CIMA Exam CIMAPRA17-BA4-1 Topic 6 Question 77 Discussion

Actual exam question for CIMA's CIMAPRA17-BA4-1 exam

Question #: 77
Topic #: 6

Section 172 of the Companies Act 2006 provides that directors must promote the success of the company for the benefit of its members. Which of the following factors must be taken account of in complying with this duty?

(i) The interests of the company's employees

(ii) The likely consequence of any decision in the long term

(iii) The impact of the company's operations on the community and the environment

A(i) only

B(i) and (ii) only

C(ii) and (iii) only

D(i), (ii) and (iii)

Show Suggested Answer

Suggested Answer: B

by Janine at Nov 25, 2023, 11:35 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRA17-BA4-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Virgie

1 months ago

Okay, let's think this through. The question is asking about the factors that directors must consider when promoting the success of the company. It seems like (D) covers all the bases, so that's gotta be the right answer. Time to move on to the next question!

upvoted 0 times

Beth

7 days ago

Let's go with (D) then, it covers all the important factors.

upvoted 0 times

...

Coral

8 days ago

Yeah, (D) seems like the most comprehensive choice here.

upvoted 0 times

...

Cherry

20 days ago

I think you're right, (D) covers all the factors that directors must consider.

upvoted 0 times

...

Lacresha

1 months ago

Haha, I bet the person who wrote this question is laughing at us all struggling to figure it out. They're probably sitting in their office sipping tea and chuckling to themselves. Oh well, at least I can use this as an excuse to take a coffee break.

upvoted 0 times

Domonique

4 days ago

C) (ii) and (iii) only

upvoted 0 times

...

Princess

5 days ago

B) (i) and (ii) only

upvoted 0 times

...

Venita

9 days ago

A) (i) only

upvoted 0 times

...

Chantell

2 months ago

Ugh, I hate questions about obscure sections of the Companies Act. Why can't they just ask something simple, like the definition of a limited liability company? This is making my head spin.

upvoted 0 times

Yuki

1 months ago

B) (i) and (ii) only

upvoted 0 times

...

Emily

1 months ago

A) (i) only

upvoted 0 times

...

Pamella

2 months ago

I think the answer is D) (i), (ii) and (iii)

upvoted 0 times

...

Gwenn

2 months ago

I know, these questions can be so frustrating sometimes.

upvoted 0 times

...

Myong

2 months ago

This question is a tricky one. The correct answer seems to be (D), but I'm not sure if I'm interpreting the law correctly. I better double-check my notes to make sure I don't mess this up.

upvoted 0 times