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

BA4 Practice Questions

Fundamentals of Ethics, Corporate Governance and Business Law

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Total Questions : 661

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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 # 51

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:

Options:

Professional behavior

Confidentiality

Objectivity

Integrity

Discussion 0

Question # 52

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?

Options:

Do nothing: professionally, J is bound to respect the confidentiality of the information he has received

Tell his friend: he has an obligation to his friendship

Leak the information: that way he can let his friend know, but the information won't be traced back to J

Resign: J can't carry on working at the company whilst he is personally compromised

Discussion 0

Question # 53

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.

Options:

(i) only

(i), (ii) and (iii)

(ii) only

(ii) and (iii) only

Discussion 0

Question # 54

Which of the following does not apply to a private company which is about to declare a dividend?

Options:

There must be profits available for distribution as a dividend.

The company must have accumulated realized profits.

The company's net assets must equal the total of called up share capital plus un-distributable reserves.

The company must take account of accumulated realized losses.

Discussion 0

Question # 55

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

Options:

(i) only

(i) and (ii) only

(ii) only

(ii) and (iii) only

Discussion 0

Question # 56

Who is entitled to sue the directors for a breach of statutory duty?

Options:

The board.

Any shareholder.

The company.

The holders of the majority of the company's shares.

Discussion 0

Question # 57

Which of the following countries does not have a written constitution?

Options:

The United Kingdom

Poland

Germany

Italy

Discussion 0

Question # 58

CIMA's report on 'Practical Proposals to Improve Corporate Governance Disclosure' explores a range of ideas Which of the following statements is correct?

Options:

In focusing on improving corporate governance disclosure the skills, experiences and personalities of the board should explain how the board ensures robust decision-making

In focusing on improving corporate governance disclosure the board activities should be linked into key aspects of the corporate performance and strategic development to enable users to evaluate the effectiveness of the board

In focusing on improving corporate governance disclosure the information provided should be standardised to enable shareholders to compare performance with other companies.

In focusing on improving corporate governance disclosure the board should evaluate its own effectiveness by focusing on how its actions have improved profit.

Discussion 0

Question # 59

Which of the following is incorrect?

Options:

All courts below the Supreme Court may refer a case involving European Law to the European Court of Justice for a preliminary ruling.

Supreme Court must refer a case involving European Law to the European Court of Justice for a preliminary ruling.

An English court is not bound to give effect to a preliminary ruling of the European Court of Justice.

A preliminary ruling of the European Court of Justice is sent back to the Court which referred the question and must be given effect by that court.

Discussion 0

Question # 60

Which of the following is incorrect in relation to a company registered after the Companies Act 2006 was fully in force?

Options:

The company is to be treated as if it has unlimited objects.

The company may choose to restrict its objects by including provisions to that effect in its Articles of Association.

The company will not be able to place any restrictions on its objects clause.

If the company has restrictions on its objects they may be amended by special resolution.

Discussion 0

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