Which of the following is INCORRECT in relation to the recommendations of the Greenbury Committee Report of 1995?

• A.Annual bonuses should not be pensionable.
• B.Any long-term incentive schemes to be offered to directors should first be approved by the shareholders.
• C.All the recommendations were incorporated into the Stock Exchange Listing Rules.
• D.Directors should never be given discounted share options.

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Which of the following terms can be defined as follows?
"...the generic way that organizations are run"

• A.Ethics
• B.Corporate governance
• C.Professional behavior
• D.Social responsibility

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Tom is a director of XYZ Ltd. The company is considering purchasing Tom's business for £200,000. Which of the following is incorrect?

• A.The purchase consideration may be in the form of cash or shares.
• B.Tom must formally disclose his interest in the contract to the board.
• C.The shareholders may approve the arrangement by passing an ordinary resolution.
• D.Tom cannot contract with XYZ Ltd as he would be placing himself in a conflict of interest and duty situation.

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Which TWO of the following are true of CIMA's conceptual framework approach to ethics?

• A.It is not sufficient for a professional accountant in public practice merely to comply with the examples presented; rather, the framework should be applied to the particular circumstances faced
• B.It provides an exhaustive list of all circumstances experienced by a professional accountant that may create threats to compliance with the fundamental principles
• C.It requires a professional accountant to identify, evaluate and address threats to compliance with the fundamental principles
• D.It defines all relevant safeguards

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B has been employed by Wye Ltd for 10 years. His contract of employment states that, if either Wye Ltd or B wishes to terminate the contract, each party must give the statutory minimum period of notice.
Which of the following statements is correct?

• A.Both B and Wye Ltd are entitled to 10 weeks' notice.
• B.B is entitled to 1 month's notice and Wye Ltd is entitled to 10 weeks' notice.
• C.B is entitled to 10 weeks' notice but Wye Ltd is entitled to only 1 week's notice.
• D.Both B and Wye Ltd are entitled to 1 week's notice.

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