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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 statements is correct?

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

2. Section 13 of the Sale of Goods Act 1979 implies a condition into contracts for the sale of goods that the goods supplied will correspond to the description. What remedies are available to the innocent buyer in the event of a breach of Section 13?

A) The buyer is entitled to specific performance of the contract
B) The buyer has the option of retaining the goods and claiming damages or repudiating the contract and claiming damages
C) The buyer is entitled to damages only
D) The contract between the buyer and the seller is automatically cancelled

3. Which ONE of the following was NOT a recommendation of the Cadbury Committee Report 1992?

A) Independent non-executive directors should be appointed to the boards of listed companies
B) The remuneration packages of executive directors should be agreed by a remuneration committee wholly or mainly comprising non-executive directors
C) An audit committee consisting of a majority of non-executive directors should be established to oversee the company's finances
D) Executive directors should not be offered service contracts for more than five years unless approved by the shareholders in a general meeting

4. Which of the following statements is correct?
(i) A term may be implied into a contract by statute.
(ii) A term may be implied into a contract on the ground that it is a trade custom.
(iii) A term may be implied into a contract by a court in order to give the agreement "business efficacy".

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

5. What can companies do in order to minimize the likelihood of future legislation?

A) All of the above
B) Maintain effective self regulation
C) Understand and address what the public expects of companies in terms of ethical behavior and social responsibilities
D) Insist on the highest standards of ethical behavior from their company and its employees

Solutions: