CIMA Fundamentals of Ethics - Corporate Governance and Business Law : BA4

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CIMA BA4 Exam Syllabus Topics:

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

1. You work for a company based in a capital city that leases office space to other organizations. Which of the following corporate issues is not related to ethics or social responsibility?

A) The energy efficiency of the buildings that you rent out
B) Whether your buildings provide a safe and secure environment for workers and visitors
C) Honest and transparent contracts with your customers
D) Having the prestige of renting out some of a capital city's most famous landmarks

2. In the event of a breach of contract, what is the purpose of damages?
(i) To punish the contract breaker.
(ii) To compensate the innocent party.
(iii) To ensure that the innocent party makes a profit.

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

3. A business has been registered under the name ABC Ltd. Which of the following types of business organization must this be?

A) A partnership.
B) Either a private limited company or a public limited company.
C) A private limited company.
D) A public limited company.

4. In Germany the two-tier board structure is used by many limited liability companies. A two-tier board structure is made up of a Management Board and which other organ?

A) A Supervisory Board
B) A Remuneration Committee
C) A Nominations Committee
D) A Quality Assurance Board

5. Which of the following is incorrect?

A) Subject to the company's Articles of Association, shareholder approval is not required to enable the company to borrow money.
B) A company's Articles cannot provide that the Articles are unalterable.
C) The Articles of Association may be altered by special resolution.
D) Subject to the company's Articles of Association, shareholder approval is not required to authorise the issue of shares direct to one person for a non-cash consideration.

Solutions: