BA4 Exam Dumps - Fundamentals of Ethics, Corporate Governance and Business Law

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Question # 9

In the event of a conflict between European Law and French Law which will prevail?

French private law

French public law

The French Code Civile

European law

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Question # 10

Â Â Which of the following is INCORRECT in relation to directors' duties?

i. Directors who arrange for shares to be offered directly to their supporters in order to prevent a take-over bid are acting lawfully so long as they have the legal power to allot shares in the company's constitution.

ii. Directors may act in breach of their duties and still be complying with the UK Corporate Governance Code.

iii. Directors' duties are owed to the shareholders as a body and enforceable by the company.

(i) only

(i) and (ii) only

(ii) only

(ii) and (iii) only

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Question # 11

An ethical dilemma generally refers to:

a deadlock in commercial disputes

a particular position on the spectrum of ethical philosophies

two or more possible solutions to an ethical problem

two or more opinions on the spectrum of ethical philosophies

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Question # 12

Which of the following statements is incorrect in relation to a public company limited by shares?

The company must have at least one director.

The company must have at least one shareholder.

The company must have issued at least Â£50,000 of shares.

The company must ensure that its company secretary is properly qualified whereas a private company need not have a company secretary.

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Question # 13

Which of the following terms can be defined as follows?

"...the system by which companies are directed and controlled"

Ethics

Social responsibility

Corporate governance

Professional behavior

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Question # 14

Which of the following may cause a director to be disqualified from acting as a director under the Company Directors Disqualification Act 1986?Â

(i) Persistent default by the director in complying with the filing requirements under the Companies Acts.

(ii) Causing a company to continue to trade at a time when the director ought to know that insolvency is inevitable.

(iii) Carrying on business with intent to defraud creditors.

(i) only

(i) and (ii) only

(ii) only

(i), (ii) and (iii)

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Question # 15

Which of the following contracts might be specifically enforceable?

A has contracted to sell his house to B but has changed his mind and no longer wishes to sell it.

C has contracted to buy a new Ford motor car but the garage is now refusing to honor the contract.

D has contracted to purchase a number of tins of fruit for her business but the seller has now stated that he no longer wishes to proceed with the contract.

E has contracted to sing at a concert organized by F, but E has withdrawn as he has received a more lucrative offer from G.

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Question # 16

What is the purpose of the equitable remedy of rescission?

To place the parties in their pre-contract position.

To force the party in breach to carry out the contract.

To prevent a party from acting in breach of contract.

To ensure that the innocent party is adequately compensated.

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