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CIMA BA4 Exam Syllabus Topics:

SectionWeightObjectives
General Principles of the Legal System, Contract and Employment Law15%- Structure and sources of law
- Terms, breach and remedies of contract
- Employment law, rights and obligations
- Essential elements of a valid contract
Corporate Governance, Controls and Corporate Social Responsibility45%- Roles and responsibilities of directors and officers
- Principles and frameworks of corporate governance
- Internal control and risk management
- External audit and assurance
- Corporate social responsibility and sustainability
Business Ethics and Ethical Conflict30%- CIMA Code of Ethics and professional values
- Concepts of ethics and business ethics
- Identification and resolution of ethical dilemmas
- Ethics vs law and regulation
Company Administration10%- Company financing and capital
- Corporate insolvency and administration
- Formation and constitution of companies
- Types of business organizations

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

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

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

In relation to registering a company limited by shares, which of the following is correct?

  • A. If the promoters fail to submit Articles of Association to the Registrar of Companies, the company cannot be registered.
  • B. If the promoters fail to submit Articles of Association to the Registrar of Companies, the company will be registered but will have no Articles of Association applicable to it.
  • C. If the promoters fail to submit Articles of Association to the Registrar of Companies, the provisions of Table A automatically apply.
  • D. If the promoters fail to submit Articles of Association to the Registrar of Companies, the documents will be returned to the promoters with a request for Articles to be submitted.
Answer: C

Which of the following statements are correct regarding companies'?
1. Both public and private companies must have a minimum amount of share capital before they can commence trading.
2. The shareholders of both public and private companies cannot interfere in the management of the company.
3. The minimum number of directors for both public and private companies is two

  • A. 2 and 3 only
  • B. 1 only
  • C. 1 and 2 only
  • D. 2 only
Answer: B

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

You are at a conference. The finance director of one of your competitors is boasting about top secret plans that she says will give her company market dominance. As she walks into a conference session, she accidently drops a folder marked "private and confidential". No one else notices and you are left alone in the room with the folder. Which of the following would be an ethical course of action and why?

  • A. Read the contents in the hope that you can help your company by preventing your competitor's plans
  • B. Return the folder to your competitor unopened because this is what you would hope would be done if you were in her situation
  • C. Give the folder to a journalist friend at the conference because it is in the public interest to expose the company's plans
  • D. Read the contents in order to teach the arrogant finance director a lesson
Answer: B

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