Acca paper F1 fia diploma in Accounting and Business Accountant in Business (AB/fab) exam kit

 (2 
marks) 
134 Which of the following is a value that organisations try to encourage within their 
corporate culture in order to encourage staff to act ethically? 
A Empowerment 
B Integrity 
C Satisfaction 
D Objectivity
 (2 
marks) 
135 In order to encourage ethical behaviour, BHG Co has told all of its employees that they 
must treat all employees and stakeholders with respect, regardless of their gender, age, 
ethnicity or sexuality. Which key value is BHG asking its staff to consider? 
A Empowerment 
B Trust 
C Respect 
D Honesty
 (2 
marks) 
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PRA CTICE OBJE CTIVE TEST QUESTIONS : 
SECTION 1 
K APLA N PUBLISH ING 
31 
136 
Deontological ethics suggest that the consequences of an action should be ignored.
 
Is this statement TRUE or FALSE? 
A True 
B False 
(1 mark)
GOVERNANCE AND SOCIAL RESPONSIBILITY IN BUSINESS 
137 Where there are a large number of external shareholders who play no role in the day-to-
day running of a company, there is a situation that is described as: 
A 
detached corporate ownership 
B uninvolved 
external 
ownership 
C 
dividend based shareholding 
D 
separation of ownership and control 
(2 marks) 
138 The ‘agency problem’ refers to which of the following situations? 
A 
Shareholders acting in their own short-term interests rather than the long-term 
interests of the company 
B 
A vocal minority of shareholders expecting the directors to act as their agents and 
pay substantial dividends 
C 
Companies reliant upon substantial government contracts such that they are 
effectively agents of the government 
D 
The directors acting in their own interests rather than the shareholders’ interests