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CIMA BA4 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Company Administration | 10% | - Administration and management of companies - Types of business organisation |
| General Principles of the Legal System, Contract and Employment Law | 15% | - Employment law essentials - Legal system fundamentals - Contract law basics |
| Business Ethics and Ethical Conflict | 30% | - Professional ethics principles - Nature and importance of ethics - Ethical dilemmas and resolution |
| Corporate Governance, Controls and Corporate Social Responsibility | 45% | - Role of board and directors - Internal controls and audit - Corporate social responsibility (CSR) - Principles of corporate governance |
CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
Question 1
Immediately before being placed in creditors voluntary liquidation, Tom, the sole director of Bee Ltd, arranged for the company to make an early repayment of an unsecured loan made to Bee Ltd by his wife Anne. Which of the following is correct?
A. The company has acted in breach of fiduciary duty and can be made liable up to the amount of the loan.
B. The company has entered into a "transaction at an undervalue" with Anne, and the court may fine or imprison Tom.
C. The transaction amounts to "wrongful trading" and Tom may be held personally liable up to the amount of the loan.
D. The company has given a "preference" to Anne, and the court may make any order it thinks fit to restore the position to what it was before Anne was repaid.
Question 2
X, Y and Z are the only shareholders in XYZ Ltd each holding 1,000 ordinary £1 shares. X is the only director of the company. The articles of association of XYZ Ltd provide that "in the event of any proposal to dismiss a director by ordinary resolution, the votes of the director are to count 3 times." Which ONE of the following is CORRECT?
A. The company would be able to pass a special resolution removing the provision in the articles and then dismiss X by passing an ordinary resolution.
B. The clause in the articles cannot be used by X as it is not an ordinary membership right.
C. The provision in the articles is void as it effectively means that X is irremovable as a director of XYZ Ltd.
D. X will be able to rely on the provision in the articles and outvote any proposal to dismiss him as a director.
Question 3
A manufacturing company has a policy of only buying raw materials which are produced within a 100 kilometer radius of its factory. This is an example of what aspect of CSR?
A. Environmental impact reporting
B. Brand management
C. Supply chain management
D. Quality management
Question 4
Which of the following is NOT one of the 'seven principles of public life', as defined by the Committee of Standards in Public Life?
A. Leadership
B. Learning
C. Integrity
D. Objectivity
Question 5
Which of the following is NOT one of the fundamental principles of CIMA's Code of Ethics?
A. Courtesy
B. Integrity
C. Professional behavior
D. Objectivity
Solutions:
| Question 1 Answer: D | Question 2 Answer: D | Question 3 Answer: B | Question 4 Answer: B | Question 5 Answer: A |
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