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Question 24

You work for a manufacturing company and are told that one of the line managers made a genuine mistake that led to the discharge of waste material into a local river. Your managing director says that the company cannot afford a large fine and demands that no one reports the waste spillage or mentions it again. Is this an ethical issue and why?

Options:

A.

Yes - but only if the waste causes damage to the local environment

B.

Yes - the manager who created the spill has behaved unethically and should be disciplined

C.

Yes - the company has a duty to report something that might breach environmental legislation and could cause environmental damage

D.

No - the leak was a mistake, so this is not an ethical issue

Question 25

According to CIMA, what is accountability?

Options:

A.

Being responsible to someone and for something or action

B.

Being able to explain the actions that one has taken

C.

An important aspect of the profession and of leadership in the wider business environment

D.

All of the above

Question 26

Which of the following is correct in relation to damages?

(i) As a general rule damages for breach of contract are designed to place the innocent party in the position that he or she would have been in had the contract been carried out properly.

(ii) Damages are only available for breach of contract, if the breach caused the loss.

(iii) Damages are only available for losses arising naturally from the breach.

Options:

A.

(i) and (ii) only

B.

(i), (ii) and (iii)

C.

(ii) only

D.

(ii) and (iii) only

Question 27

Which of the following are situations involving familiarity threats? Select ALL that apply.

Options:

A.

Steve - A business manager who hires his 18-year-old son for a managerial level job.

B.

Kay - A department manager who doesn 't reprimand one of her team members for doing a job wrong because they are friends.

C.

Angela - Has worked on the production line for the past seven years.

D.

Steve - Conducts monthly reviews of his team's performance (the team hasn't changed for the past five years).

E.

Bryan - Has worked as an accountant for the past ten years. He always makes sure he is up-to-date with changes in the industry.

Page: 6 / 24
Exam Code: BA4
Exam Name: Fundamentals of Ethics, Corporate Governance and Business Law
Last Update: Nov 21, 2024
Questions: 661
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