Cima C05 Exam Question No 17

Question No 17:

i. A company director could act in breach of the duty of care, and yet could still comply with the principles of corporate governance.
ii. A professional accountant acting as a company director has got a strict duty of care towards the shareholders.
Which of the following is CORRECT in relation to the above statements?
 
A. i only
B. ii only
C. i and ii
D. None of them.

Answer: A

Cima C05 Exam Question No 16

Question No 16:

Which of the following are represented at board level in the United Kingdom?

A. Both shareholders and employees
B. Both shareholders and creditors
C. Shareholders only
D. Employees only

Answer: C

Cima C05 Exam Question No 15

Question No 15:

According to the Cad bury Committee Report 1992 independent non-executive directors should be appointed to the board of listed UK companies.
This is to ensure:

A. It is cheaper to recruit non-executive directors than executive directors
B. Non-executive directors are more experienced than executive directors
C. Non-executive directors are perceived to be more independent than executive directors
D. It is more difficult to remove non-executive directors from the board than executive directors

Answer: C

Cima C05 Exam Question No 14

Question No 14:

Which of the following is suggesting that one person should not occupy the role of Chairman and Chief Executive of a public listed company.

A. The Hampel Committee Report 1998
B. The Cad bury Committee Report 1992
C. The Green bury Committee Report 1995
D. The Smith Report on Audit Committees 2003

Answer: A

Cima C05 Exam Question No 13

Question No 13:

 The system by which companies are directed and controlled is called:

A. Corporate regulations
B. Corporate governance
C. Corporate administration
D. Corporate compliance

Answer: B