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CIMA BA4 Exam Syllabus Topics:

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

1. Which of the following is correct in relation to Section 14 of the Sale of Goods Act 1979 which implies a term into contracts for the sale of goods that the goods supplied will be of "satisfactory quality." (i) A breach of Section 14 enables the innocent buyer to cancel the contract and claim damages.
(ii) The parties to a contract for the sale of goods can choose to exclude Section 14.
(iii) Section 14 applies to contracts for the sale of new goods only and does not apply to sales of second- hand goods

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

2. How can a company help employees make the right decision when faced with a difficult situation?

A) Threaten them with disciplinary procedures
B) Give them a rule book
C) Have a strong rules-based culture
D) Offer guiding values and principles to underpin decision-making

3. Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?

A) The identification of an independent director as primary shareholder contact
B) The appointment of independent non-executive directors to the Board
C) The establishment of an audit committee
D) The separation of the roles of Director and Company Secretary

4. Which of the following statements refer to the remuneration committee? Select ALL that apply.

A) Makes decisions regarding the appointment of new directors.
B) Has a responsibility to monitor and review the effectiveness of the internal audit function.
C) Staffed exclusively by NEDs.
D) Makes decisions regarding the payment of directors.
E) Makes decisions regarding the appointment, re-appointment and removal of the external auditor.
F) Has a responsibility to attract, retain and motivate directors.

5. Which of the following has overall responsibility for enforcing the Health and Safety at Work Act 1974 and its related legislation?
i. The Health and Safety Commission
ii. The Health and Safety Executive
iii. The Health and Safety Inspectorate

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

Solutions: