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CIMA BA4 Exam Syllabus Topics:

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

1. You work for an oil company and your company is negotiating a contract with the government of another country. During the course of the negotiations, your managing director has run up a very substantial expenses bill for entertaining personnel from the country's government. This scenario suggests which TWO of the following ethical issues?

A) Data protection
B) Gifts and hospitality
C) Harassment
D) Bribery and corruption

2. 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) (iii).
B) (i) and (ii).
C) (i).
D) (i), (ii) and (iii).

3. Which of the following is incorrect?
(i) All contracts must be in writing.
(ii) A contract to sell land must be in writing.
(iii) A contract of employment must be in writing.

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

4. You work for a chain of restaurants. The head chef of your flagship restaurant raises questions about the inclusion of highly endangered species of fish on the restaurant's menu. Is it an ethical issue and why?

A) No - because business cannot be accountable for environmental issues
B) Yes - because it relates to the environmental issue of overfishing and depletion of fish stocks
C) Yes - because it could deny customers the choice of certain types of fish
D) No - because it will cost the restaurant money to source alternative produce

5. Which of the following is incorrect in relation to a reduction of capital by a private company?

A) The reduction must be approved by the court.
B) It is not necessary for the company's Articles of Association to authorize a reduction of capital.
C) The directors must make a solvency statement.
D) The company must pass a special resolution to authorize the reduction of capital.

Solutions: