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CIMA BA4 Exam Syllabus Topics:

CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:

1. Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?

A) The identification of an independent director as primary shareholder contact
B) The establishment of an audit committee
C) The appointment of executive directors to the Board
D) The separation of the roles of Chairman and Chief Executive

2. What is a fundamental attribute of a competent accountant?

A) Ability to communicate effectively
B) Ability to calculate correctly
C) Ability to exercise good judgment
D) Ability to be efficient

3. Which of the following is correct in relation to the memorandum of association when registering a company limited by shares?

A) The country in which the company is to have its registered office must be specified in the memorandum
B) The memorandum must state the company's authorised share capital
C) The name of the company must still be specified in the memorandum
D) The information in the objects clause in the memorandum of a company registered before the Companies Act 2006, is treated as part of the company's articles of association

4. In the event of the directors of a company limited by shares ignoring a provision in its Articles of Association which is for the benefit of the shareholders, which of the following is correct?

A) The shareholders as a whole may sue the directors for breach of contract.
B) Individual shareholders have no remedy against the company.
C) Individual shareholders may sue the directors for breach of contract.
D) Any or all of the shareholders may sue the company for breach of contract.

5. SuperSole eventually decides to outsource its internal audit.
Which of the following are benefits it might experience from doing so?
Select ALL that apply.

A) Flexibility to increase or reduce in size
B) Less time taken
C) Readily available expertise
D) Less risk of confidential information leaking
E) Lower costs
F) More independent auditing process

Solutions: