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CIMA BA4 Exam Syllabus Topics:

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

1. You work for a publishing company. Which of the following corporate issues is NOT related to ethics or social responsibility?

A) Whether the paper used for the magazines comes from sustainably managed forests or can be recycled
B) Whether your company's magazines are more popular than competitor titles
C) Whether sales targets are so high that they implicitly encourage salespeople to ignore corporate values and principles
D) Whether advertisers are given more favorable editorial coverage than other companies that do not advertise in your company's magazines

2. All policies for governance and social responsibility are ultimately rooted in an organization's:

A) Stakeholder relationships
B) Values and code of ethics
C) The Government
D) The Board

3. A advertised his van for sale in the local newspaper at a price of £5,000.
In which of the following situations is a contract between A and B created?

A) B wrote to A accepting his offer to sell the van for £5,000.
B) B offered to buy the van for £4,500. A wrote to B accepting his offer but later changed his mind and sent an email to B withdrawing his acceptance. The email was read by B before he read A's letter of acceptance.
C) B offered to buy the van for £4,800. A wrote to B accepting his offer. B wrote back stating: "payment will be made over three months."
D) B wrote to A and offered to buy the van at £4,800. B stated "if I hear no more from you in the next three days I shall assume that you agree to sell the van to me at that price." Three days have now passed and B has heard nothing from A.

4. You are concerned that your boss may have been putting together misleading financial statements for some time. As a well known and well respected accountant, you are concerned that your boss might bring the profession into disrepute. Which TWO of the CIMA Code of Ethics fundamental principles does this affect?

A) Professional behavior and integrity
B) Objectivity and impartiality
C) Integrity and reliability
D) Objectivity and professional competence and due care

5. Which of the following is INCORRECT in relation to the UK Corporate Governance Code?

A) There should be a clear division of responsibilities between the Chairman and the Chief Executive.
B) No director should be involved in deciding his or her own remuneration.
C) All UK companies quoted on the London Stock Exchange have to include a statement of how the company has complied with the main principles set out in the Code.
D) The board should be made up of a majority of non-executive directors.

Solutions: