CIMA BA4 : 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 would NOT violate the CIMA Code of Ethics fundamental principle of confidentiality?

A) Not disclosing information if required to do so by law
B) Disclosing confidential information to third parties
C) Using sensitive information gained with a previous employer for the advantage of a new employer
D) Disclosing publicly available information

2. C is a professional accountant He encounters an ethical dilemma in his role and wishes to seek help in resolving it. Which of the following would NOT be an appropriate source of advice?

A) Legal advisors.
B) The internal whistle-blowing helpline
C) The external auditors.
D) The CIMA ethics helpline

3. Which TWO of the following are true of the CIMA Code of Ethics?

A) It is based on values rather than compliance
B) It is a financial requirement of accountants
C) It covers every possible dilemma that an accountant might face
D) It establishes the fundamental principles of professional ethics for professional accountants

4. Which of the following statements is correct in relation to the ability of a company to contract?

A) 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
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) 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.
D) 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.

5. B Ltd has an issued share capital of 1,000 ordinary £1 shares. The board of B Ltd has resolved to alter the company's articles of association. Which of the following is correct?
(i) The articles may be altered by board resolution.
(ii) The articles may be altered by a written resolution of the shareholders.
(iii) The articles may be altered by a special resolution of the directors.

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

Solutions: