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CIMA BA4 Exam Syllabus Topics:

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

1. Which ONE of the following was NOT a recommendation of the Cadbury Committee Report 1992?

A) Executive directors should not be offered service contracts for more than five years unless approved by the shareholders in a general meeting
B) Independent non-executive directors should be appointed to the boards of listed companies
C) The remuneration packages of executive directors should be agreed by a remuneration committee wholly or mainly comprising non-executive directors
D) An audit committee consisting of a majority of non-executive directors should be established to oversee the company's finances

2. Which of the following is incorrect?

A) The Articles of Association may be altered by special resolution.
B) A company's Articles cannot provide that the Articles are unalterable.
C) Subject to the company's Articles of Association, shareholder approval is not required to enable the company to borrow money.
D) Subject to the company's Articles of Association, shareholder approval is not required to authorise the issue of shares direct to one person for a non-cash consideration.

3. B was an employee of Exe plc but his line manager made it practically impossible for him to continue his employment. B resigned without giving Exe plc any notice as required by his contract of employment. Which of the following is correct?

A) If B's resignation is regarded as constructive dismissal he will still be able to claim against Exe plc but his failure to provide notice will reduce any compensation awarded.
B) If B's resignation is regarded as constructive dismissal then his failure to provide notice will prevent any claim under unfair dismissal but not under wrongful dismissal.
C) As B failed to provide any notice he has no claim against Exe plc even if B's resignation is regarded as constructive dismissal
D) If B's resignation is regarded as constructive dismissal he will be able to claim compensation from Exe plc and the fact that he has failed to provide notice will be regarded as irrelevant.

4. Which of the following does the IFAC Code of Ethics establish?

A) Standards of behavior for professional accountants
B) Judicial requirements for professional accountants
C) Legal requirements for professional accountants
D) Standards of commitment for professional accountants

5. Evidence suggests that during a recession, companies with a clear sense of ethical direction will:

A) Be a poor investment
B) Be more expensive to run
C) Lose business to unethical companies
D) Continue to be profitable

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