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CIMA BA4 Exam Syllabus Topics:

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

1. Seller Ltd is a wholesaler of electrical goods which it sells to retailers only Which one of the following statements is correct in relation to the exclusion of the conditions which are implied into contracts for the sale of goods by sections 12 to 15 of the Sale of Goods Act 1979?

A) Sections 12 to 15 of the Sale of Goods Act cannot be excluded in any non-consumer sales
B) As Seller Ltd is only involved in non-consumer sales it may exclude all the conditions implied by sections 12 to 15 of the Sale of Goods Act 1979
C) Seller Ltd may exclude section 12 where reasonable but not sections 13 to 15
D) Seller Ltd cannot exclude section 12 but can exclude sections 13 to 15 where reasonable

2. Which of the following are the TWO main differences between the structure and function of company boards in Germany and the UK?

A) In Germany, boards are responsible for both management and governance, whereas in the UK they are responsible only for one or the other.
B) In Germany, the board reports on corporate governance issues, whereas in the UK it does not.
C) In Germany, boards often have a two-tier structure, wheras in the UK they are normally unitary.
D) In Germany, employees are usually represented on the board, whereas in the UK they are not.

3. Which of the following are correct in relation to supervisory and management boards of directors?
1 A supervisory board reports to the mangament board in respect of business policy and future strategy
2 A management board is usually made up entirely of executive directors
3 A supervisory board includes employee representatives.

A) 1 only
B) 1 and 2 only
C) 2 only
D) 2 and 3 only

4. Which of the 'fundamental principles' of CIMA's Code of Ethics is defined as follows?
"A professional accountant should comply with the relevant laws and regulations and should avoid any action that discredits the profession"

A) Integrity
B) Professional competence and due care
C) Objectivity
D) Professional behavior

5. Which of the following is correct?
(i) Purchasing a "shelf company" enables business to commence more quickly.
(ii) It is generally cheaper to purchase a "shelf company", than to arrange for a solicitor or accountant to register a new company.
(iii) Incorporating a company by registration enables the company's documents to be drafted to the particular needs of the incorporators.

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

Solutions: