Exam Name: Fundamentals of Ethics - Corporate Governance and Business Law
Certification Provider: CIMA
Corresponding Certification: CIMA Certification
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CIMA BA4 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| General Principles of Legal System, Contract and Employment Law | 15% | - Business law fundamentals
|
| Corporate Governance, Controls and Corporate Social Responsibility | 45% | - Corporate social responsibility
|
| Business Ethics and Ethical Conflict | 30% | - Ethical principles and professional behaviour
|
| Company Administration | 10% | - Corporate legal administration
|
CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
Which of the following is correct?
- A. In England the government is not bound by the law.
- B. In England the government may delegate authority to a local authority to make law.
- C. In England the government can pass a law overruling any Act of Parliament.
- D. In England the government cannot make law without the authority of Parliament.
Correct Answer: D 🗳️
Why does life-long learning require commitment? Choose TWO options.
- A. Evolving regulations
- B. Computer virus-protection
- C. Career progression
- D. Rapid advances in technology
Correct Answer: A,D 🗳️
S is Assistant Management Accountant for a large telecommunications company. S has become aware that the company is paying fees to those government ministers responsible for the regulation of the telecommunications industry and for authorizing large public contracts. S is concerned that this is unethical, so she mentioned it to the Finance Director during her most recent appraisal. The Director seemed amused at her concern and said that such a situation was 'perfectly normal'.
Which TWO of the following would it be appropriate for S to do?
- A. Nothing further
- B. Ask for advice from the company's external legal advisors
- C. Ask for confirmation in writing from the Director
- D. Bring the matter to the attention of the Managing Director
- E. Request a further meeting with the Finance Director
- F. Resign
Correct Answer: B,D 🗳️
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. Redeemable preference shares
- B. Ordinary shares
- C. Redeemable ordinary shares
- D. Preference shares
Correct Answer: A 🗳️
B has been employed by Wye Ltd for 10 years. His contract of employment states that, if either Wye Ltd or B wishes to terminate the contract, each party must give the statutory minimum period of notice.
Which of the following statements is correct?
- A. B is entitled to 1 month's notice and Wye Ltd is entitled to 10 weeks' notice.
- B. Both B and Wye Ltd are entitled to 10 weeks' notice.
- C. B is entitled to 10 weeks' notice but Wye Ltd is entitled to only 1 week's notice.
- D. Both B and Wye Ltd are entitled to 1 week's notice.
Correct Answer: C 🗳️
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