Cima C05 Exam Question No 10

Question No 10:

Rex, a CIMA Member, is facing with the following ethical dilemma.
Rex’s wife has just got a job as managing director with a great remuneration package of a successful organization, which also happens to be one of his biggest clients.
Which statement is CORRECT?

A. Rex should prevent his wife from taking up this job, as it appears unethical.
B. By working through the CIMA Code of Ethics, Rex will find guidance how to deal with this ethical dilemma.
C. There is no ethical dilemma, as Rex and his wife are independent entities as far as their jobs are concerned.
D. Rex should immediately notify his client that he intends to terminate his service if it recruits his wife to avoid ethical conflict.

Answer: B