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CIMA BA4 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| General Principles of the Legal System, Contract and Employment Law | 15% | - Employment law essentials - Contract law basics - Legal system fundamentals |
| Business Ethics and Ethical Conflict | 30% | - Ethical dilemmas and resolution - Professional ethics principles - Nature and importance of ethics |
| Company Administration | 10% | - Types of business organisation - Administration and management of companies |
| Corporate Governance, Controls and Corporate Social Responsibility | 45% | - Role of board and directors - Corporate social responsibility (CSR) - Internal controls and audit - Principles of corporate governance |
CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
1. Which of the following statements regarding companies limited by shares and general partnerships is correct?
A) Private companies limited by shares and general partnerships are required to disclose financial information regarding the operation of the business to the general public
B) In the event of insolvency both a private company limited by shares and a general partnership may be placed in insolvent liquidation
C) Unlike a general partnership, a private company limited by shares may create a floating charge as security for a loan
D) Both a private company limited by shares and a general partnership are established by registration
2. Which of the following is correct?
i. A company intending to issue new shares for cash must first offer them to the existing shareholders.
ii. A company may dispense with the requirement to offer new shares to existing shareholders by passing a special resolution.
iii. A company issuing shares for a non-cash consideration is not required to offer the shares to the existing members first.
A) (ii) and (iii) only
B) (ii) only
C) (i), (ii) and (iii)
D) (i) only
3. 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.
A) (i), (ii) or (iii)
B) (i) or (iii) only
C) (i) or (ii) only
D) (i) only
4. Where a countries' rules protect whistleblowers. they usually only do so where there has been a
"qualifying disclosure" Which of the following statements best describes the minimum level of information which a whistleblower needs to have to make a "qualifying disclosure"?
A) A suspicion that serious malpractice has taken place
B) Certainty that at least one company rule is being breached or has been breached in the past
C) Reasonable grounds to believe that sufficiently serious malpractice is taking place
D) Knowledge that company rules are about to be breached
5. Which of the following is incorrect?
(i) Legal title cannot pass on a contract induced by misrepresentation.
(ii) Misrepresentation renders a contract voidable.
(iii) A victim of negligent misrepresentation may seek rescission and damages.
A) (i) and (iii) only
B) (ii) and (iii) only
C) (ii) only
D) (i) only
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: D |
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