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: Corporate Governance, Controls and Corporate Social Responsibility | 45% | - Internal controls and audit
|
| Topic 2: Business Ethics and Ethical Conflict | 30% | - Ethical principles and professional behaviour
|
| Topic 3: General Principles of Legal System, Contract and Employment Law | 15% | - Business law fundamentals
|
| Topic 4: Company Administration | 10% | - Corporate legal administration
|
CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
Which of the following statements is correct?
- A. A claim in respect of "wrongful trading" may only be brought by a creditor of the company against a director or shadow director of the company.
- B. A claim in respect of "wrongful trading" may only be brought by the liquidator against a shareholder, director or shadow director of the company.
- C. A claim in respect of "wrongful trading" may only be brought by the liquidator against a director or a shadow director of the company.
- D. A claim in respect of "wrongful trading" may only be brought by the shareholders against a director or shadow director of the company.
Which TWO of the following are true of the CIMA Code of Ethics?
- A. It establishes the fundamental principles of professional ethics for professional accountants
- B. It is a financial requirement of accountants
- C. It covers every possible dilemma that an accountant might face
- D. It is based on values rather than compliance
A business that has an internal ethical code is likely to experience which of the following benefits? Select ALL that apply.
- A. Reduced risk
- B. Improved reputation
- C. Competitive advantage
- D. Better communication with staff
- E. Consistency of conduct
AB Ltd contracted to deliver two desks and three filing cabinets to CD Ltd. On the day when delivery was due to take place AB Ltd did not have a vehicle with sufficient capacity to hold all the goods. As a result AB Ltd delivered the two desks only Which of the following is correct?
- A. The delivery of the desks amounts to substantial performance of the contract and CD Ltd is obliged to pay the contract price less an amount for the defects in performance
- B. CD Ltd is legally entitled to refuse delivery of the desks
- C. The contract between AB Ltd and CD Ltd is frustrated.
- D. The failure to deliver the filing cabinets is a breach of a warranty which entitles CD Ltd to claim damages
Which of the following statements is correct in relation to private and public companies limited by shares?
- A. A public company is required to have at least one director
- B. A private company must have a qualified company secretary
- C. A private and public company are required to hold an AGM
- D. A public company cannot commence trading until it has satisfied minimum share capital requirements
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