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CIMA BA4 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Business Ethics and Ethical Conflict30%- Nature and importance of ethics
- Ethical dilemmas and resolution
- Professional ethics principles
Topic 2: Company Administration10%- Administration and management of companies
- Types of business organisation
Topic 3: General Principles of the Legal System, Contract and Employment Law15%- Employment law essentials
- Contract law basics
- Legal system fundamentals
Topic 4: Corporate Governance, Controls and Corporate Social Responsibility45%- Corporate social responsibility (CSR)
- Principles of corporate governance
- Internal controls and audit
- Role of board and directors

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

Which of the following is incorrect in relation to the remedy of damages?

  • A. A victim of a breach of contract may be unable to recover damages if he has failed to mitigate his loss.
  • B. Damages cannot be claimed for a breach of a contract to provide personal services.
  • C. A penalty clause in a contract cannot be enforced.
  • D. Mitigation and remoteness of damage are irrelevant where a creditor is suing to recover an agreed debt.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Which of the following is a common law remedy?

  • A. Damages
  • B. Rescission
  • C. Specific performance
  • D. An injunction
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

After the Companies Act 2006, which of the following is correct in relation to a reduction of capital by a public company?
(i) If the reduction results in the company no longer having the authorized minimum capital for a public company, it may be necessary to re-register as a private company.
(ii) The Articles of Association may restrict the company's ability to reduce capital.
(iii) The reduction must be approved by the court.

  • A. (i) and (ii) only
  • B. (i), (ii) and (iii)
  • C. (ii) and (iii) only
  • D. (i) only
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Which of the following are the TWO main differences between the structure and function of company boards in Germany and the UK?

  • A. In Germany, employees are usually represented on the board, whereas in the UK they are not.
  • B. In Germany, boards are responsible for both management and governance, whereas in the UK they are responsible only for one or the other.
  • C. In Germany, boards often have a two-tier structure, wheras in the UK they are normally unitary.
  • D. In Germany, the board reports on corporate governance issues, whereas in the UK it does not.
Reveal Solution  Discussion  0

Correct Answer: A,C  🗳️

Wye Ltd has ordered goods from ABC plc and the directors of Wye Ltd have guaranteed that Wye Ltd will pay the agreed sum within one month of the delivery of the goods.
Which of the following is correct?
(i) The contract is between Wye Ltd and ABC plc and the directors cannot be forced to pay the amount due in any circumstances.
(ii) A contract of guarantee is only enforceable if it is evidenced in writing.
(iii) The directors of Wye Ltd can be forced to honor the guarantee in the event of Wye Ltd not paying the amount due.

  • A. (i) and (ii) only
  • B. (ii) only
  • C. (ii) and (iii) only
  • D. (i) only
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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