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CIMA BA4 Exam Syllabus Topics:

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

1. How many fundamental principles are identified by the CIMA Code of Ethics?

A) Five
B) Four
C) Three
D) Six

2. Which of the following statements are correct in relation to an offer?
1. An offer may be made to the whole world
2. An offer cannot be withdrawn until the offeree has had the opportunity of accepting or rejecting the offer.
3. An item in a shop window marked "Special Offer" is not an offer in law.

A) 1 and 3 only
B) 1 and 2 only
C) 2 only
D) 1 only

3. Wye Ltd has ordered goods from ABC plc and the directors of Wye Ltd have guaranteed that Wye Ltd will pay the agreed sum within one month of the delivery of the goods.
Which of the following is correct?
(i) The contract is between Wye Ltd and ABC plc and the directors cannot be forced to pay the amount due in any circumstances.
(ii) A contract of guarantee is only enforceable if it is evidenced in writing.
(iii) The directors of Wye Ltd can be forced to honor the guarantee in the event of Wye Ltd not paying the amount due.

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

4. Which of the following are situations involving conflicts of interest? Select ALL that apply.

A) Tina - A personal accountant who actively tries to build a rapport with her clients, though doesn't engage with them outside working hours.
B) Nina - Receives a large boxful of chocolate delivered to her house from the chocolate factory she is due to audit
C) Ben - Regularly works two hours later than he should because his boss constantly gives him large amounts of work to do.
D) Shannon - A department manager at an IT firm who regularly goes out drinking with her team members.
E) Tyrone - Works standard hours, though is usually unable to do any overtime due to family commitments.

5. Which of the following statements is correct in relation to business organisations?

A) In the event of a company limited by shares going into insolvent liquidation the shareholders become fully liable for the debts of the company
B) A limited liability partnership is a separate legal entity distinct from the partners in a similar way to how a private company is a legal entity distinct from its shareholders and directors
C) Although a public company may offer its shares and securities to the general public it can only do so if it is listed on a stock exchange
D) A general partnership and a private limited company can be formed without the need for any written documents

Solutions: