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

Which of the following is correctly stated to be an advantage of carrying on business via a company limited by shares? 

(i) The liability of the company is limited.

(ii) In general the directors are not liable for the debts of the company.

(iii) The liability of the shareholders is limited.  

Which of the following are NOT recommended by the UK Corporate Governance Code?

(i) There should be a formal statement of the matters which require a board decision as opposed to a management decision.

(ii) Each company should establish a Nomination Committee made up entirely or mainly of non-executive directors.

(iii) The roles of Chairman and Chief Executive should be combined.

Which of the following is correct?

(i) A public company must hold an AGM.

(ii) A public company must give at least 14 days' notice of its AGM.

(iii) One of the purposes of an AGM is to provide an annual opportunity for the shareholders to question the directors regarding their management of the company. 

Which of the following is correct in relation to Section 14 of the Sale of Goods Act 1979 which implies a term into contracts for the sale of goods that the goods supplied will be of “satisfactory quality.”

(i) A breach of Section 14 enables the innocent buyer to cancel the contract and claim damages.

(ii) The parties to a contract for the sale of goods can choose to exclude Section 14.

(iii) Section 14 applies to contracts for the sale of new goods only and does not apply to sales of second-hand goods

R and P are the only shareholders in RP Ltd, each holding 100 ordinary £1 shares. They have both paid half the nominal value of the shares. The company has been placed in creditors' voluntary liquidation on the ground that it is unable to pay its debts.

 

Which of the following is correct?

Which of the following is NOT normally a stakeholder of an organization?

In relation to business names which of the following is CORRECT?

(i) Any business may trade under a business name.

(ii) If a business name is used the name of the owner of the business must be disclosed.

(iii) The business name of a private limited company must end with the word “Limited” or “Ltd”.

Which of the following statements is incorrect?

In a situation where a professional accountant needs to choose in whose interest he or she is to behave and act, which of the following interests should he or she put first?

Which of the following statements refer to the Sarbanes-Oxley Act?

Which of the following is presumed to be intended to create legal relations?

In furtherance of their duty to promote the success of the company under Section 172 of the Companies Act 2006, the directors are required to take account of amongst others, the company and its members, employees and suppliers.

 

Which of the following can enforce this duty against the directors?

C recently purchased some goods at an auction sale. Which of the following is correct?

(i) The contract was concluded by the fall of the Auctioneer's hammer.

(ii) The Auctioneer's call for bids was an invitation to treat.

(iii) Once the bidding had started, the Auctioneer was unable to withdraw the goods from the sale.  

Which of the following terms can be defined as follows?

 

"...the system by which companies are directed and controlled"

Y is completing an internal audit work on the system to approve suppliers to JKL Company. Which of the following would NOT promote a sustainable approach to the company's relationship with it\suppliers?