Fundamentals of Ethics, Corporate Governance and Business Law
Last Update 2 days ago
Total Questions : 661
Fundamentals of Ethics, Corporate Governance and Business Law is stable now with all latest exam questions are added 2 days ago. Incorporating BA4 practice exam questions into your study plan is more than just a preparation strategy.
By familiarizing yourself with the Fundamentals of Ethics, Corporate Governance and Business Law exam format, identifying knowledge gaps, applying theoretical knowledge in CIMA practical scenarios, you are setting yourself up for success. BA4 exam dumps provide a realistic preview, helping you to adapt your preparation strategy accordingly.
BA4 exam questions often include scenarios and problem-solving exercises that mirror real-world challenges. Working through BA4 dumps allows you to practice pacing yourself, ensuring that you can complete all Fundamentals of Ethics, Corporate Governance and Business Law exam questions within the allotted time frame without sacrificing accuracy.
Paul has been held personally liable to contribute to the assets of P Ltd as a result of his "fraudulent trading" under Section 213 of the Insolvency Act 1986. The court is about to disqualify Paul from acting as a director. What is the maximum period for which he may be disqualified?
You work for an accountancy firm and discover that a member of an assurance team has a significant conflict of interest. You take CIMA's Code of Ethics with you when you alert your board of directors as to why this is an important issue, but the board decides that the conflict of interest is not important. This is an example of tension between:
Which of the following statements apply to multinational corporations? Select ALL that apply.
Which THREE of the following statements are correct in relation to the essential elements of a contract?
Zed Ltd was incorporated in 2010 and has chosen to use the standard Model Articles of Association. The company is considering appointing Max as a director of the company.
Which of the following is incorrect?
(i) Max cannot be a director of the company unless he holds shares in the company.
(ii) Max cannot be a director of the company if he is an undischarged bankrupt.
(iii) Max cannot be a director of the company if he is subject to a disqualification order.
Bill is conducting an audit on a furniture manufacturer. There doesn't appear to be any major issues with the company and its finances. However, Bill has noticed that the company has adopted a new set of accounting
standards unusually early.
What should Bill do?
Which TWO of the following are examples of safeguards that may increase the likelihood of identifying or deterring unethical behavior?
F knows from preparing the accounts that the company she works for is going to have to make redundancies due to the recession. She also knows that, despite the recession, the Managing Director continues to enjoy lavish perks and even uses a private jet. What should she do?
Natthapong's toilet won't flush, so he hires a plumber to come over and fix it.
He tells the plumber what the problem is, and the plumber agrees to fix it.
However, once the builder supposedly finishes the job, Natthapong finds that it still won't flush.
Is he able to terminate the contract?
Charles is one of the three directors of Cee Ltd. The company has recently agreed to purchase Charles' house at its market value of £250,000. Which of the following is correct?
You have been asked to be involved in negotiations for the potential acquisition of another company. It so happens that your spouse is on the board of directors of that company. This affects the CIMA Code of Ethics fundamental principle of:
Complying with relevant laws and legislations demonstrates part of which CIMA Code of Ethics fundamental principle?
ABC Ltd has resolved to purchase the business of ST Ltd for £500,000. ABC Ltd is to pay ST Ltd for the business by issuing ordinary £1 shares rather than cash. As the market value of ABC Ltd's shares is £5 per share, ABC Ltd is to issue to ST Ltd 100,000 ordinary £1 shares. Which of the following is incorrect?
Being accountable for one's actions and decisions reflects the personal quality identified by the CIMA Code of Ethics as:
In relation to business names which of the following is CORRECT?
(i) Any business may trade under a business name.
(ii) If a business name is used the name of the owner of the business must be disclosed.
(iii) The business name of a private limited company must end with the word “Limited” or “Ltd”.
Which of the following is entitled to initiate court action on behalf of a company?
(i) The board.
(ii) The majority shareholders.
(iii) All the shareholders.
ABC Accountants has taken out an advert in its local paper to promote its services. Mr B, an account manager, is uncomfortable, as the advert says that ABC is expert in charitable tax issues, and he knows that none of the partners have that expertise. However, Mr B does not want to be thought of as a 'trouble maker' by bringing the matter up with his manager. Which TWO things should Mr B do?
Which of the following is NOT a 'financial stakeholder' of an organization?
In 2011 Exe Bank plc granted a loan of £200,000 to Wye Ltd secured by a fixed charge over the company's land and a floating charge over all the company's other assets. Wye Ltd remains solvent but has now failed to meet its monthly repayments for three months.
Which of the following options are available to Exe Bank plc?
(i) Sue Wye Ltd for breach of contract.
(ii) Appoint an administrator
(iii) Petition for the compulsory winding up of Wye Ltd.
Working late one evening, you see a colleague copying information on to series of CD Roms. He tells you that software is too expensive for him to afford for his home computer but that he needs the software for his own personal use and in case he might take work home at some point. Is this an ethical issue and why?
Which of the following are not owed duties by the directors?
(i) The company as whole.
(ii) Individual shareholders.
(iii) All the present and future shareholders.
An internal auditor discovered evidence of a fraud earned out by an employee who worked in the accounting department. The auditor concluded that the fraud had been possible because of unsatisfactory segregation of duties in the department.
Poor segregation between which of the following duties would provide the best opportunity for this type of fraud to occur?
Zed plc wishes to issue £500,000 of shares on terms that the holders will receive a dividend before the other shareholders and they will be bought back by the company in 12 months' time. Which of the following best describes these shares?
A Ltd is under contract to manufacture machinery for B Ltd for £200,000. Which of the following is a valid excuse for A Ltd failing to complete the contract on time?
Which of the following is NOT a 'financial stakeholder' of an organization?
Internal audit is considered best practice but is not required by law Which of the following does NOT describe a benefit of internal audit to the board of directors?
Demonstrating an attitude of esteem, deference, regard or admiration of others reflects the personal quality identified by the CIMA Code of Ethics as:
Which of the following is NOT an advantage of establishing a company by purchasing “off the shelf”?
(i) The company is already registered so that in general business may be commenced more quickly.
(ii) The purchase off the shelf company can be cheaper than registration of a new company.
(iii) The articles of association are tailor-made to the requirements of the purchaser.
Which of the following is correct in relation to a company's ability to have a restricted objects clause in its constitution?
(i) A company may restrict its objects in its constitution
(ii) Any clause restricting the company's objects should be included in the company's articles of association
(iii) The shareholders may pass a special resolution to alter the company's constitution by including a clause which restricts the company's objects
Jo is employed as management accountant of a large retailer. Jo has been asked to dismiss one of her colleagues for 'misconduct', but she is aware that the colleague has done nothing wrong and that her employer is trying to avoid paying any redundancy settlement. If Jo accepts the request, which of the following 'fundamental principles' of CIMA's Code of Ethics will be compromised?
The body responsible for reviewing the accountancy profession worldwide is:
An investigation has been launched against Company G, a supermarket, after suspicions were raised about its treatment of certain employees.
It was later found that Company G were guilty of direct discrimination.
Which of the following are the ways in which Company G were found to be directly discriminating?
Select ALL that apply.
AD company has recently appointed you as the head of their internal audit department and the head of the risk management committee. The internal audit department consists of a team of ten full time staff and other finance and IT staff are appointed into the internal audit team on an ad hoc basis as required. The rail time staff are all qualified accountants, some with CIMA and some with other professional bodies.
The company prefers to keep the full time staff complement to ten to manage the costs and the team have told you that they are often under considerable pressure to perform their operational and financial audit work and feel short staffed. The team therefore relies on the support of key members of the finance department and IT department, who are experts in their areas
You were appointed to the role by the audit committee and have been given authority to investigate all aspects of the business.
From your initial understanding of the internal audit function which TWO statements describe the strengths of the department?
