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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 is not an equitable remedy?

A) Rescission.
B) An injunction.
C) Specific performance.
D) Damages.

2. The directors of Zed Ltd issued a number of shares to their supporters, so that they would vote against a takeover bid by Exe Ltd.
Which of the following statements is INCORRECT?

A) If the shares were issued for a non-cash consideration, they were not subject to the statutory pre- emption rights of shareholders unless the articles of association so provided.
B) If the shares were issued for cash, they should have first been offered to the existing members in proportion to their current shareholding unless statutory pre-emption rights have been dis-applied.
C) The share issue is voidable and the original shareholders may ratify or cancel the issue by ordinary resolution.
D) If the directors had the legal authority to issue shares, the issue cannot be challenged by the shareholders.

3. Which of the following statements describes an example of a value for money audit?

A) Assessing the organisation's conformance with employment laws and regulations
B) Identifying and appraising weaknesses in the organisation's management team
C) Appraising the efficiency of one of the organisation's manufacturing processes
D) Analysing the reported financial performance of one of the organisation's branches

4. The body responsible for reviewing the accountancy profession worldwide is:

A) The International Federation of Accountants
B) The Financial Reporting Council
C) The Professional Oversight Board for Accountancy
D) The Financial Review Board

5. Demonstrating politeness and good manners towards others reflects the personal quality identified by the CIMA Code of Ethics as:

A) Creativity
B) Correctness
C) Courtesy
D) Cohesion

Solutions: