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CIMA BA4 Exam Syllabus Topics:

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

Question 1

What has been the root of the majority of recent corporate scandals?

A. Misapplication or ignoring of human rights
B. Misapplication or ignoring of regulations
C. Misapplication or ignoring of accounting principles
D. Misapplication or ignoring of ethical values

Question 2

You are the manager of the finance function of a large engineering company According to IFAC's drivers of sustainable corporate success, which of the following would be a method by which you could improve the value of your department to the company?

A. Providing ethical leadership which focuses on minimizing environmental costs sustainably.
B. Providing ethical and strategic leadership which focuses on sustainable value creation.
C. Providing strategic leadership which sustains the maximization of short term value.
D. Providing sustainable ethical and strategic leadership which focuses on operating profit.

Question 3

Which of the following is incorrect in relation to a reduction of capital by a private company?

A. The reduction must be approved by the court.
B. It is not necessary for the company's Articles of Association to authorize a reduction of capital.
C. The directors must make a solvency statement.
D. The company must pass a special resolution to authorize the reduction of capital.

Question 4

The UK Corporate Governance Code is primarily directed at which type of business organization?

A. All limited liability business organizations
B. All private companies
C. All listed public companies
D. All business organizations

Question 5

Which of the following might a company experience if they were to implement internal control measures?
Select ALL that apply.

A. Reduced risk
B. A requirement to hire external auditors
C. More control
D. Less bureaucracy
E. Less paper work

Solutions: