CIMA Certification BA4

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CIMA BA4 Exam Syllabus Topics:

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

1. B is employed by Zed plc and has suffered an occupational injury.
Which of the following is correct?
Zed plc may be liable to B for:
i. breach of an implied term in B's contract of employment
ii. breach of the duty to take care in the tort of negligence
iii. breach of statutory duty

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

2. You work for a clothing retailer. Which of the following corporate issues is NOT related to ethics or social responsibility?

A) Knowingly selling fake versions of this season's high profile designer clothes
B) The use of natural or organic material in your clothes
C) Sweatshop labor
D) Whether your clothes appeal to your target markets

3. 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 facade 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.

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

4. According to CIMA, which of the following are ways in which corporate governance reporting could be improved?
Select ALL that apply.

A) Make better use of the Chairman's message.
B) Widen the remit of the governance report.
C) Ensure company boards use their AGM to communicate with investors and encourage their participation.
D) Ensure that there is a dialogue between the business and its shareholders.
E) Ensure that compliance reporting is separate from governance reporting.

5. V is an accountant for HIJ company. This large international jewelry manufacturer and retailer both mines, designs and sets and retails its gemstones It has significant mining operates in Country A and Country Z.
It has been a key player in the development of ethical employment mining practices especially in advanced safety policies and it received a United Nations award for action against Blood Diamonds It publishes a detailed CSR report which highlights how its approach to safety is a core business value and how its KPIs around employee turnover and accident have improved annually.
Vs company has recently appointed a new CEO who is taking an aggressive stance to improving profit margins and wants to reduce the expenditure on safety, a key aspect of the approach to ethical mining practices in HIJ company Which THREE of the following statements would V use to support the continuation of the ethical policy in this new culture? The ethical treatment of the mining workforce

A) increases productivity through fewer accidents and lower staff turnover
B) reflects HIJ company's core business values
C) is the right thing to do
D) reduces the risk of accidents and HIJ company's insurance premiums
E) improves HIJ company's reputation and access to investment from a wider range of investors

Solutions: