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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 are TWO reasons why new legislation might be introduced in response to corporate scandals?

A) To punish individuals for adhering to codes of ethics
B) To prevent this type of unethical behavior by making it illegal
C) To encourage companies to make their own decisions about ethical matters
D) To enforce minimum standards of behavior

2. A situation has arisen which will involve you participating in transactions which are legally correct but ethically unsound.
Which of the following is correct?
(i) It is not possible for a transaction to be both legal and ethically unsound.
(ii) As long as the transactions are legal you are acting properly in participating.
(iii) One of the purposes of ethical codes is to guide professionals as to how to behave even when the proposed transactions are legal.

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

3. Which of the following is correct?

A) A contract is frustrated when a party expressly agrees to manufacture and supply goods and then discovers that they will be far more expensive to produce than they thought at the time of the contract.
B) A contract is frustrated if it is impossible to perform at the time that it is made.
C) A contract is frustrated when something happens, after it has been entered into, which renders the contract impossible to perform.
D) A contract is frustrated when something happens, after it has been entered into, which renders the contract more difficult to perform.

4. Which of the following accountants have breached CIMA's ethical principle of professional behaviour:
Select ALL that apply.

A) Mike - Posted a series of disparaging tweets about a rival external auditing firm.
B) Sara - Accepted an offer of a free week's stay at a hotel she was due to audit.
C) Tim - Told his friends at the pub how much money one of his clients had made in the last financial quarter.
D) Kara - Recently got a new job as a management account by lying about the number of accountancy qualifications she has.
E) Dave - Most recent set of financial reports were found to contain inaccuracies because he didn't check them when he was finished.

5. Which of the following are included in CIMA's practical proposals for better reporting of corporate governance?
1. The Chief Executive should communicate information regarding the performance of individual directors to the shareholders
2. The company should explain how the information needs of the shareholders have been met during the year
3. The Chairman's views on good governance and the culture of the board should be communicated

A) 1,2 and 3
B) 2 and 3 only
C) 1 and 2 only
D) 1 only

Solutions: