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CIMA BA4 Exam Syllabus Topics:

CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:

Question 1

Which of the following statements is correct?

A. An employer has a duty to provide a full and comprehensive reference.
B. An employer has a duty to provide a reference.
C. An employer only has a duty to provide a reference for employees with one year's continuity of employment.
D. An employer has no duty to provide a reference.

Question 2

Which of the following statements is correct?
(i) In the event of a conflict between English Law and European Law, English Law prevails.
(ii) The Supreme Court is the highest court in the United Kingdom.
(iii) The High Court is bound by a ratio decidendi of the Supreme Court.

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

Question 3

X owns 51% of the shares in X Ltd. Y and Z are the only directors of X Ltd. Which ONE of the following is CORRECT?

A. X can force Y and Z to declare a dividend
B. X can dismiss Y and Z for any reason by using his majority vote
C. X can give directions to Y and Z by passing ordinary resolutions ordering them to comply with his wishes
D. X can use his votes to amend the articles and impose new obligations on Y and Z

Question 4

In relation to international regulations, which of the following is correct?
i. International regulations seek to establish common standards between professions practicing in different States so as to further international cooperation and agreement.
ii. International regulations agreed by the professional bodies of different States have the force of international law.
iii. International regulations which harmonies standards and procedures may be incorporated into contracts by commerce and the professions.

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

Question 5

Which of the following is incorrect in relation to the remedy of damages?

A. Damages will not normally be awarded for the distress caused to the innocent party by the breach.
B. Damages are designed to compensate the innocent party and to punish the contract breaker.
C. A contract breaker is liable for special losses which are within his contemplation.
D. A contract breaker is liable for losses which arise naturally from the breach.

Solutions: