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CIMA BA4 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Company Administration10%- Company financing and capital
- Formation and constitution of companies
- Types of business organizations
- Corporate insolvency and administration
Topic 2: Corporate Governance, Controls and Corporate Social Responsibility45%- Principles and frameworks of corporate governance
- External audit and assurance
- Corporate social responsibility and sustainability
- Internal control and risk management
- Roles and responsibilities of directors and officers
Topic 3: Business Ethics and Ethical Conflict30%- CIMA Code of Ethics and professional values
- Ethics vs law and regulation
- Identification and resolution of ethical dilemmas
- Concepts of ethics and business ethics
Topic 4: General Principles of the Legal System, Contract and Employment Law15%- Essential elements of a valid contract
- Structure and sources of law
- Employment law, rights and obligations
- Terms, breach and remedies of contract

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

In a situation where a professional accountant needs to choose in whose interest he or she is to behave and act, which of the following interests should he or she put first?

  • A. Public interest
  • B. Employer's interest
  • C. Client's interest
  • D. CIMA's interest
Answer: A

Which of the following is incorrect in relation to a company registered after the Companies Act 2006 was fully in force?

  • A. If the company has restrictions on its objects they may be amended by special resolution.
  • B. The company may choose to restrict its objects by including provisions to that effect in its Articles of Association.
  • C. The company will not be able to place any restrictions on its objects clause.
  • D. The company is to be treated as if it has unlimited objects.
Answer: C

Which of the following is NOT a 'financial stakeholder' of an organization?

  • A. Competitor
  • B. Government
  • C. Customer
  • D. Employee
Answer: A

A Ltd contracted to deliver a quantity of goods to B Ltd for £5,000. The goods were delivered and A Ltd submitted an invoice to B Ltd for the amount due which contained a number of new terms. Which of the following is incorrect?

  • A. B Ltd is only bound by the terms if it was given notice of them at or before the time of the contract.
  • B. If B Ltd is unaware of the terms, it can only be bound by them if it agrees to be so.
  • C. B Ltd is bound by the terms if there is a sufficient course of dealings between A Ltd and B Ltd so that B Ltd is assumed to know of the terms.
  • D. The invoice is a contractual document and B Ltd is bound by the terms on the invoice.
Answer: D

In relation to the law of misrepresentation, which of the following statements is incorrect?

  • A. Damages are available for innocent misrepresentation under the Misrepresentation Act.
  • B. A victim of fraudulent misrepresentation may seek rescission and damages.
  • C. A false statement of fact may give rise to remedies in both contract and tort.
  • D. Misrepresentation renders a contract voidable.
Answer: A

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