CIMA Fundamentals of Ethics - Corporate Governance and Business Law : BA4 Exam Questions

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CIMA BA4 Exam Syllabus Topics:

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

1. Which of the following is CORRECT in relation to an alteration of a company's articles of association?
(i) A copy of the resolution and the amended articles must be filed with the Registrar of Companies within 15 days of the date of the resolution.
(ii) The articles of association may be amended by an ordinary resolution with special notice.
(iii) An alteration of the articles cannot discriminate between the majority and minority shareholders.

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

2. Which of the following is NOT an advantage of establishing a company by purchasing "off the shelf"?
(i) The company is already registered so that in general business may be commenced more quickly.
(ii) The purchase off the shelf company can be cheaper than registration of a new company.
(iii) The articles of association are tailor-made to the requirements of the purchaser.

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

3. Decklt is a skateboard manufacturer that is ethically run and has a good reputation.
However, it has just transpired that one of their suppliers - with whom they have a good relationship with due to their cheap prices - is involved in a serious fraud case.
What should Decklt do?

A) Stick with the supplier but let the relevant regulatory bodies know that Decklt had nothing to do with their illicit activity.
B) Immediately cut all ties with the company and look for a different supplier.
C) Immediately cut all ties with the supplier and discontinue all products that are made using their materials.
D) Stick with the supplier as they won't be able to find cheaper prices elsewhere.

4. In relation to the Unfair Contract Terms Act 1977, which of the following is correct?
(i) A clause which attempts to exclude liability for death or personal injury caused by negligence is only valid if it is reasonable.
(ii) A clause which attempts to exclude liability for damage to property is void unless it is reasonable.
(iii) The Unfair Contract Terms Act applies to contractual terms and to occupiers' liability.

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

5. Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?

A) Professional competence and due care
B) Professional conscience and due care
C) Professional consideration and due care
D) Professional cooperation and due care

Solutions: