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CIMA BA4 Exam Syllabus Topics:

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

Question 1

Anne, Bill, Chris and Diane are the only directors of ABCD Ltd. Bill is the Chairman of the board and has a casting vote. A board meeting was called to consider a proposal to enter into a contract with EFG Ltd.
Which of the following is INCORRECT?

A. The board has validly resolved to contract with EFG Ltd if any three of the directors vote in favor
B. If Bill and one other director votes in favor, Bill can use his casting vote to carry the proposal
C. The proposal is lost if only two of Anne, Chris and Diane vote in favor
D. As Bill is the Chairman, the board cannot validly resolve to contract with EFG Ltd without Bill's consent

Question 2

Which of the following is not valid consideration?

A. Payment to be made upon delivery of the goods.
B. A promise to make an early repayment of a debt.
C. Past consideration.
D. Payment handed over at the time of the contract.

Question 3

Which ONE of the following statements is incorrect? Ethical standards are:

A. Required of professional accountants by CIMA
B. Required of professional accountants by UK legislation
C. Part of good accounting practice
D. Designed to encourage ethical behavior

Question 4

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) and (iii) only
B. (i) only
C. (ii) only
D. (i), (ii) and (iii)

Question 5

Which of the following is correct in relation to a company's ability to contract where the company was registered after the Companies Act 2006 was fully implemented?

A. The company's ability to contract is specified in its objects clause in its memorandum of association.
B. The company has unrestricted objects
C. The company cannot restrict its ability to contract in either its memorandum or articles of association.
D. The company's ability to contract is specified in its objects clause in its articles of association.

Solutions: