CIMA BA4 Exam Questions : Fundamentals of Ethics - Corporate Governance and Business Law

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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 correct?

A) A special resolution may be passed by 51% of the shareholders who are present voting in favor of the proposal either in person or by proxy.
B) A special resolution may only be passed by 75% of all the company's shareholders voting in favor of the proposal either in person or by proxy.
C) A special resolution may only be passed by all the company's shareholders voting in favor of the proposal either in person or by proxy.
D) A special resolution may be passed by 75% of the shareholders who are present voting in favor of the proposal either in person or by proxy.

2. Which of the 'fundamental principles' of CIMA's Code of Ethics is defined as follows?
"A professional accountant should act diligently and in accordance with applicable technical and professional standards"

A) Professional behavior
B) Professional competence and due care
C) Integrity
D) Objectivity

3. Decklt is a skateboard manufacturer that is ethically run and has a good reputation.
However, it has just transpired that one of their suppliers - with whom they have a good relationship with due to their cheap prices - is involved in a serious fraud case.
What should Decklt do?

A) Stick with the supplier but let the relevant regulatory bodies know that Decklt had nothing to do with their illicit activity.
B) Immediately cut all ties with the company and look for a different supplier.
C) Stick with the supplier as they won't be able to find cheaper prices elsewhere.
D) Immediately cut all ties with the supplier and discontinue all products that are made using their materials.

4. Miss B is working closely with Mr L to deliver an important report on the efficiency of Mr L's department. They have had to work late together several times, and last night they went out to dinner afterwards. Miss B is starting to think she may have feelings for Mr L.
Could her independence be called into question?

A) No, provided she does not act on her feelings and continues to be professional
B) No, she is not actually dating Mr L so her independence of appearance is not compromised
C) Yes, having dinner with a work colleague can affect her independence of appearance
D) Yes, her feelings could be influencing her independence of mind

5. The UK Corporate Governance Code is primarily directed at which type of business organization?

A) All private companies
B) All business organizations
C) All listed public companies
D) All limited liability business organizations

Solutions: