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CIMA BA4 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: General Principles of Legal System, Contract and Employment Law | 15% | - Business law fundamentals
|
| Topic 2: Corporate Governance, Controls and Corporate Social Responsibility | 45% | - Internal controls and audit
|
| Topic 3: Business Ethics and Ethical Conflict | 30% | - Ethical principles and professional behaviour
|
| Topic 4: Company Administration | 10% | - Corporate legal administration
|
CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
Which of the following is correct in relation to damages?
(i) The victim of a breach of contract may claim damages in respect of losses caused by the breach which were within the contemplation of the contract breaker.
(ii) As a general rule damages cannot be claimed for annoyance and inconvenience caused by the breach of contract.
(iii) Where there is a breach of contract, damages are available to the innocent party as of right.
- A. (ii) only
- B. (ii) and (iii) only
- C. (i) only
- D. (i), (ii) and (iii)
Correct Answer: D 🗳️
Which of the following statements is correct in relation to the ability of a company to contract?
- A. If a company has restricted the ability of its directors to contact and the directors ignore the restrictions, then the outsiders may not enforce the contract.
- B. If a company wishes to restrict the ability of its directors to enter into particular contracts it may do so by placing restrictions on the directors in its articles of association
- C. If the shareholders learn that the directors are about to ignore the restrictions placed upon their ability to contract by the company the shareholders are unable to prevent the directors from proceeding
- D. The shareholders of a company have the ability to enter into a contract on behalf of the company, irrespective of any restrictions on the directors.
Correct Answer: C 🗳️
Which of the following terms can be defined as follows?
"...the way an organization manages its relationships"
- A. Corporate governance
- B. Social responsibility
- C. Ethics
- D. Professional behavior
Correct Answer: B 🗳️
The UK Corporate Governance Code is primarily concerned with the effective control, business efficacy and accountability of the management of public listed companies for the benefit of which of the following?
- A. Employees
- B. Shareholders
- C. Investors
- D. Stakeholders
Correct Answer: D 🗳️
Wye Ltd has an issued share capital of 500,000 ordinary 20p shares. The company wishes to consolidate its shares into 100,000 ordinary £1 shares. Which of the following is CORRECT?
(i) Wye Ltd must have the power to consolidate its share capital in its articles of association (ii) Consolidation is lawful for a private company but not for a public company (iii) The consolidation must be authorized by the shareholders of Wye Ltd passing an ordinary resolution
- A. (ii) and (iii) only
- B. (i) and (ii) only
- C. (i) and (iii) only
- D. (i), (ii) and (iii)
Correct Answer: C 🗳️
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