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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?
(i) A decision of the Supreme Court is binding on all lower courts which are called upon to decide a case based on similar material facts.
(ii) If there is a conflict between European Law and English law, European Law prevails.
(iii) Parliament may delegate authority to the government to make law.

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

2. IFAC member firms or bodies:

A) Must, by law, adhere to the IFAC Code of Ethics
B) Are entitled to use the IFAC Code of Ethics as an optional approach for their own organization
C) Must prosecute any individual who fails to adhere to any part of the IFAC Code of Ethics
D) Must not apply less stringent standards than those stated in the IFAC Code of Ethics

3. Which of the following is INCORRECT?

A) A person may be appointed company secretary for life
B) A company secretary may be dismissed by the board
C) A company secretary of a public company must be appropriately qualified
D) A company secretary is an officer and not an employee of the company

4. Exe Ltd includes the following provisions in its Articles of Association. If Exe Ltd acted in breach of these clauses, identify which would not be enforceable against the company as a breach of contract.

A) Shareholders wishing to sell their shares shall offer them to the company which will purchase them at a fair price as determined by the auditors.
B) Shareholders shall be paid dividends in cash.
C) All shareholders are entitled to attend and vote at general meetings of the company.
D) Tom (a shareholder) shall be the company's managing director for life.

5. You are the financial controller of SB Company, responsible for directing the budgeting process For the current year, you were instrumental in gaming approval of a particular manager's budget without modification. As a token of appreciation, the manager has given you a gift voucher for a local restaurant In considering whether or not to accept the gift, you should refer to which of the following fundamental ethical principles?

A) Credibility
B) Integrity
C) Professional competence
D) Professional behavior

Solutions: