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CIMA BA4 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Company Administration | 10% | - Corporate legal administration
|
| Corporate Governance, Controls and Corporate Social Responsibility | 45% | - Corporate governance framework
|
| Business Ethics and Ethical Conflict | 30% | - Ethical principles and professional behaviour
|
| General Principles of Legal System, Contract and Employment Law | 15% | - Business law fundamentals
|
CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
Which of the following types of board committee are recommended by the UK Corporate Governance Code?
(i) Nomination Committee
(ii) Audit Committee
(iii) Quality Assurance Committee
- A. (ii) only
- B. (ii) and (iii) only
- C. (i) and (ii) only
- D. (i) only
Correct Answer: C 🗳️
When might an ethical dilemma occur?
- A. When there is a conflict of interest
- B. When legislation dictates the appropriate course of action
- C. All of the above
- D. When a code of ethics provides clear guidance on next steps
Correct Answer: A 🗳️
ABC plc has acted in breach of its health and safety obligations and this has led to a number of employees and members of the public being injured.
Which of the following is correct?
The breach could give rise to:
i. Civil claims on the part of the employees and members of the public
ii. Enforcement action by the Health and Safety Executive
iii. Criminal sanctions against ABC plc
- A. (ii) and (iii) only
- B. (i) and (ii) only
- C. (i) only
- D. (i), (ii) and (iii)
Correct Answer: D 🗳️
M wrote to A (Accountants), asking if he could rely on the firm's audit report of B Ltd. M told A (Accountants), confidentially, that he was considering making a take-over bid for B Ltd. A (Accountants) advised M that he could rely on the report. As a result, M relied on the report and purchased the entire share capital of B Ltd. M has now discovered that he has paid considerably more for the shares than they were worth, as the company's stock had been negligently over-valued in the audit report.
Which of the following is correct?
- A. M can sue A (Accountants) in the tort of negligence as they knew that M intended to rely on their report and the purpose for which he intended to use it.
- B. M cannot hold A (Accountants) responsible, as he did not pay for their advice.
- C. M can recover damages from A (Accountants) for breach of contract.
- D. M cannot recover compensation from A (Accountants) in tort, as they only owe a contractual duty to B Ltd.
Correct Answer: A 🗳️
CIMA's report on 'Practical Proposals to Improve Corporate Governance Disclosure' explores a range of ideas Which of the following statements is correct?
- A. In focusing on improving corporate governance disclosure the board should evaluate its own effectiveness by focusing on how its actions have improved profit.
- B. In focusing on improving corporate governance disclosure the board activities should be linked into key aspects of the corporate performance and strategic development to enable users to evaluate the effectiveness of the board
- C. In focusing on improving corporate governance disclosure the information provided should be standardised to enable shareholders to compare performance with other companies.
- D. In focusing on improving corporate governance disclosure the skills, experiences and personalities of the board should explain how the board ensures robust decision-making
Correct Answer: B 🗳️
Megan 
Martha 
Theobald 
Nathaniel 
Hilary 
Truda 
Jenny 
Hazel 
Mildred 
Dempsey 
Bartholomew 
Afra 
Valentine 
Carey 
Zara 
Iris 
Paul 
