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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) The purpose of the criminal law is to regulate behavior within society.
(ii) The purpose of the civil law is to enable injured persons to obtain a remedy against the wrongdoer.
(iii) A breach of the criminal or civil law can result in the defendant being fined.

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

2. In which THREE of the following situations might professional accountants be required or permitted to disclose confidential information relating to their employer?

A) Where production of documents is required in the course of legal proceedings
B) Where disclosure is permitted by law, and authorized by the employer
C) When wishing to discuss an ethical problem with friends and colleagues from outside the organization
D) To comply with the quality review of a professional body
E) When directly asked for information by a potential investor in the business

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

A) The separation of the roles of Director and Company Secretary
B) The identification of an independent director as primary shareholder contact
C) The appointment of independent non-executive directors to the Board
D) The establishment of an audit committee

4. Which of the following is correct?
(i) A liquidated damages clause will be void if it amounts to a penalty clause.
(ii) A liquidated damages clause will apply where it is a genuine attempt to pre-estimate the loss caused by a breach of contract.
(iii) A liquidated damages clause is void if it is for an amount in excess of the actual loss caused by the breach of contract.

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

5. Which of the following does not apply to a private company which is about to declare a dividend?

A) The company must take account of accumulated realized losses.
B) There must be profits available for distribution as a dividend.
C) The company must have accumulated realized profits.
D) The company's net assets must equal the total of called up share capital plus un-distributable reserves.

Solutions: