Exam Name: Fundamentals of Ethics - Corporate Governance and Business Law
Certification Provider: CIMA
Corresponding Certification: CIMA Certification
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CIMA BA4 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Corporate Governance, Controls and Corporate Social Responsibility | 45% | - Internal controls and audit - Corporate social responsibility (CSR) - Role of board and directors - Principles of corporate governance |
| General Principles of the Legal System, Contract and Employment Law | 15% | - Contract law basics - Legal system fundamentals - Employment law essentials |
| Company Administration | 10% | - Types of business organisation - Administration and management of companies |
| Business Ethics and Ethical Conflict | 30% | - Professional ethics principles - Nature and importance of ethics - Ethical dilemmas and resolution |
CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
Which THREE of the following are characteristics of Limited Liability Partnerships ("LLPs")?
- A. LLPs are usually created by formal registration under statute
- B. LLPs can hold property in their own name
- C. LLPs have no perpetual succession
- D. LLPs can enter into contracts in their own name
- E. An LLPs partners are jointly and severally liable for the debts of the LLP
Correct Answer: A,B,D 🗳️
Which of the following is CORRECT?
(i) A company limited by shares is a legal person separate and distinct from those who own and manage the company (ii) If the company structure is used as a mere facade for fraudulent purposes the company but not the directors or shareholders can be held liable (iii) If the company has carried on business despite the fact that insolvency appeared inevitable the directors may be personally liable for the debts contracted.
- A. (i) and (ii) only
- B. (i) and (iii) only
- C. (i) only
- D. (ii) and (iii) only
Correct Answer: B 🗳️
A advertised her motor car for sale in a local newspaper at a price of £5,000.
Which of the following is correct?
- A. If B telephones A and asks if he can pay by installments, his call would amount to a counter offer.
- B. The advertisement constitutes an offer which may be accepted by anyone who can pay the price.
- C. If C telephones A and offers £4,500, she has made a counter offer.
- D. The advertisement is an invitation to treat.
Correct Answer: D 🗳️
Which THREE of the following are disadvantages of rules-based approaches to ethical standards?
Rules-based approaches:
- A. are subject to precise definitions of wording and hence become contentious
- B. are inconsistently applied due to the need for judgment.
- C. are inflexible and expensive
- D. require objective enforcement by an independent party.
- E. motivate compliance through value and judgment
- F. have subjective standards which may cause confusion.
Correct Answer: A,C,F 🗳️
Which of the following will NOT as a general rule amount to consideration?
- A. A promise to do an act in return for payment.
- B. A promise to do more than was originally agreed.
- C. A promise to carry out an existing contract.
- D. A promise to pay the amount due at an early date.
Correct Answer: C 🗳️
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