BA4 CIMA Fundamentals of Ethics, Corporate Governance and Business Law exact Exam Questions

Fundamentals of Ethics, Corporate Governance and Business Law

Last Update 5 hours ago Total Questions : 661

The Fundamentals of Ethics, Corporate Governance and Business Law content is now fully updated, with all current exam questions added 5 hours ago. Deciding to include BA4 practice exam questions in your study plan goes far beyond basic test preparation.

You'll find that our BA4 exam questions frequently feature detailed scenarios and practical problem-solving exercises that directly mirror industry challenges. Engaging with these BA4 sample sets allows you to effectively manage your time and pace yourself, giving you the ability to finish any Fundamentals of Ethics, Corporate Governance and Business Law practice test comfortably within the allotted time.

Question # 166

Corporate governance codes may either be rules-based or principles-based

Which of the following statements correctly describes a rules-based approach to corporate governance?

A rules-based approach requires that a company complies with the rules or explains why it has not.

A rules-based approach instils the code into law but leaves the sanctions for non-compliance to be decided and enforced by the shareholders.

A rules-based approach instils the code into law but encourages compliance with the spirit of the law.

A rules-based approach instils the code into law with appropriate penalties for transgression.

Question # 167

Which ONE of the following statements is correct in relation to the UK Corporate Governance Code?

If the Code is ignored by any company, no action may be taken as it has no legal status

If any company fails to comply with the Code, the directors may be sued for breach of duty by the company on behalf of the shareholders

If a public company fails to comply with the Code, it may be sued for breach of statutory duty by those who have suffered loss as a result

If a listed public company fails to produce a report explaining why it has not implemented the Code ' s recommendations, it has acted in breach of the Code

Question # 168

Which of the following statements is incorrect?

(i) A term may be implied into a contract on the basis of previous dealings between the parties.

(ii) A term may be implied into a contract by statute.

(iii) A term may be implied into a contract by a court where it would be reasonable to imply it.

(i) only

(i) and (ii) only

(ii) only

(iii) only

Question # 169

Which of the following is INCORRECT in relation to directors ' duties?

Directors owe a duty to promote the success of the company.

Directors ' duties are codified in the UK Corporate Governance Code.

Directors must act in accordance with the company ' s constitution.

Directors ' duties are owed to the shareholders as a whole.

Question # 170

Which of the following need to be proved in order for there to be a misrepresentation? Select ALL that apply.

A false representation of the facts.

Made by one party to the other before any contract is made.

An inducement to mislead one party into entering the contract.

Distortion of facts.

More than two parties were involved.

There was at least one witness when the misrepresentation occurred.

Question # 171

Which of the following is INCORRECT regarding the differences between a general partnership and a company limited by shares?

(i) Both a partnership and a company are formed by registration with the Registrar of Companies.

(ii) All partners are agents of the firm and all directors are agents of the company.

(iii) All partners are fully liable for the firm’s debts and the company is fully liable for its own debts.

(i) only

(i) and (ii) only

(i) and (iii) only

(iii) only

Question # 172

Being offered gifts and hospitality can give rise to threats to compliance with fundamental principles. Which of the following statements is NOT in accordance with the CIMA Code of Ethics?

Accepting a gift may create self-interest threats to objectivity

If a professional accountant accepts a substantial gift, the possibility of that offer being made public could result in intimidation threats

The significance of threats will depend on the nature, value and intent behind the offer

If a professional accountant believes that a gift of significant value is designed to influence his or her actions, then it is acceptable for him or her to accept the gift without disclosing details of the gift to colleagues or superiors

Question # 173

Which of the following options are correct in relation to a contract of employment?

1. The contract must be in writing

2. An employee ' s duty to act with reasonable care and skill is implied into the contract

3. An employer ' s duty to provide a inference is implied into the contract

1 and 2 only

2 and 3 only

1 only

2 only

Question # 174

You work for a publishing company. Which of the following corporate issues is NOT related to ethics or social responsibility?

Whether advertisers are given more favorable editorial coverage than other companies that do not advertise in your company ' s magazines

Whether the paper used for the magazines comes from sustainably managed forests or can be recycled

Whether your company ' s magazines are more popular than competitor titles

Whether sales targets are so high that they implicitly encourage salespeople to ignore corporate values and principles

Question # 175

Which of the following are cases where the veil should be lifted? Select ALL that apply.

The pink company - Failed to disclose the full company name on official documents.

The orange company - Continues to trade even though it knows it is in irrevocable debt

The white company - An investigative journalist reveals that the company has been deliberately avoiding tax.

The red company - Continues to trade despite being having small debts.

The black company - Trades with a company based in a country experiencing civil war.

Question # 176

Which of the following is NOT an essential element of a valid simple contract?

Agreement.

Written terms.

Intention to create legal relations.

Consideration.

Question # 177

C has just set up her own practice and things are going well. She is also a single parent, so is reliant upon her income to pay her bills and support her family. One of her uncles recommends a new client to her. This client wants C to provide an accountant ' s report in support of his mortgage application. He insists there is no need for her to see the full details of his income. He suggests that C ' s uncle would be most displeased if she did not help him, and that she may potentially lose other potential clients.

This is a tension between C ' s:

Personal and Professional values

Corporate and Professional values

Societal and Professional values

Personal and Societal values

Question # 178

Paul is asked to work for a company that runs online casinos, but he has a deep seated conviction that gambling in any form is immoral. This dilemma is an example of a tension between:

Societal and professional values

Personal and corporate values

Corporate and professional values

None of the above