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CIMA BA4 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Corporate Governance, Controls and Corporate Social Responsibility | 45% | - Corporate social responsibility
|
| Topic 2: Company Administration | 10% | - Corporate legal administration
|
| Topic 3: Business Ethics and Ethical Conflict | 30% | - Ethical principles and professional behaviour
|
| Topic 4: General Principles of Legal System, Contract and Employment Law | 15% | - Business law fundamentals
|
CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
Which of the following is incorrect?
- A. An Act of Parliament is a superior source of law to a decision of the Supreme Court.
- B. Where there is a conflict between English Law and European Law, European Law prevails.
- C. Where there is a conflict between equity and the common law, the common law prevails.
- D. A decision of the Supreme Court is a superior source of law to a decision of the High Court.
Correct Answer: C 🗳️
Which THREE of the following are characteristics of Limited Liability Partnerships ("LLPs")?
- A. An LLPs partners are jointly and severally liable for the debts of the LLP
- B. LLPs are usually created by formal registration under statute
- C. LLPs have no perpetual succession
- D. LLPs can enter into contracts in their own name
- E. LLPs can hold property in their own name
Correct Answer: B,D,E 🗳️
Which of the following statements are correct in relation to the purpose of the OECD principles of corporate governance?
1. The principles are regarded by OECD members as representing a common basis essential for the development of good corporate governance practice
2. The principles are intended to be a substitute for individual government's proposals for governance best practice.
3. The principles are intended for the use of OECD members only.
- A. 2 and 3 only
- B. 2 only
- C. 1only
- D. 1 and 2 only
Correct Answer: C 🗳️
You work for a manufacturing company and are told that one of the line managers made a genuine mistake that led to the discharge of waste material into a local river. Your managing director says that the company cannot afford a large fine and demands that no one reports the waste spillage or mentions it again. Is this an ethical issue and why?
- A. Yes - the manager who created the spill has behaved unethically and should be disciplined
- B. Yes - but only if the waste causes damage to the local environment
- C. Yes - the company has a duty to report something that might breach environmental legislation and could cause environmental damage
- D. No - the leak was a mistake, so this is not an ethical issue
Correct Answer: C 🗳️
Which of the following is INCORRECT in relation to the board of directors of a private company limited by shares?
- A. If there are an equal number of votes for and against a proposal before the board the negative views prevail and the proposed resolution is defeated
- B. The board cannot delegate its authority
- C. The board may reach a decision by written resolution
- D. The board reaches its decisions by majority vote
Correct Answer: B 🗳️
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