Summer Sale Limited Time 65% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: ecus65

CIMA BA4 - Fundamentals of Ethics, Corporate Governance and Business Law

CIMA BA4 Premium Access     Download Demo    
Page: 10 / 14
Total 661 questions

Which of the following types of board committee are recommended by the UK Corporate Governance Code? 

(i) Nomination Committee

(ii) Audit Committee

(iii) Quality Assurance Committee

A.

(i) only

B.

(ii) only

C.

(i) and (ii) only

D.

(ii) and (iii) only

Which of the following can consideration take the form of?

A.

Money + Goods + Services

B.

Money

C.

Goods

D.

Services

E.

Money + Goods

F.

Money + Services

Which of the following statements is incorrect in relation to the Memorandum of Association of a company which is registered after the Companies Act 2006 is fully in force?

A.

The Memorandum of Association will no longer be a company's superior constitutional document.

B.

The Memorandum of Association must state that the subscribers wish to form a company under the Act.

C.

The Memorandum of Association must state that the subscribers agree to become members of the company.

D.

The Memorandum of Association must contain a statement of the company's authorized share capital.

Completing work within established deadlines reflects the personal quality identified by the CIMA Code of Ethics as:

A.

Responsibility

B.

Accuracy

C.

Timeliness

D.

Tardiness

Which of the following is CORRECT?

(i) A company limited by shares is a legal person separate and distinct from those who own and manage the company

(ii) If the company structure is used as a mere façade for fraudulent purposes the company but not the directors or shareholders can be held liable

(iii) If the company has carried on business despite the fact that insolvency appeared inevitable the directors may be personally liable for the debts contracted.

A.

(i) only

B.

(i) and (ii) only

C.

(i) and (iii) only

D.

(ii) and (iii) only

High profile corporate scandals in the past decade have had an effect on which of the following?

A.

Public trust in business

B.

Legislation in the US and elsewhere

C.

Public trust in accountants

D.

All of the above

Which one of the following is NOT one of the fundamental principles of CIMA's Code of Ethics?

A.

Integrity

B.

Objectivity

C.

Confidence

D.

Professional behavior

According to the CIMA Code of Ethics, which of the following categories describe common threats to compliance with the fundamental principles? Please select all that apply.

A.

Self-interest threats

B.

Self-review threats

C.

Familiarity threats

D.

Intimidation threats

Which of the following is an 'interest stakeholder' in an organization?

A.

Customer

B.

Employee

C.

Government

D.

Competitor

Which of the following CANNOT be carried out by a simple contract? 

A.

A contract for the sale of a motor car.

B.

A contract of employment.

C.

A contract for the sale of land.

D.

A contract for the provision of services.

Which of the following may be liable to contribute to the assets of the company in the event of the company carrying on business at a time when it appeared that insolvency was inevitable?

A.

The current directors and shareholders of the company.

B.

The current and former directors of the company.

C.

The current directors of the company.

D.

The current directors and former shareholders of the company.

C is a professional accountant He encounters an ethical dilemma in his role and wishes to seek help in resolving it. Which of the following would NOT be an appropriate source of advice?

A.

The CIMA ethics helpline

B.

Legal advisors.

C.

The external auditors.

D.

The internal whistle-blowing helpline

Decklt is a skateboard manufacturer that is ethically run and has a good reputation.

However, it has just transpired that one of their suppliers - with whom they have a good relationship with due to their cheap prices - is involved in a serious fraud case.

What should Decklt do?

A.

Immediately cut all ties with the company and look for a different supplier.

B.

Stick with the supplier as they won't be able to find cheaper prices elsewhere.

C.

Stick with the supplier but let the relevant regulatory bodies know that Decklt had nothing to do with their illicit activity.

D.

Immediately cut all ties with the supplier and discontinue all products that are made using their materials.

In relation to the law of misrepresentation, which of the following is correct?

A.

The innocent party is entitled to claim damages under the tort of negligence for all types of misrepresentation.

B.

A person is not entitled to rescind a contract which was induced by an innocent misrepresentation.

C.

A person is only entitled to a remedy under the Misrepresentation Act where the person who made the misrepresentation is a party to the contract.

D.

The Misrepresentation Act may be used to obtain damages for fraudulent misrepresentation.

In which of the following business organisations do the members have limited liability and the ability to keep the constitution private?

A.

A limited liability partnership

B.

A sole trader

C.

A company limited by shares

D.

A general partnership