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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 is correct in relation to business organisations?

A) 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
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) In the event of a company limited by shares going into insolvent liquidation the shareholders become fully liable for the debts of the company
D) A general partnership and a private limited company can be formed without the need for any written documents

2. Which of the following does the IFAC Code of Ethics establish?

A) Legal requirements for professional accountants
B) Standards of commitment for professional accountants
C) Judicial requirements for professional accountants
D) Standards of behavior for professional accountants

3. Which of the following statements is correct?
(i) The written statement of particulars of employment is the contract of employment and every employee with one month's service is entitled to receive a copy.
(ii) The written statement of particulars of employment is not the contract of employment.
(iii) The written statement of particulars of employment may be the best evidence of the terms of the contract and every employee with one month's service is entitled to receive a copy.

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

4. Which of the following is incorrect?

A) A ratio decidendi of the Court of Appeal is binding on the High Court.
B) A ratio decidendi of the Supreme Court is binding on the Court of Appeal.
C) A ratio decidendi of the Supreme Court is binding on the High Court.
D) The Supreme Court is bound by a previous House of Lords ratio decidendi.

5. Zed plc has appointed Wye and Co (accountants) as auditors of the company. If the audit is carried out negligently which of the following are entitled to claim against the auditors?

A) Zed plc, its directors and shareholders.
B) Zed plc, its directors and shareholders and any other person who has suffered loss as a result of the negligent audit.
C) Zed plc only
D) Zed plc and the directors of Zed plc.

Solutions: