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CIMA BA4 Exam Syllabus Topics:

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

Question 1

Which of the following are situations involving familiarity threats? Select ALL that apply.

A. Kay - A department manager who doesn 't reprimand one of her team members for doing a job wrong because they are friends.
B. Angela - Has worked on the production line for the past seven years.
C. Bryan - Has worked as an accountant for the past ten years. He always makes sure he is up-to-date with changes in the industry.
D. Steve - Conducts monthly reviews of his team's performance (the team hasn't changed for the past five years).
E. Steve - A business manager who hires his 18-year-old son for a managerial level job.

Question 2

While working as an accountant, you are asked to overlook certain irregularities in your company's accounts. This is likely to result in tensions described by which TWO of the following four options:

A. Personal and corporate values
B. Personal and societal values
C. Professional and societal values
D. Professional and corporate values

Question 3

Seller Ltd is a wholesaler of electrical goods which it sells to retailers only Which one of the following statements is correct in relation to the exclusion of the conditions which are implied into contracts for the sale of goods by sections 12 to 15 of the Sale of Goods Act 1979?

A. Seller Ltd cannot exclude section 12 but can exclude sections 13 to 15 where reasonable
B. As Seller Ltd is only involved in non-consumer sales it may exclude all the conditions implied by sections 12 to 15 of the Sale of Goods Act 1979
C. Seller Ltd may exclude section 12 where reasonable but not sections 13 to 15
D. Sections 12 to 15 of the Sale of Goods Act cannot be excluded in any non-consumer sales

Question 4

The Articles of Association of Dee Ltd state that the company has power to borrow money and that the directors have authority to borrow up to £200,000 on behalf of the company. The board has resolved to purchase a piece of land for £300,000. The Midwest Bank plc has agreed to make a loan of £250,000 to Dee Ltd to acquire the land. Which of the following statements is correct?

A. The loan is ultra virus the directors who will be personally liable for any loss caused to the company, unless their actions are ratified by the shareholders.
B. As the directors have exceeded their authority, the bank cannot enforce the loan against Dee Ltd.
C. As the directors have resolved to obtain the loan they have acted in accordance with the company's constitution.
D. The loan is void as Dee Ltd has acted ultra virus.

Question 5

B a new employee, has noticed that other members of staff in the company falsely complete their timesheets at the end of the month, making it look like they have worked more hours than they actually have.
When asked about it, C. another employee stated that management were aware of the practice, but they were happy to tolerate this as long as it was a limited amount extra, and it was up to B to decide whether or not to do the same B decided to add a few extra unworked hours to her own timesheet This is an example of what type of influence on ethical behavior?

A. Corporate governance
B. Corporate culture
C. Professional codes of ethics
D. Peer pressure

Solutions: