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BA4 Fundamentals of Ethics, Corporate Governance and Business Law is now Stable and With Pass Result | Test Your Knowledge for Free

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Fundamentals of Ethics, Corporate Governance and Business Law

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Total Questions : 661

Dive into our fully updated and stable BA4 practice test platform, featuring all the latest CIMA Certificate exam questions added this week. Our preparation tool is more than just a CIMA study aid; it's a strategic advantage.

Our free CIMA Certificate practice questions crafted to reflect the domains and difficulty of the actual exam. The detailed rationales explain the 'why' behind each answer, reinforcing key concepts about BA4. Use this test to pinpoint which areas you need to focus your study on.

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Question # 41

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?

Options:

A.  

Yes. T has a duty to maintain his professional knowledge

B.  

No. T has a contractual duty to his employer; he can't take time off for CPD at this time

C.  

Yes. T should not be doing two people's work

D.  

No. T is an experienced accountant and doesn't need training

Discussion 0
Question # 42

Who should check that a company's financial statements provide a true and fair view of its financial performance?

Options:

A.  

The auditor and the company

B.  

The auditor

C.  

The company

D.  

Shareholders

E.  

The auditor and shareholders

F.  

The company and shareholders

Discussion 0
Question # 43

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'?

Options:

A.  

No. The contractor is being paid to build a bridge with tax payers' money.  If it is built with poor quality materials it may collapse, wasting money, and potentially causing an accident

B.  

Yes. Mr X used the money to get help for his wife. The bridge was built anyway

C.  

Yes. Mr X needed the money to help his wife - family is more important

D.  

Yes. Mr X has a duty to do as his client asked

Discussion 0
Question # 44

Which of the following is correct?

Options:

A.  

A special resolution may be passed by 51% of the shareholders who are present voting in favor of the proposal either in person or by proxy.

B.  

A special resolution may be passed by 75% of the shareholders who are present voting in favor of the proposal either in person or by proxy.

C.  

A special resolution may only be passed by 75% of all the company's shareholders voting in favor of the proposal either in person or by proxy.

D.  

A special resolution may only be passed by all the company's shareholders voting in favor of the proposal either in person or by proxy.

Discussion 0
Question # 45

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?

Options:

A.  

The loan is void as Dee Ltd has acted ultra virus.

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 ultra virus the directors who will be personally liable for any loss caused to the company, unless their actions are ratified by the shareholders.

Discussion 0
Question # 46

Which of the following is correct?

Options:

A.  

A contract is frustrated when something happens, after it has been entered into, which renders the contract more difficult to perform.

B.  

A contract is frustrated when something happens, after it has been entered into, which renders the contract impossible to perform.

C.  

A contract is frustrated when a party expressly agrees to manufacture and supply goods and then discovers that they will be far more expensive to produce than they thought at the time of the contract.

D.  

A contract is frustrated if it is impossible to perform at the time that it is made.

Discussion 0
Question # 47

Which of the following is the responsibility of the Chairman, according to the UK Corporate Governance Code?

Options:

A.  

Authorizing major investments

B.  

Controlling the workings of the Board

C.  

Operational control

D.  

Carrying out the policies of the Board

Discussion 0
Question # 48

Which of the following is incorrect in relation to a reduction of capital by a private company?

Options:

A.  

The company must pass a special resolution to authorize the reduction of capital.

B.  

The reduction must be approved by the court.

C.  

It is not necessary for the company’s Articles of Association to authorize a reduction of capital.

D.  

The directors must make a solvency statement.

Discussion 0
Question # 49

Regarding auditor remuneration, a self-interest threat to professional competence and due care is created if

Options:

A.  

a gift from a client is accepted

B.  

the competitive fee quoted did not recognize the complexity of the assignment

C.  

the auditor accepts a referral of a new client from an existing client

D.  

a professional accountant in public practice solicits new work through advertising or other forms of marketing

Discussion 0
Question # 50

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"

Options:

A.  

Integrity

B.  

Objectivity

C.  

Professional competence and due care

D.  

Professional behavior

Discussion 0
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