CIMA BA4 - Fundamentals of Ethics - Corporate Governance and Business Law

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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 correct?
(i) The first directors are appointed upon the incorporation of the company.
(ii) A director is a person who occupies the position of director by whatever name called.
(iii) A shadow director is a person in accordance with whose directions or instructions the directors of the company are accustomed to act.

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

2. Which of the following would be paid last by a company which had been placed in insolvent liquidation?

A) Outstanding loan capital and interest due to the holder of an unsecured debenture.
B) Fees owed to the directors
C) Share capital invested by the shareholders.
D) Unpaid employees' wages

3. Which of the following is incorrect?

A) In order to register a company, promoters must include a Memorandum of Association in the documents submitted to the Register of Companies.
B) The directors of a newly registered company cannot also act as directors of another company.
C) A company cannot be registered with the same name as a company already on the register.
D) For a company with a share capital, the application for registration must contain a statement of capital and initial shareholdings.

4. Which of the following courses of action is NOT part of the process that the CIMA Code of Ethics expects of professional accountants in resolving an ethical conflict?

A) Consult with other appropriate persons within the firm or employing organization for help if the matter remains unresolved
B) Determine the appropriate course of action that is consistent with the fundamental principles identified
C) Proceed with the course of action that would do least damage to a professional accountant's career prospects
D) Evaluate the consequences of each possible course of action

5. Which of the following is NOT one of the fundamental principles of CIMA's Code of Ethics?

A) Integrity
B) Respect
C) Objectivity
D) Confidentiality

Solutions: