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CIMA BA4 · Chapter 1 · Question 2 of 10

How does ethical behaviour generally relate to legal compliance?

Test yourself: pick an answer

Reveal answer & explanation

Correct answer: B) Ethics often demands a higher standard than the law, so an action can be legal yet unethical

Explanation

The law represents a minimum enforceable standard; ethics goes further and asks what is right. An action can therefore be perfectly lawful but still unethical, for example exploiting a loophole to mislead customers. Ethics does not authorise breaking the law, and law and ethics do not overlap completely.

All 10 questions in Chapter 1Business ethics and the role of the professional accountant MCQs with answers

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