CIMA BA4 Valid Test : 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 presumed not to be intended to create legal relations?

A) A social arrangement.
B) A commercial transaction.
C) An agreement by Exe Ltd to make a gift to Wye Ltd.
D) A contract between father and son.

2. How might a company ensure that an audit is independent?

A) Have the auditor review or report on the performance of management
B) Conduct an internal audit.
C) Hire an external auditor.
D) Have the auditor investigate all possible wrongdoings, including fraud.

3. Company F is a new business that prides itself on being green and ethical. It uses renewable energy to run its factories, abides by all the rules and regulations and regularly donates money to sustainable development charities around the world, despite occasionally being unable to fully pay its workers.
Why is Company F in violation of Carroll's CSR pyramid?

A) It is not in violation of Carroll's pyramid.
B) Because it is not profitable.
C) Because using renewable energy to run factories generally isn't advised as it can be unreliable.
D) Because it should be donating to charities based in their own country.

4. ABC Ltd has entered into a contract with DEF Ltd. The contract provides that breach a particular term entitles the innocent party to terminate the contract. What is the legal status of that term?

A) The term is a condition.
B) The term is a penalty clause.
C) The term is a warranty.
D) The term is an in nominate term.

5. S is management accountant for a small retail company. S has discovered a possible fraud in the purchasing department. The manager of that department has told S that he is aware of the fraud and will 'deal with it'.
Which ONE of the following would it be appropriate for S to do?

A) Ask for advice from the company's external auditors
B) Advise a director of the company
C) Bring the matter to the attention of the police
D) Nothing
E) Ask for confirmation in writing from the manager

Solutions: