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CIMA BA4 Exam Syllabus Topics:

CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:

Question 1

Which of the following will NOT as a general rule amount to consideration?

A. A promise to carry out an existing contract.
B. A promise to do an act in return for payment.
C. A promise to do more than was originally agreed.
D. A promise to pay the amount due at an early date.

Question 2

Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?

A. The establishment of a risk committee
B. The appointment of independent non-executive directors to the Board
C. The separation of the roles of Chairman and Chief Executive
D. The identification of an independent director as primary shareholder contact

Question 3

Wye Ltd is considering appointing Anne as a director of the company. Which of the following is incorrect?
(i) If Anne is an un-discharged bankrupt, she cannot act as a company director.
(ii) If Anne is the subject of a disqualification order, she cannot act as a company director.
(iii) If Anne has already been appointed a director of another company, she cannot also act as a director of Wye Ltd.

A. (i) only
B. (ii) and (iii) only
C. (ii) only
D. (iii) only

Question 4

Mr X's wife is gravely ill. He accepts money from a client to falsify some accounts. The client is a contractor, being paid by the Government to build a bridge over a river. The accounts now state that more expensive materials were used to build the bridge. The money helps Mr X pay for his wife's medical treatment. Is this an example of a 'victimless crime'?

A. Yes. Mr X has a duty to do as his client asked
B. Yes. Mr X used the money to get help for his wife. The bridge was built anyway
C. No. The contractor is being paid to build a bridge with tax payers' money. If it is built with poor quality materials it may collapse, wasting money, and potentially causing an accident
D. Yes. Mr X needed the money to help his wife - family is more important

Question 5

Which of the following is CORRECT in relation to a Limited Liability Partnership ("LLP")?
(i) An LLP is formed by registration with the Registrar of Companies
(ii) Unlike the articles of a company the internal rules of an LLP are not available for public inspection (iii) An LLP is liable to pay corporation tax on its profits

A. (i), (ii) and (iii)
B. (i) and (ii) only
C. (i) only
D. (ii) and (iii) only

Solutions: