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

'Remuneration' is one of the main principles in the Corporate Governance Code. Which of the following is NOT best practice under the 'Remuneration' principle?

B is invited to a big tennis final by one of her clients. Afterwards there is a private party at the client's home. B has too much to drink, and the client ends up sending her home in a taxi.  Which fundamental principle has B failed to live up to?

Cameron runs his own chain of ice cream shops. However, his business recently accrued a lot of debt due to a sharp rise in the price of milk, and he is now forced to shut the whole operation down.

Who is liable for the debt?

SuperSole is a large shoe company that sells its products all over the world. It has many factories and stores in many different countries, and its yearly revenues often exceed £100 million. The company is also listen on

the stock exchange.

Should SuperSole have its own internal auditing department?

Being able to be trusted by others to be dependable reflects the personal quality identified by the CIMA Code of Ethics as:

The Global Reporting Initiative (GRI) has produced Sustamability Reporting Guidelines, setting out categories and aspects which should be addressed through sustainable reporting.

Place the GRI categories next to the appropriate aspect of sustamability below.

Which THREE of the following statements are correct regarding the CIMA Code of Ethics for Professional Accountants?

Which of the following is correct in relation to international relations?

(i) International regulations are voluntarily entered into by commercial and professional bodies to standardize practices and procedure to make it easier to enter into international trading agreements.

(ii) International regulations which have been agreed by the professional bodies of different states are only binding on the members of those bodies or those who choose to adopt them.

(iii) International regulations may attain the force of law by being adopted by the legislatures of individual states

Rank the following, starting with the highest court:

(i) Crown Court

(ii) Supreme Court

(iii) Magistrates

(iv) Court of Appeal (Criminal)

The board of Wye Ltd has resolved to issue £100,000 of redeemable preference shares. Which of the following is correct?

(i) The company must have issued at least one non-redeemable share.

(ii) The company must redeem them at not less than their nominal value.

(iii) A holder of a redeemable share must also hold at least one ordinary share in the company.

S is assistant management accountant for a large telecommunications company. S has become aware that the company is offering different levels of discount to different corporate customers. S is concerned that this is unethical, so she mentioned it to the Finance Director during her most recent appraisal. The Director seemed amused at S's concern, and said that such a situation was 'perfectly normal'.

 

Which ONE of the following would it be appropriate for S to do?

Which of the following entitles the innocent party to cancel the contract?

(i) A breach of a warranty.

(ii) A breach of a condition.

(iii) An express term authorizing termination of the contract.

The IFAC Code of Ethics applies:

A manufacturing company has a policy of only buying raw materials which are produced within a 100 kilometer radius of its factory. This is an example of what aspect of CSR?

Which of the following is correct in relation to the control of boards of directors of public limited companies? 

i. The boards of public limited companies are under the legal control of the shareholders

ii. The majority of the shares in public limited companies are held by institutional investors who are more concerned with capital growth and income than the internal management of public limited companies

iii. As a general rule, private investors in the shares of public limited companies have insufficient power to influence the activities of the board.