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CIMA BA4 Exam Syllabus Topics:

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

1. J is at his company's reception desk when the promotions manager of a new restaurant and bar nearby hands him a number of vouchers for cheap meals and drinks. At the promotion manager's request, J agrees to share out the vouchers among his company's employees. J does not earn much and is tempted to keep the vouchers for himself and his friends. Is this an ethical issue and why?

A) Yes - promotional offers of this sort are unethical and J should throw away all of the vouchers
B) No - the vouchers were given to J, so he can do what he likes with them
C) Yes - the vouchers were given to J on the understanding that he would distribute them to other employees rather than keep them for himself
D) No - as long as J gives vouchers to other company employees who earn as little as he does

2. Which of the following is correct in relation to the UK Corporate Governance Code?
(i) The Code gives rise to a disclosure requirement
(ii) Breach of the Code gives rise to criminal penalties
(iii) Breach of the Code gives rise to civil liability

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

3. Self regulation is based upon:

A) Professional bodies
B) Compliance
C) Trust
D) Rules

4. Which of the following is incorrect in relation to a company registered after the Companies Act 2006 was fully in force?

A) The company is to be treated as if it has unlimited objects.
B) The company will not be able to place any restrictions on its objects clause.
C) The company may choose to restrict its objects by including provisions to that effect in its Articles of Association.
D) If the company has restrictions on its objects they may be amended by special resolution.

5. Which of the following is correct?
(i) The provisions of the Memorandum of Association do not form a contract between the members and the company.
(ii) The provisions of the Articles of Association form a contract between the members and the company.
(iii) One member may sue another directly on the provisions in the Articles of Association which contain ordinary membership rights.

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

Solutions: