CIMA BA4 - Fundamentals of Ethics - Corporate Governance and Business Law

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CIMA BA4 Exam Syllabus Topics:

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

1. Shiny Steel is a steel manufacturer keen on increasing short-term shareholder interest. It has a number of factories in the country, which all have to abide by the new legislation that states carbon emissions shouldn't exceed a particular limit.
Baring this in mind, which of the following might give Shiny Steel the best chance of increasing short- term shareholder interest?

A) Invest in new machinery that reduces emissions close to zero.
B) Sign up to a campaign dedicated to protecting the rainforests.
C) Ensure that its carbon emission fall just below the legal limit.
D) Increase production, even if carbon emissions exceed the legal limit.

2. Which of the following is incorrect in relation to the criminal law?

A) A crime is regarded as an offence against society as a whole and the state will prosecute the offender on its behalf.
B) All criminal cases commence in the Magistrates' Court.
C) The purpose of the criminal law is to regulate behavior within society by punishment and deterrence.
D) A breach of contract is a criminal offence.

3. Which of the following is not a legal person?

A) A firm of accountants.
B) A public limited company.
C) A sole trader.
D) A private limited company.

4. Which of the following is NOT one of the 'seven principles of public life', as defined by the Committee of Standards in Public Life?

A) Confidence
B) Integrity
C) Openness
D) Objectivity

5. T contracted to buy a washing machine from AB (Retailers) Ltd for his personal use at home. The contract contained a term excluding liability for any breach of the condition implied by the Sale of Goods Act 1979 that the goods should be of "satisfactory quality". The contract was on AB (Retailers) Ltd's standard form contract.
Which of the following is correct?
(i) Conditions implied by the Sale of Goods Act 1979 cannot be excluded in any sale.
(ii) This is a consumer sale and the clause excluding liability is void.
(iii) This is a non-consumer sale and the clause is void unless reasonable.

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

Solutions: