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CIMA BA4 Exam Syllabus Topics:

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

Question 1

Which of the following would comply with best practice in accordance with the UK Corporate Governance Code in relation to Board conduct?

A. The Board of TSD, a public company limited by shares, consists of four executive directors and three non-executive directors. The Chairman, Mr C is the brother of the CEO Miss K The board meets ten times a year The board meetings are dominated by the siblings but the final decision is generally taken by the CEO
B. The Board of SSS a public company limited by shares, consists of four executive directors and five non-executive directors. The Board is headed by Mr I who is both CEO and Chairman The non-executive directors do challenge the strategic direction of the company and their opinions are considered and acted upon
C. The Board of END, a public company limited by shares, consists of four executive and five non- executive directors. The Board is headed by its Chairman, Miss A and the CEO is Miss B. The board has developed clear divisions of responsibility and consequently only meets in full once a year to approve the financial statements
D. The Board of DDE, a public company limited by shares, consists of four executive and five non- executive directors The Board is headed by its Chairman Mr A and the CEO is Mr H. The board meets ten times a year. The non-executive directors do challenge the strategic direction of the company and their opinions are considered and acted upon

Question 2

Which of the following CANNOT be carried out by a simple contract?

A. A contract for the provision of services.
B. A contract for the sale of a motor car.
C. A contract for the sale of land.
D. A contract of employment.

Question 3

What is the purpose of the equitable remedy of rescission?

A. To force the party in breach to carry out the contract.
B. To ensure that the innocent party is adequately compensated.
C. To prevent a party from acting in breach of contract.
D. To place the parties in their pre-contract position.

Question 4

Which of the following is incorrect?

A. A preliminary ruling of the European Court of Justice is sent back to the Court which referred the question and must be given effect by that court.
B. All courts below the Supreme Court may refer a case involving European Law to the European Court of Justice for a preliminary ruling.
C. An English court is not bound to give effect to a preliminary ruling of the European Court of Justice.
D. Supreme Court must refer a case involving European Law to the European Court of Justice for a preliminary ruling.

Question 5

Which of the following is not a legal person?

A. A private limited company.
B. A sole trader.
C. A public limited company.
D. A firm of accountants.

Solutions: