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CIMA BA4 Exam Syllabus Topics:

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

1. In which of the following business organisations do the members have limited liability and the ability to keep the constitution private?

A) A general partnership
B) A limited liability partnership
C) A company limited by shares
D) A sole trader

2. If a professional accountant believes that he or she will not be able to comply with all the legal frameworks, regulations and standards for business in a particular circumstance, what does he or she have a duty to do? Please select TWO of the following:

A) Act in the interests of his or her employer
B) Obey the law
C) Disregard conflicting standards
D) Raise his or her concerns by speaking up

3. Which of the following contracts might be specifically enforceable?

A) D has contracted to purchase a number of tins of fruit for her business but the seller has now stated that he no longer wishes to proceed with the contract.
B) A has contracted to sell his house to B but has changed his mind and no longer wishes to sell it.
C) C has contracted to buy a new Ford motor car but the garage is now refusing to honor the contract.
D) E has contracted to sing at a concert organized by F, but E has withdrawn as he has received a more lucrative offer from G.

4. Which of the following is correct?
(i) The first directors are appointed upon the incorporation of the company.
(ii) A director is a person who occupies the position of director by whatever name called.
(iii) A shadow director is a person in accordance with whose directions or instructions the directors of the company are accustomed to act.

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

5. Which THREE of the following are disadvantages of rules-based approaches to ethical standards?
Rules-based approaches:

A) are subject to precise definitions of wording and hence become contentious
B) are inconsistently applied due to the need for judgment.
C) have subjective standards which may cause confusion.
D) are inflexible and expensive
E) require objective enforcement by an independent party.
F) motivate compliance through value and judgment

Solutions: