MONDAY: 1 August 2022. Afternoon paper. Time Allowed: 3 hours.

Answer ALL questions. Marks allocated to each question are shown at the end of the question. Do NOT write anything on this paper.


1. Discuss three benefits of good ethical conduct in the investment industry. (6 marks)

2.  In respect to the duty framework for ethical decision making, summarise two advantages and two disadvantages of the duty framework. (4 marks)

3. Highlight four central components of Cadbury voluntary code of corporate governance. (4 marks)

4. Examine six duties of a financial analyst to his employer. (6 marks)

(Total: 20 marks)


1. Discuss three main objectives of the Organisation for Economic Cooperation and Development (OECD).(6 marks)

2. Explain the following non-consequentialist theories:

Duty based theory. (2 marks)

The rights theory. (2 marks)

Divine command theory. (2 marks)

The fairness or justice theory. (2 marks)

3. Evaluate the following theories as used in corporate governance:

Political theory. (3 marks)

Transaction cost theory. (3 marks)

(Total: 20 marks)


1. Evaluate three components of emotional intelligence in relation to investment function. (6 marks)

2. Explain the term “ethical risk”. (2 marks)

Examine three ways of managing ethical risk. (6 marks)

3. In relation to stakeholders management, explain three roles of institutional investors in corporate governance. (3 marks)

4. In relation to Enterprise Risk Management (ERM):

Explain the term “risk governance”. (1 mark)

Distinguish between “centralised risk management” and “decentralised risk management”. (2 marks)

(Total: 20 marks)


1. Capital markets are currently seeking to promote finance development that meets the need of the present, without compromising the ability of future generations to meet their own needs. In light of the above statement, explain three ways in which capital market could promote sustainable development of a country. (6 marks)

2. In relation to theories of corporate governance, evaluate the following agency dilemma:

Shareholders and management. (3 marks)

Shareholders and creditors. (3 marks)

Shareholders and other stakeholders. (3 marks)

3. Summarise five requirements of composite construction in performance reporting. (5 marks)

(Total: 20 marks)


1. Discuss three reasons why discrimination is bad for business. (6 marks)

2. Explain three challenges to ethical behaviour and ethical dilemma. (6 marks)

3. Examine five rights of shareholders in an organisation. (5 marks)

4. Examine three internal stakeholders groups in relation to shareholders management. (3 marks)

(Total: 20 marks)

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