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CIMA BA4 Exam Syllabus Topics:

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

Question 1

Which of the following is incorrect?

A. A special resolution is needed to dismiss a director if the Articles of Association provide that he is to be a director for life.
B. A director may be removed from office for any reason by an ordinary resolution.
C. The company must be given 28 days' notice of a proposed resolution to dismiss a director.
D. A director who is under threat of removal has the right to speak at the meeting, whether or not he is a member.

Question 2

Which of the following is entitled to initiate court action on behalf of a company?
(i) The board.
(ii) The majority shareholders.
(iii) All the shareholders.

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

Question 3

Which of the following terms can be defined as follows?
"How an organization manages its relationships in the wider community"

A. Social responsibility
B. Ethics
C. Corporate governance
D. Professional behavior

Question 4

Which of the following is an advantage of carrying on a business through the medium of a private company limited by shares?

A. The fact that business can be carried on with a minimum of two directors
B. The ability to keep the articles of association private
C. The ability to carry on business without holding an annual general meeting
D. The fact that business can be earned on with a minimum of one company secretary.

Question 5

Which of the following describes a principles-based approach to ethical standards in an organisation?
The objective behind the approach is to:

A. detect ethical non-compliance It focuses on the development of discipline and obedience and its standards are explicit
B. prevent ethical non-compliance It focuses on the development and application of individual judgment and standards are implicit
C. detect ethical non-compliance It motivates through fear and its standards are implicit
D. prevent ethical non-compliance It motivates through values and its standards are explicit

Solutions: