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CIMA BA4 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: General Principles of the Legal System, Contract and Employment Law | 15% | - Legal system fundamentals - Contract law basics - Employment law essentials |
| Topic 2: Business Ethics and Ethical Conflict | 30% | - Nature and importance of ethics - Ethical dilemmas and resolution - Professional ethics principles |
| Topic 3: Company Administration | 10% | - Types of business organisation - Administration and management of companies |
| Topic 4: Corporate Governance, Controls and Corporate Social Responsibility | 45% | - Internal controls and audit - Role of board and directors - Principles of corporate governance - Corporate social responsibility (CSR) |
CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
Which of the following is the responsibility of the Chairman, according to the UK Corporate Governance Code?
- A. Authorizing major investments
- B. Carrying out the policies of the Board
- C. Setting the agenda for Board meetings
- D. Operational control
Correct Answer: C 🗳️
Which of the following are guilty of skimming? Select ALL that apply.
- A. Phil - An owner of a large business who often understates his company's profits by huge amounts in order to pay significantly less tax.
- B. Simon - An owner of a medium-sized business who sometimes understates his company's profits by a small amount in order to pay less tax.
- C. Gina - A senior manager at an investment firm who often redirects company funds to a fake account that she's created.
- D. Barry - An accountant for a large law firm who sometimes redirects incoming company funds to his own private account.
Correct Answer: D 🗳️
Lotl is a well-known supermarket chain that has recently come under fire for not encouraging diversity within the organisation.
Because of this, it has been making efforts to make the business more diverse.
Which of the following are ways Lotl might do this?
Select ALL that apply.
- A. Import and sell food from all over the world.
- B. Ensure that their in-store signs are written in at least five different languages.
- C. Ensure that the company has an even split of male and female employees at all levels.
- D. Ensure that it offers equal opportunities to both able-bodied and disabled people.
- E. Encourage people from all backgrounds and cultures to apply for vacancies.
Correct Answer: C,D,E 🗳️
According to CIMA, which of the following are ways in which corporate governance reporting could be improved?
Select ALL that apply.
- A. Ensure that compliance reporting is separate from governance reporting.
- B. Ensure company boards use their AGM to communicate with investors and encourage their participation.
- C. Widen the remit of the governance report.
- D. Make better use of the Chairman's message.
- E. Ensure that there is a dialogue between the business and its shareholders.
Correct Answer: A,C,D 🗳️
R and P are the only shareholders in RP Ltd, each holding 100 ordinary £1 shares. They have both paid half the nominal value of the shares. The company has been placed in creditors' voluntary liquidation on the ground that it is unable to pay its debts.
Which of the following is correct?
- A. Rebecca and Paul must each pay 50% of the company's debts.
- B. As the liability of R and P is limited they are not obliged to pay anything towards the company's debts.
- C. As it is a limited company, RP Ltd is not obliged to pay its debts.
- D. Rebecca and Paul are each obliged to pay the other half of the nominal value of their shares, and no more.
Correct Answer: D 🗳️
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