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CIMA BA4 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| General Principles of the Legal System, Contract and Employment Law | 15% | - Legal system fundamentals - Employment law essentials - Contract law basics |
| Business Ethics and Ethical Conflict | 30% | - Ethical dilemmas and resolution - Professional ethics principles - Nature and importance of ethics |
| Corporate Governance, Controls and Corporate Social Responsibility | 45% | - Principles of corporate governance - Role of board and directors - Internal controls and audit - Corporate social responsibility (CSR) |
| Company Administration | 10% | - Types of business organisation - Administration and management of companies |
CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
IFAC member firms or bodies:
- A. Must prosecute any individual who fails to adhere to any part of the IFAC Code of Ethics
- B. Must not apply less stringent standards than those stated in the IFAC Code of Ethics
- C. Are entitled to use the IFAC Code of Ethics as an optional approach for their own organization
- D. Must, by law, adhere to the IFAC Code of Ethics
Correct Answer: B 🗳️
How might a company ensure that the roles and responsibilities of its board and management are made clear and publicly known?
- A. Ensure it has an audit committee, remuneration committee and a nominations committee.
- B. Highlight this information during its AGM.
- C. Ensure such details are included in the its annual report.
- D. Adhere to the principles outlined in the Sarbanes-Oxley Act.
Correct Answer: C 🗳️
X, Y and Z are the only shareholders in XYZ Ltd each holding 1,000 ordinary £1 shares. X is the only director of the company. The articles of association of XYZ Ltd provide that "in the event of any proposal to dismiss a director by ordinary resolution, the votes of the director are to count 3 times." Which ONE of the following is CORRECT?
- A. The clause in the articles cannot be used by X as it is not an ordinary membership right.
- B. The provision in the articles is void as it effectively means that X is irremovable as a director of XYZ Ltd.
- C. X will be able to rely on the provision in the articles and outvote any proposal to dismiss him as a director.
- D. The company would be able to pass a special resolution removing the provision in the articles and then dismiss X by passing an ordinary resolution.
Correct Answer: C 🗳️
W, a junior accountant, passed all his qualifications with distinction, and has received high praise for the quality of the work he has done. However, he always delivers his work late, believing it is more important to be thorough than to be on time. Which personal quality is W lacking?
- A. Timeliness
- B. Respect
- C. Reliability
- D. Courtesy
Correct Answer: A 🗳️
Anne was induced to enter into a contract with Benny by his negligent misrepresentation. Which of the following is correct?
(i) Anne has a remedy against Benny in the tort of negligence.
(ii) Anne has a remedy against Benny under the Misrepresentation Act 1967.
(iii) Anne has a remedy in the tort of deceit.
- A. (i) only
- B. (ii) and (iii) only
- C. (i) and (ii) only
- D. (i), (ii) and (iii)
Correct Answer: C 🗳️
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