T is a senior accountant, but knows he needs to update himself on recent changes in accounting practice. He has been too busy; his manager is off sick and T is taking responsibility for his work load. T decides to let his CPD slide. Another year won't matter. Is this an ethical issue?
Who should check that a company's financial statements provide a true and fair view of its financial performance?
Mr X's wife is gravely ill. He accepts money from a client to falsify some accounts. The client is a contractor, being paid by the Government to build a bridge over a river. The accounts now state that more expensive materials were used to build the bridge. The money helps Mr X pay for his wife's medical treatment. Is this an example of a 'victimless crime'?
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?
Which of the following is the responsibility of the Chairman, according to the UK Corporate Governance Code?
Which of the following is incorrect in relation to a reduction of capital by a private company?
Regarding auditor remuneration, a self-interest threat to professional competence and due care is created if
Which of the 'fundamental principles' of CIMA's Code of Ethics is defined as follows?
"A professional accountant should comply with the relevant laws and regulations and should avoid any action that discredits the profession"
When preparing financial statements, you are extremely careful not to omit relevant information, mislead readers or misstate facts. This demonstrates the CIMA Code of Ethics fundamental principle of:
As a member of the audit team of a large company, J has discovered that one of his close friends is in a part of the business which is going to be sold off, and his friend is likely to face redundancy. What should he do?
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.
Which of the following does not apply to a private company which is about to declare a dividend?
Which of the following need NOT be submitted in order to register a private company limited by shares?
(i) Articles of association
(ii) The name of the company secretary
(iii) A statement of share capital
CIMA's report on 'Practical Proposals to Improve Corporate Governance Disclosure' explores a range of ideas Which of the following statements is correct?
Which of the following is incorrect in relation to a company registered after the Companies Act 2006 was fully in force?
Which of the following is incorrect?
(i) All contracts must be in writing.
(ii) A contract to sell land must be in writing.
(iii) A contract of employment must be in writing.
How can a company help employees make the right decision when faced with a difficult situation?
Which of the following is correct?
(i) A contract for the sale of land must be in writing.
(ii) A consumer credit agreement must be in writing.
(iii) A contract of employment must be in writing.
You work for an airline company and discover a series of regular payments made to a lobbying group that campaigns to allow people freedom to fly as and when they choose without being taxed for contributing to global warming. The group's website includes specific commentary that claims to 'expose the myth of global warming'. Neither your company nor the lobbying group (which describes itself as 'independent') mention the financial link between your organizations. Is this an ethical issue and why?
In a situation where a professional accountant needs to choose in whose interest he or she is to behave and act, which of the following interests should he or she put first?
Zed plc has appointed Wye and Co (accountants) as auditors of the company. If the audit is carried out negligently which of the following are entitled to claim against the auditors?
One of your colleagues has just been poached by a competitor. You have reason to suspect that he has provided his new employer with sensitive information about your company that could disadvantage your employer. This affects the CIMA Code of Ethics fundamental principle of:
Which of the following requires the approval of 75% of all the company's shareholders who are entitled to vote?
How does CIMA support its members in their continual personal improvement?
Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?
Anne was induced to enter into a contract with Benny by his negligent misrepresentation. Which of the following is correct?
(i) Anne has a remedy against Benny in the tort of negligence.
(ii) Anne has a remedy against Benny under the Misrepresentation Act 1967.
(iii) Anne has a remedy in the tort of deceit.
In the UK, the body responsible for reviewing the regulatory activities of the professional accountancy bodies is:
Which of the following resolutions of a private company limited by shares CANNOT be effected by using the written resolution procedure?
(i) An ordinary resolution to dismiss a director.
(ii) A special resolution to misapply statutory pre-emption rights in relation to a new issue of shares.
(iii) An alteration of the articles of association.
The code of ethics of the professional body to which M belongs is very clear about the importance of non-discrimination on the grounds of race, gender, sexual orientation and religion. But, because of her particular religious convictions, M believes that homosexuality is wrong. This is an example of a tension between:
Which of the following is NOT one of the fundamental principles of CIMA's Code of Ethics?
