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CIMA BA4 Exam Syllabus Topics:

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

1. In relation to corporate governance, which of the following statements best describes the situation in the UK?

A) Some corporate governance is enforceable in law
B) There is little or no corporate governance
C) All corporate governance is enforceable in law
D) No corporate governance is enforceable in law

2. Which of the following is correct in relation to damages?
(i) The victim of a breach of contract may claim damages in respect of losses caused by the breach which were within the contemplation of the contract breaker.
(ii) As a general rule damages cannot be claimed for annoyance and inconvenience caused by the breach of contract.
(iii) Where there is a breach of contract, damages are available to the innocent party as of right.

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

3. Which of the following statements is true?

A) The IFAC Code of Ethics is based on the CIMA Code of Ethics
B) The CIMA Code of Ethics is compliance based while the IFAC Code of Ethics is principles based
C) The CIMA Code of Ethics is based on the IFAC Code of Ethics
D) The CIMA and IFAC codes take a very different approach

4. Which of the following is INCORRECT in relation to the United States of America (USA)?
(i) In the event of a conflict between state and federal legislation, state legislation is superior.
(ii) The USA has a federal system of government.
(iii) Legislation is enacted by Congress.

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

5. 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) Yes - lying is an ethical issue and casts doubt on the integrity of the individual
B) Maybe - depending on whether anyone finds out or not
C) Maybe - depending on whether the lack of an MBA would mean that she is not competent to do her job
D) No - everyone lies on their CV

Solutions: