Summer Certification Limited Time 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code = getmirror

Home
CIMA
CIMA Certificate
BA4
Fundamentals of Ethics, Corporate Governance and Business Law Questions and Answers

Pass the CIMA Certificate BA4 Questions and answers with ExamsMirror

Practice at least 50% of the questions to maximize your chances of passing.

Exam BA4 Premium Access

View all detail and faqs for the BA4 exam

Go to Exam

698 Students Passed

96% Average Score

92% Same Questions

Viewing page 8 out of 14 pages

Viewing questions 106-120 out of questions

Questions # 106:

Michael is conducting a social and environmental audit on a chemicals factory. Which of the following should he review?

Options:

Emissions levels and the procedures the factory has in place to manage them.

Wastage levels and the procedures the company has in place to manage them.

Recycling targets and procedures.

Adherence to health and safety procedures.

Operational efficiency.

Suitability of the project plan, and project management process.

Adherence to rules and procedures.

Answer

A, B, C, D

Questions # 107:

Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?

Options:

The separation of the roles of Chairman and Chief Executive

The appointment of independent non-executive directors to the Board

The establishment of a Risk Committee

The appointment of a competent Company Secretary

Answer

Questions # 108:

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?

Options:

Yes - but only if the waste causes damage to the local environment

Yes - the manager who created the spill has behaved unethically and should be disciplined

Yes - the company has a duty to report something that might breach environmental legislation and could cause environmental damage

No - the leak was a mistake, so this is not an ethical issue

Answer

Questions # 109:

Which of the following do CIMA members NOT have a specific duty to do?

Options:

Observe the highest standards of conduct and integrity

Uphold the good standing and reputation of the profession

Refrain from any conduct which might discredit the profession

Uphold the good standing and reputation of their employer

Answer

Questions # 110:

Which of the following is NOT a personal quality expected of professional accountants by CIMA?

Options:

Relativity

Reliability

Responsibility

Respect

Answer

Questions # 111:

Pablo and Paula are in discussions with a potential buyer over the sale of their house. They tell the potential buyer that if they want to purchase the house for the full amount of £200,000, they'll need to send a letter that

confirms their offer by Friday. If they don't receive such a letter by then, they'll withdraw the house from the market.

Friday comes and no letter arrives. However, it turned out the potential buyer actually posted the letter on the Monday before, and it simply got lost in the post. The letter eventually turns up on the following Monday.

Baring this in mind, are Pablo and Paula legally obliged to sell their house?

Options:

Yes - Because the potential buyer sent the letter before the closing date.

Yes - The potential buyer can choose to accept Pablo and Paulo's price whenever he wants, providing that he hasn't already declined it.

No - Because they received the letter after the closing date they do not have to accept the potential buyer's offer.

No - They can decline the potential buyer's request at any time, regardless of when they received the letter.

Answer

Questions # 112:

Which of the following can consideration take the form of?

Options:

Money + Goods + Services

Money

Goods

Services

Money + Goods

Money + Services

Answer

Questions # 113:

Which of the 'fundamental principles' of CIMA's Code of Ethics is defined as follows?

"A professional accountant should not allow bias, conflict of interest or undue influence of others to override professional or business judgments"

Options:

Integrity

Objectivity

Professional competence and due care

Professional behavior

Answer

Questions # 114:

Zed plc wishes to issue £500,000 of shares on terms that the holders will receive a dividend before the other shareholders and they will be bought back by the company in 12 months' time. Which of the following best describes these shares?

Options:

Ordinary shares

Redeemable ordinary shares

Preference shares

Redeemable preference shares

Answer

Questions # 115:

Why does life-long learning require commitment? Choose TWO options.

Options:

Rapid advances in technology

Evolving regulations

Career progression

Computer virus-protection

Answer

A, B

Questions # 116:

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.

Options:

(i) only

(i) and (ii) only

(ii) and (iii) only

(iii) only

Answer

Questions # 117:

According to CIMA, what is accountability?

Options:

Being responsible to someone and for something or action

Being able to explain the actions that one has taken

An important aspect of the profession and of leadership in the wider business environment

All of the above

Answer

Questions # 118:

Which of the following is incorrect in relation to the memorandum of association when registering a company limited by shares?

Options:

The memorandum must be in the prescribed form

The memorandum must state the objects for which the company is being registered

The memorandum must state that the subscribers agree to take at least one share each

The memorandum must state that the subscribers wish to form a company under the Companies Act 2006

Answer

Questions # 119:

A advertised her motor car for sale in a local newspaper at a price of £5,000.

Which of the following is correct?

Options:

The advertisement is an invitation to treat.

The advertisement constitutes an offer which may be accepted by anyone who can pay the price.

If B telephones A and asks if he can pay by installments, his call would amount to a counter offer.

If C telephones A and offers £4,500, she has made a counter offer.

Answer

Questions # 120:

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.