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CIMA BA4 Exam Syllabus Topics:

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

1. Who is responsible for identifying and managing fraud?

A) Management
B) External auditors
C) Internal auditors
D) Management and internal auditors
E) External auditors and internal auditors
F) Management and external auditors

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

A) The establishment of a company website
B) The appointment of independent non-executive directors to the Board
C) The appointment of a competent Company Secretary
D) The separation of the roles of Chairman and Chief Executive

3. Which of the following is correct?
(i) All courts below the Supreme Court may refer a case involving European Law to the European Court of Justice for a preliminary ruling.
(ii) The Supreme Court must refer a case involving European Law to the European Court of Justice for a preliminary ruling.
(iii) An English court is not bound to give effect to a preliminary ruling of the European Court of Justice.

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

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

A) The establishment of an audit committee
B) The appointment of independent non-executive directors to the Board
C) The separation of roles of Chairman and Chief Executive
D) The appointment of a senior Government representative to the Board

5. Members of private companies often enter into so-called "shareholder agreements". Which of the following elements of a shareholder agreement are NOT true of articles of association?
(i) A shareholder agreement is a private document not open to public inspection.
(ii) All the provisions of a shareholder agreement have contractual force.
(iii) The terms of a shareholder agreement can only be amended by unanimous consent and not by majority agreement.

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

Solutions: