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

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Chantell

12 days 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.

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Myong

18 days 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.

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