THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH CMA JUNE, 2017 EXAMINATION
BUSINESS LEVEL
SUBJECT: GE 05. FUNDAMENTALS OF ETHICS, CORPORATE GOVERNANCE AND BUSINESS LAW
Time: Three hours Full Marks: 100
All questions are to be attempted.
Show computations, where necessary.
Answer must be brief, relevant, neat and clean.
Start answering each question from a fresh sheet.
Q. No. 1
(a) Explain the reasons why CIMA and IFAC each have a ‘Code of Ethics for Professional Accountants’.
(b) Explain the nature of ethics and its application to business and the accountancy profession.
[Marks: (5+10) = 15]
Q. No. 2
Describe the consequences of unethical behavior to the individual, the profession and society.
[Marks: 10]
Q. No. 3
(a) What are the objectives of corporate governance?
(b) Bangladesh Securities & Exchange Commission has issued some guidelines in terms of Corporate Governance, of those few are most important. Describe any two of those which really have a good implication.
[Marks: (5+5) = 10]
Q. No. 4
Describe the characteristics of the legal systems found in other countries.
[Marks: 10]
Q. No. 5
(a) Explain when the parties will be regarded as intending the agreement to be legally binding and how an agreement may be avoided because of misrepresentations.
(b) Explain how the terms of a contract are established and their status determined.
[Marks: (10+10) = 20]
Q. No. 6
(a) Explain how employers and employees are affected by health and safety legislation.
[Marks: 10]
Q. No. 7
(a) Describe two reasons supporting why a company (corporate) form of business is superior to other forms of business.
(b) “There are two types of companies: private limited companies and public limited companies” Mr. Karim mentioned in his presentation to the MANCOM of High Growth Company. He added that “all public limited companies are listed and all private limited companies are not listed with bourses”.
As a future Management Accountant, do you agree with these statements? Provide explanations in support of your answers.
[Marks: (5+5) = 10]
Q. No. 8
(a) Explain the rights of majority and minority shareholders.
(b) Explain the qualifications, powers and duties of the company secretary.
[Marks: (5+10) = 15]
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