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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 statements are correct in relation to an offer?
1. An offer may be made to the whole world
2. An offer cannot be withdrawn until the offeree has had the opportunity of accepting or rejecting the offer.
3. An item in a shop window marked "Special Offer" is not an offer in law.

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

2. Which of the following must be satisfied for an employee to claim wrongful dismissal?
(i) The employer terminated the contract without notice, and was not justified in doing so.
(ii) The employee must have at least 12 months' continuous employment.
(iii) The dismissal was not for reasons of conduct, capability, redundancy or some other substantial reason.

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

3. According to the CIMA Code of Ethics:

A) Good ethical behavior may be above that required by the law
B) Good legal behavior may be above that required by ethics
C) Good ethical behavior may be above that required by professional bodies
D) Good professional behavior may be above that required by ethics

4. Company C got rid of a director because his interests failed to align with the shareholders'.
They've recently hired a new director, and they are keen to avoid a repeat scenario.
Which of the following could the company do to ensure the new director works with the best interests of shareholders in mind?
Select ALL that apply.

A) Give bonus payments to the director when he hits the company's targets.
B) Widen the remit of the governance report to includes details about the the company's strategy, business model and risks.
C) Implement an incentive scheme to reward the director when he works in line with the interests of shareholders.
D) Ensure the deliverance of a detailed and comprehensive Chairman's message.

5. In the UK, the body responsible for reviewing the regulatory activities of the professional accountancy bodies is:

A) The Financial Review Board
B) The International Federation of Accountants
C) The Financial Reporting Council
D) The Professional Oversight Board for Accountancy

Solutions: