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CIMA BA4 Exam Syllabus Topics:

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

1. Which of the following statements correctly defines the ethics of utilitarianism?

A) The guiding principle of conduct should be the greatest happiness for the greatest number
B) The guiding principle of conduct should be to do no harm
C) The guiding principle of conduct should be the consideration of the duty to respect other rational beings
D) The guiding principle of conduct should be to act with justice and courage

2. Which of the following is INCORRECT in relation to an alteration of a company's articles of association?

A) Any special resolution to alter the articles must be passed in good faith in the best interest of all the shareholders.
B) Any special resolution to alter a company's articles of association may be passed by the members in a general meeting or by a written resolution.
C) The articles may be amended by the members passing a special resolution.
D) As long as the resolution to alter the articles is approved by 75% of the members of the company, it may require members to purchase additional shares.

3. S is management accountant for a small construction company. The company's financial year is due to end in a few weeks. The company has a number of large construction projects, one of which is behind schedule. One of the directors of the company has asked S to raise an invoice for a progress payment that is due on completion of the next phase of the contract. S knows that this phase will not be complete until after the year end, but the director says that the client needs the invoice now, to allow them to process it in time for payment when the phase is complete.
Which THREE of the following would it be appropriate for S to do?

A) Ask for advice from the company's external auditors
B) Challenge the request
C) Do as requested
D) Ask for confirmation in writing from the director
E) Bring the matter to the attention of the managing director
F) Refuse

4. According to the CIMA Code of Ethics:

A) Good ethical behavior may be above that required by the law
B) Good professional behavior may be above that required by ethics
C) Good legal behavior may be above that required by ethics
D) Good ethical behavior may be above that required by professional bodies

5. Which of the following statements is incorrect?

A) A term may be implied into a contract by statute.
B) A term may be implied into a contract on the basis of a trade custom.
C) A term will be implied into a contract wherever a court considers that it would be reasonable to do so.
D) A term may be implied into a contract on the basis of previous dealings between the parties.

Solutions: