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BA4 – Fundamentals of Ethics, Corporate Governance and Business Law

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Showing 10–12 of 20 questions

Question 10

If a professional accountant believes that he or she will not be able to comply with all the legal frameworks, regulations and standards for business in a particular circumstance, what does he or she have a duty to do? Please select TWO of the following:

Select all that apply, then click Submit answer.

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    Obey the law
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    Disregard conflicting standards
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    Act in the interests of his or her employer
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    Raise his or her concerns by speaking up
Question 11

A advertised his van for sale in the local newspaper at a price of £5,000.

In which of the following situations is a contract between A and B created?

Select an option, then click Submit answer.

  • ○

    B wrote to A accepting his offer to sell the van for £5,000.
  • ○

    B wrote to A and offered to buy the van at £4,800. B stated “if I hear no more from you in the next three days I shall assume that you agree to sell the van to me at that price.” Three days have now passed and B has heard nothing from A.

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    B offered to buy the van for £4,800. A wrote to B accepting his offer. B wrote back stating: “payment will be made over three months.”
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    B offered to buy the van for £4,500. A wrote to B accepting his offer but later changed his mind and sent an email to B withdrawing his acceptance. The email was read by B before he read A's letter of acceptance.
Question 12

Wye has borrowed £10,000 from Exe and the loan has now become repayable in full. Exe has received a cheque from Wye for £9,000 stated to be “in full and final settlement of the loan.” What is the position if Exe cashes the cheque?

(i) Exe will have accepted £9,000 in full and final settlement and will not be able to claim the other £1,000 from Wye.

(ii) Exe is legally entitled to cash the cheque and pursue Wye for the balance of £1,000.

(iii) Exe will have accepted £9,000, but at law payment of less than the amount due cannot satisfy the full debt.

Select an option, then click Submit answer.

  • ○

    (i) only
  • ○

    (ii) only
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    (iii) only
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    (ii) and (iii) only