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.
Which of the following identifies criminal as opposed to civil proceedings?
The UK Corporate Governance Code is primarily directed at which type of business organization?
Which of the following statements is incorrect in relation to the revised derivative action under section 260 of the Companies Act 2006?
(i) The action may be brought by a single shareholder.
(ii) The action may be brought in relation to an act of negligence by the directors.
(iii) The action cannot be brought in respect of a proposed act by the directors.
C sued D in the tort of negligence in order to recover compensation for injuries suffered as a result of D breaking his duty of care to
C.
For what injuries can C claim compensation?Wye Ltd has ordered goods from ABC plc and the directors of Wye Ltd have guaranteed that Wye Ltd will pay the agreed sum within one month of the delivery of the goods.
Which of the following is correct?
(i) The contract is between Wye Ltd and ABC plc and the directors cannot be forced to pay the amount due in any circumstances.
(ii) A contract of guarantee is only enforceable if it is evidenced in writing.
(iii) The directors of Wye Ltd can be forced to honor the guarantee in the event of Wye Ltd not paying the amount due.
Company X has a good CSR record, and ensures that its employees enjoy safe working conditions, reasonable work hours and are paid fairly Company Y is known to employ child laborers in the countries in which it operates, where the practice is not illegal Company X has entered into a point business partnership with Company Y to carry out a specific project. In order to comply with the OECD Guidelines, what best describes Company X's responsibilities?
A business that behaves ethically may experience which of the following benefits; Select ALL that apply.
A company is considering having an external audit. It knows the benefits of doing so, though is unsure of the disadvantages.
Which of the following are reasons why the company might not want to have an external audit?
Select ALL that apply.
Y is completing an internal audit work on the system to approve suppliers to JKL Company. Which of the following would NOT promote a sustainable approach to the company's relationship with it\suppliers?
N is a CIMA qualified accountant working within a complex and evolving organisation A new HR manager. Q, has been employed and has reviewed the salaries of the accounting team in order to reduce the expense to the company.
Q suggests that N's position could be outsourced to an accounting servicing company to save money. This outsourcing team does not employ professionally qualified accountants
N's finance director emphatically disagrees with Q's suggestion
Which THREE of the following are justifications for retaining N's services?
As a CIMA qualified accountant N
Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?
Which of the following is correct in relation to international relations?
(i) International regulations are voluntarily entered into by commercial and professional bodies to standardize practices and procedure to make it easier to enter into international trading agreements.
(ii) International regulations which have been agreed by the professional bodies of different states are only binding on the members of those bodies or those who choose to adopt them.
(iii) International regulations may attain the force of law by being adopted by the legislatures of individual states
Which of the following is correct in relation to corporate governance in the UK?
(i) If a listed public company in the UK fails to comply with the UK Corporate Governance Code, the company and the board may be prosecuted by the Financial Services Authority.
(ii) The duties of directors are codified in the Companies Act 2006 and breaches are enforceable by the company.
(iii) The ability of the majority of shareholders to dismiss a director for any reason whatsoever is the main sanction provided by the UK Corporate Governance Code.
Terry and Taylor are music producers in the UK who have decided to go into business together. They set up their partnership as an LLP and call itjammin' Records. Unfortunately their company quickly fails due to having
large debts.
Who is liable for these debts?
Avoiding any action that discredits the profession relates to which CIMA Code of Ethics fundamental principle?
How might an organization exercise ethical control over its staff? Select ALL that apply.
TESTED 12 May 2024
Hi this is Romona Kearns from Holland and I would like to tell you that I passed my exam with the use of exams4sure dumps. I got same questions in my exam that I prepared from your test engine software. I will recommend your site to all my friends for sure.
Our all material is important and it will be handy for you. If you have short time for exam so, we are sure with the use of it you will pass it easily with good marks. If you will not pass so, you could feel free to claim your refund. We will give 100% money back guarantee if our customers will not satisfy with our products.
