Exam Name: Fundamentals of Ethics - Corporate Governance and Business Law
Certification Provider: CIMA
Corresponding Certification: CIMA Certification
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CIMA BA4 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Business Ethics and Ethical Conflict | 30% | - Concepts of ethics and business ethics - Ethics vs law and regulation - Identification and resolution of ethical dilemmas - CIMA Code of Ethics and professional values |
| Topic 2: General Principles of the Legal System, Contract and Employment Law | 15% | - Employment law, rights and obligations - Terms, breach and remedies of contract - Structure and sources of law - Essential elements of a valid contract |
| Topic 3: Corporate Governance, Controls and Corporate Social Responsibility | 45% | - External audit and assurance - Roles and responsibilities of directors and officers - Corporate social responsibility and sustainability - Principles and frameworks of corporate governance - Internal control and risk management |
| Topic 4: Company Administration | 10% | - Formation and constitution of companies - Corporate insolvency and administration - Company financing and capital - Types of business organizations |
CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
In relation to conditions and warranties, which of the following statements is correct?
- A. To be effective a condition must be expressed in the contract
- B. A breach of a condition entitles the party not in breach to claim damages only
- C. A warranty may be implied into a contract on the basis of a trade custom.
- D. A breach of a warranty entitles the party not in breach to cancel the contract
Correct Answer: A 🗳️
Which of the following best describes the consequences of being found to be unethical for an individual CIMA member?
- A. Loss of reputation, public trust and customers
- B. Loss of reputation, suppliers and customers
- C. Loss of reputation, credibility and Chartered Institute status.
- D. Loss of reputation, status and earning potential.
Correct Answer: D 🗳️
Which of the 'fundamental principles' of CIMA's Code of Ethics is defined as follows?
"A professional accountant should be straightforward and honest in all professional and business relationships"
- A. Integrity
- B. Professional behavior
- C. Objectivity
- D. Confidentiality
Correct Answer: A 🗳️
Which of the following statements is correct in relation to business organisations?
- A. In the event of a company limited by shares going into insolvent liquidation the shareholders become fully liable for the debts of the company
- B. Although a public company may offer its shares and securities to the general public it can only do so if it is listed on a stock exchange
- C. A general partnership and a private limited company can be formed without the need for any written documents
- D. A limited liability partnership is a separate legal entity distinct from the partners in a similar way to how a private company is a legal entity distinct from its shareholders and directors
Correct Answer: B 🗳️
After the Companies Act 2006, which of the following is correct in relation to a reduction of capital by a public company?
(i) If the reduction results in the company no longer having the authorized minimum capital for a public company, it may be necessary to re-register as a private company.
(ii) The Articles of Association may restrict the company's ability to reduce capital.
(iii) The reduction must be approved by the court.
- A. (i) and (ii) only
- B. (i) only
- C. (ii) and (iii) only
- D. (i), (ii) and (iii)
Correct Answer: D 🗳️
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