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CIMA BA4 Exam Syllabus Topics:

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

1. Miss B is working closely with Mr L to deliver an important report on the efficiency of Mr L's department. They have had to work late together several times, and last night they went out to dinner afterwards. Miss B is starting to think she may have feelings for Mr L.
Could her independence be called into question?

A) No, provided she does not act on her feelings and continues to be professional
B) Yes, having dinner with a work colleague can affect her independence of appearance
C) No, she is not actually dating Mr L so her independence of appearance is not compromised
D) Yes, her feelings could be influencing her independence of mind

2. Which of the following is correct?
(i) The Court of Appeal is bound by obiter dicta of the Supreme Court.
(ii) The High Court is bound by a Supreme Court ratio decidendi.
(iii) A ratio decidendi of the Court of Appeal is binding on the High Court.

A) (i), (ii) and (iii).
B) (i) only
C) (ii) and (iii) only
D) (i) and (ii) only

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

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

4. Which of the following need to be proved in order for there to be a misrepresentation? Select ALL that apply.

A) A false representation of the facts.
B) There was at least one witness when the misrepresentation occurred.
C) More than two parties were involved.
D) Distortion of facts.
E) An inducement to mislead one party into entering the contract.
F) Made by one party to the other before any contract is made.

5. The Articles of Association of Dee Ltd state that the company has power to borrow money and that the directors have authority to borrow up to £200,000 on behalf of the company. The board has resolved to purchase a piece of land for £300,000. The Midwest Bank plc has agreed to make a loan of £250,000 to Dee Ltd to acquire the land. Which of the following statements is correct?

A) The loan is void as Dee Ltd has acted ultra virus.
B) The loan is ultra virus the directors who will be personally liable for any loss caused to the company, unless their actions are ratified by the shareholders.
C) As the directors have exceeded their authority, the bank cannot enforce the loan against Dee Ltd.
D) As the directors have resolved to obtain the loan they have acted in accordance with the company's constitution.

Solutions: