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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 the main legislature within the European Union?

A) The European Commission
B) The Council of the European Union
C) The European Court of Justice
D) The European Parliament

2. Which TWO of the following are reasons why a company would choose to introduce a values based code of ethics?

A) To identify gifted staff
B) To provide guidance for staff
C) To improve the cost efficiency of internal processes
D) To help staff to tackle the ethical dilemmas that they might face at work

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

A) The identification of an independent director as primary shareholder contact
B) The separation of the roles of Chairman and Chief Executive
C) The establishment of an audit committee
D) The appointment of executive directors to the Board

4. Which of the following statements in relation to companies is correct?

A) A disadvantage of running a private company limited by shares is that it is much more bureaucratic than a sole tradership
B) A public company limited by shares generally has less access to capital than a general partnership
C) A member of a public company limited by shares has a right to participate in the management of the company.
D) A mam advantage of carrying on business through the medium of a private company limited by shares is that the company is not fully liable for its own debts

5. Natthapong's toilet won't flush, so he hires a plumber to come over and fix it.
He tells the plumber what the problem is, and the plumber agrees to fix it.
However, once the builder supposedly finishes the job, Natthapong finds that it still won't flush.
Is he able to terminate the contract?

A) Yes - He is able to terminate the contract at any time, even if the plumber did fix the toilet.
B) No - Once he's offered the plumber the job he is unable to terminate the contract.
C) Yes - The plumber did not fix the toilet and so the offer cannot be accepted.
D) No - Even if the plumber hasn't fixed the toilet he has still given up his time and effort and should therefore be paid.

Solutions: