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CIMA BA4 Exam Syllabus Topics:

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

1. In relation to the company secretary which of the following is correct?
(i) A public company must have a company secretary who is appropriately qualified (ii) A member of CIMA is qualified to act as a company secretary (iii) A private company may choose to have a company secretary and if so he/she must be appropriately qualified

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

2. Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?

A) The separation of the roles of Director and Company Secretary
B) The establishment of an audit committee
C) The appointment of independent non-executive directors to the Board
D) The identification of an independent director as primary shareholder contact

3. Who is entitled to sue under Section 994 of the Companies Act 2006, which empowers the court to grant a remedy in the event of the company's affairs being conducted in a manner "unfairly prejudicial to the interests of members..."?

A) The directors.
B) The shareholders as a whole.
C) The holders of at least 10% of the company's issued share capital.
D) Any member.

4. Which of the following statements is correct?

A) The question as to whether a worker is an employee or an independent contractor is one of fact and law.
B) The question as to whether a worker is an employee or an independent contractor is one of fact.
C) The question as to whether a worker is an employee or an independent contractor is one of law.
D) Whether a worker is an employee or an independent contractor depends entirely on the application of the control test.

5. Wye Ltd has ordered goods from ABC plc and the directors of Wye Ltd have guaranteed that Wye Ltd will pay the agreed sum within one month of the delivery of the goods.
Which of the following is correct?
(i) The contract is between Wye Ltd and ABC plc and the directors cannot be forced to pay the amount due in any circumstances.
(ii) A contract of guarantee is only enforceable if it is evidenced in writing.
(iii) The directors of Wye Ltd can be forced to honor the guarantee in the event of Wye Ltd not paying the amount due.

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

Solutions: