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CIMA BA4 Exam Syllabus Topics:

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

1. On 1st October X Ltd wrote to Y Ltd offering to sell a machine at a price of £5,000. The letter stated that Y Ltd must give X Ltd "notice in writing" of its acceptance of the offer by 8th October. Y Ltd posted its acceptance on 5th October and this reached X Ltd on 7th October. In the meantime X Ltd sent a letter to Y Ltd on 4th October revoking its offer, and this reached Y Ltd on 8th October.
Which of the following is correct?

A) X Ltd and Y Ltd contracted on 7th October.
B) X Ltd and Y Ltd contracted on 5th October.
C) There is no contract between X Ltd and Y Ltd because the offer was withdrawn on 8th October when the revocation was received by Y Ltd.
D) There is no contract between X Ltd and Y Ltd because the offer was withdrawn on 4th October when the revocation was sent to Y Ltd.

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

A) The articles may be amended by the members passing a special resolution.
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) 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.
D) Any special resolution to alter the articles must be passed in good faith in the best interest of all the shareholders.

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

4. Which of the following is correct?
(i) A decision of the Supreme Court is binding on all lower courts which are called upon to decide a case based on similar material facts.
(ii) If there is a conflict between European Law and English law, European Law prevails.
(iii) Parliament may delegate authority to the government to make law.

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

5. When might an ethical dilemma occur?

A) All of the above
B) When the code of ethics does not specify what action to take
C) When the boundaries between right and wrong are unclear
D) When an individual is under pressure to do something that does not feel right

Solutions: