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CIMA BA4 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| General Principles of the Legal System, Contract and Employment Law | 15% | - Terms, breach and remedies of contract - Structure and sources of law - Employment law, rights and obligations - Essential elements of a valid contract |
| Business Ethics and Ethical Conflict | 30% | - CIMA Code of Ethics and professional values - Ethics vs law and regulation - Identification and resolution of ethical dilemmas - Concepts of ethics and business ethics |
| Corporate Governance, Controls and Corporate Social Responsibility | 45% | - Roles and responsibilities of directors and officers - Principles and frameworks of corporate governance - Corporate social responsibility and sustainability - External audit and assurance - Internal control and risk management |
| Company Administration | 10% | - Company financing and capital - Corporate insolvency and administration - Types of business organizations - Formation and constitution of companies |
CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
R, S and T are the only shareholders in RST Ltd each holding 5,000 ordinary £1 shares. R is the only director of the company. The articles of association of RST contain the following provisions:
1. R is to be a director of RST Ltd for life.
2. In the event of any resolution to dismiss R by ordinary resolution his votes shall count three times.
Which of the following is CORRECT?
(i) Provision 1 is void as a director cannot be appointed for a period exceeding 3 years.
(ii) Provision 2 is valid and R may outvote any proposed resolution to dismiss him.
(iii) Provisions 1 and 2 are both unenforceable by R as they are not ordinary membership rights.
- A. (i) only
- B. (i) and (iii) only
- C. (iii) only
- D. (ii) only
Correct Answer: C 🗳️
The chief executive of a transnational corporation states on her curriculum vitae that she has an MBA which she does not in fact have. Is this an ethical issue and why?
- A. Maybe - depending on whether the lack of an MBA would mean that she is not competent to do her job
- B. No - everyone lies on their CV
- C. Maybe - depending on whether anyone finds out or not
- D. Yes - lying is an ethical issue and casts doubt on the integrity of the individual
Correct Answer: D 🗳️
Which of the following must be satisfied for an employee to claim wrongful dismissal?
(i) The employer terminated the contract without notice, and was not justified in doing so.
(ii) The employee must have at least 12 months' continuous employment.
(iii) The dismissal was not for reasons of conduct, capability, redundancy or some other substantial reason.
- A. (i).
- B. (iii).
- C. (i), (ii) and (iii).
- D. (i) and (ii).
Correct Answer: A 🗳️
Which of the following is INCORRECT in relation to the UK Corporate Governance Code?
- A. No director should be involved in deciding his or her own remuneration.
- B. The board should be made up of a majority of non-executive directors.
- C. All UK companies quoted on the London Stock Exchange have to include a statement of how the company has complied with the main principles set out in the Code.
- D. There should be a clear division of responsibilities between the Chairman and the Chief Executive.
Correct Answer: B 🗳️
Which of the following is correct?
i. In general a company can use its share capital for any reason whatsoever, as long as it ensures that there is sufficient remaining to meet the company's debts.
ii. A company must use its capital for lawful purposes.
iii. In general, a company cannot return its share capital to its members.
- A. (i) only
- B. (i) and (ii) only
- C. (ii) and (iii) only
- D. (ii) only
Correct Answer: C 🗳️
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