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CIMA BA4 Exam Syllabus Topics:

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

1. In relation to directors, which of the following statements is incorrect?

A) The directors may be dismissed by the shareholders tor any reason
B) The Remuneration Committee usually consists entirely of non-executive directors
C) The boards of listed companies commonly appoint sub-committees to enable them to comply with corporate governance requirements
D) The executive directors are bound to carry out only those duties which are stated in the director's contract of service

2. Which ONE of the following business organizations could be used by Tom to carry on a business consultancy on his own account?
(i) A private company limited by shares
(ii) A sole tradership.
(iii) A limited liability partnership

A) (i) and (ii) only
B) (i) and (iii) only
C) (ii) only
D) (i) only

3. Which ONE of the following is not included in the CIMA Code of Ethics list of client issues that could threaten compliance with the fundamental principles?

A) Dishonesty
B) Client involvement in illegal activities (such as money laundering)
C) A client having an objectionable personality
D) Questionable financial reporting practices

4. Which of the following terms can be defined as follows?
"...the system by which companies are directed and controlled"

A) Social responsibility
B) Ethics
C) Corporate governance
D) Professional behavior

5. Y has an opening at his company for a trainee accountant. His nephew is just about to leave school, and Y receives a call from his sister suggesting that her son should get the job. Y's firm has a strict policy with regards to the employment of family members, especially in finance departments. But for Y, looking after his family is very important, and he is sure he will be an excellent staff member. Y has an ethical dilemma because there is tension between:

A) His personal and societal values
B) His personal and corporate values
C) His personal and professional values
D) His professional and corporate values

Solutions: