CIMA Business Ethics and Corporate Governance 3

Question 1

Which ethical theory holds that the morality of an action is determined solely by its consequences or outcomes?

Accepted Answer

Consequentialism

Answer

Consequentialism judges the morality of an action based solely on its outcomes or consequences, such as maximizing overall welfare.

Question 2

In corporate governance, what is a 'non-executive director's' primary function?

Accepted Answer

Providing independent oversight and challenge to executive management

Answer

Non-executive directors provide independent oversight and constructive challenge to executive management, enhancing board accountability.

Question 3

Under CIMA's Code of Ethics, the principle of 'confidentiality' prohibits which of the following?

Accepted Answer

Using client information for personal advantage

Answer

The confidentiality principle prohibits using confidential client information for personal advantage or disclosing it without proper authority.

Question 4

Which governance model places greatest emphasis on stakeholder interests rather than just shareholder value?

Accepted Answer

Rhineland (stakeholder) model

Answer

The Rhineland or stakeholder model of corporate governance emphasizes the interests of all stakeholders, not just shareholders.

Question 5

What does 'tone at the top' refer to in corporate governance?

Accepted Answer

The ethical climate and culture set by senior management and the board

Answer

'Tone at the top' refers to the ethical culture, values, and behaviors modeled and promoted by senior leadership and the board.

CIMA - Chartered Institute of Management Accountants Aptitude Test Practice Test