CIMA CIMA Certification BA4

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CIMA BA4 Exam Syllabus Topics:

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

Question #1

Company C got rid of a director because his interests failed to align with the shareholders'.
They've recently hired a new director, and they are keen to avoid a repeat scenario.
Which of the following could the company do to ensure the new director works with the best interests of shareholders in mind?
Select ALL that apply.

A. Widen the remit of the governance report to includes details about the the company's strategy, business model and risks.
B. Implement an incentive scheme to reward the director when he works in line with the interests of shareholders.
C. Ensure the deliverance of a detailed and comprehensive Chairman's message.
D. Give bonus payments to the director when he hits the company's targets.

Question #2

Which of the following is incorrect in relation to the remedy of damages?

A. A victim of a breach of contract may be unable to recover damages if he has failed to mitigate his loss.
B. Damages cannot be claimed for a breach of a contract to provide personal services.
C. Mitigation and remoteness of damage are irrelevant where a creditor is suing to recover an agreed debt.
D. A penalty clause in a contract cannot be enforced.

Question #3

Company F is a new business that prides itself on being green and ethical. It uses renewable energy to run its factories, abides by all the rules and regulations and regularly donates money to sustainable development charities around the world, despite occasionally being unable to fully pay its workers.
Why is Company F in violation of Carroll's CSR pyramid?

A. It is not in violation of Carroll's pyramid.
B. Because it should be donating to charities based in their own country.
C. Because using renewable energy to run factories generally isn't advised as it can be unreliable.
D. Because it is not profitable.

Question #4

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) and (iii) only
D. (i) only

Question #5

The IFAC Code of Ethics applies:

A. To accountants around the world
B. To accountants by law
C. To all professionals, including accountants
D. To those accountants whose employers sign up to the principles of acting ethically

Solutions: