

Options:

A.

Are entitled to use the IFAC Code of Ethics as an optional approach for their own organization

B.

Must, by law, adhere to the IFAC Code of Ethics

C.

Must prosecute any individual who fails to adhere to any part of the IFAC Code of Ethics

D.

Must not apply less stringent standards than those stated in the IFAC Code of Ethics

Question 55

Company A has recently been having problems matching the views of its employees to its own. Which of the following might help their situation? Select ALL that apply.

Options:

A.

Only hire those who share the company's views.

B.

Ensure management level employees follow the actions and behaviour of those higher up.

C.

Teach employees the company's values and train them to follow them.

D.

Remove any barriers that might prevent an employee from adhering to the company's ethics.

E.

Reward those who consistently recognise and and adhere to the company's values.

F.

Discipline those who regularly ignore the company's rules and values.

G.

Threaten legal action against those who regularly ignore the company's ethics.

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