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CIMA BA4 Exam Syllabus Topics:

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

1. Articles of association regulate the relationship between:

A) the company and its members
B) the company and its creditors
C) the company and its customers
D) the company and its directors

2. Which of the following statements is correct in relation to a misrepresentation?

A) If a person can show that he or she was induced to contract by a misrepresentation then a court must grant a remedy, irrespective of the time taken to commence the action against the misrepresents.
B) If one person attempts to persuade another to enter into a contract by misrepresenting the facts, the intended victim will have a remedy, unless the misrepresentation did not induce the intended victim to contract
C) A person selling goods may be hekJ liable in misrepresentation if he or she remains silent during the negotiations and fails to correct any misunderstandings on the part of the buyer
D) A misrepresentation is a false statement of fact or opinion made by one person to another before a contract is formed and which causes the contract to be automatically cancelled

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

A) Professional belief
B) Professional bearing
C) Professional bias
D) Professional behavior

4. X owns 51% of the shares in X Ltd. Y and Z are the only directors of X Ltd. Which ONE of the following is CORRECT?

A) X can use his votes to amend the articles and impose new obligations on Y and Z
B) X can force Y and Z to declare a dividend
C) X can give directions to Y and Z by passing ordinary resolutions ordering them to comply with his wishes
D) X can dismiss Y and Z for any reason by using his majority vote

5. Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?

A) The appointment of independent non-executive directors to the Board
B) The establishment of an audit committee
C) The appointment of a senior external auditor to the Board
D) The separation of the roles of Chairman and Chief Executive

Solutions: