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BA4 – Fundamentals of Ethics, Corporate Governance and Business Law

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Showing 16–18 of 20 questions

Question 16

Which of the following is NOT a correct distinction between shares and debentures?

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    If a company is in insolvent liquidation debenture holders are paid in priority to shareholders.
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    Unlike dividends, debenture interest must be paid, even if a company is trading at a loss.
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    Both share and debenture holders are members of the company and entitled to vote.
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    Debenture interest is deductible from gross profit in order to determine taxable profit. Dividends are profits.

Question 17

Which of the following reasons for dismissal are NOT deemed to be automatically unfair?

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    Serious misconduct
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    Refusing to join an independent trade union.

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    Pregnancy
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    Selection for redundancy because of membership of a trade union.

Question 18

Which of the following does a professional accountant NOT have a duty to stay up to date on?

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    Emerging issues that could affect public interest
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    Who's who in the industry
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    New legislation
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    Ethical issues relating to his or her work