Which of the following is the superior source of law?

• A.A decision by the Supreme Court.
• B.A Regulation issued by the European Council of Ministers.
• C.A Statutory Instrument.
• D.A provision in an Act of Parliament

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According to CIMA, which of the following are ways in which corporate governance reporting could be improved?
Select ALL that apply.

• A.Ensure that compliance reporting is separate from governance reporting.
• B.Ensure company boards use their AGM to communicate with investors and encourage their participation.
• C.Ensure that there is a dialogue between the business and its shareholders.
• D.Make better use of the Chairman's message.
• E.Widen the remit of the governance report.

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Bill is conducting an audit on a furniture manufacturer. There doesn't appear to be any major issues with the company and its finances. However, Bill has noticed that the company has adopted a new set of accounting standards unusually early.
What should Bill do?

• A.Issue a modified audit report as he is unsatisfied with the elements examined.
• B.Document this finding in an 'emphasis of matter' statement
• C.Issue a modified audit report as he is satisfied the elements examined.
• D.Issue an adverse opinion due to concerns raised during the audit.

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Adam, Brian, Charles and David each held 25% of the issued share capital of ABCD Ltd. Adam has recently issued further shares to himself in order to increase his voting power. Which of the following is incorrect?

• A.The company may proceed against Adam for breach of fiduciary duty.
• B.The shareholders may challenge the validity of the share issue using Section 994 of the Companies Act
  2006, on the ground that the issue is "unfairly prejudicial to the interests of the shareholders".
• C.The shareholders may ratify the share issue by ordinary resolution.
• D.The share issue is automatically invalid.

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Pablo and Paula are in discussions with a potential buyer over the sale of their house. They tell the potential buyer that if they want to purchase the house for the full amount of £200,000, they'll need to send a letter that confirms their offer by Friday. If they don't receive such a letter by then, they'll withdraw the house from the market.
Friday comes and no letter arrives. However, it turned out the potential buyer actually posted the letter on the Monday before, and it simply got lost in the post. The letter eventually turns up on the following Monday.
Baring this in mind, are Pablo and Paula legally obliged to sell their house?

• A.No - They can decline the potential buyer's request at any time, regardless of when they received the letter.
• B.Yes - The potential buyer can choose to accept Pablo and Paulo's price whenever he wants, providing that he hasn't already declined it.
• C.Yes - Because the potential buyer sent the letter before the closing date.
• D.No - Because they received the letter after the closing date they do not have to accept the potential buyer's offer.

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