CIMA Fundamentals of Ethics - Corporate Governance and Business Law : BA4 exam dump

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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 the superior source of law?

A) A Regulation issued by the European Council of Ministers.
B) A Statutory Instrument.
C) A decision by the Supreme Court.
D) A provision in an Act of Parliament

2. A situation has arisen which will involve you participating in transactions which are legally correct but ethically unsound.
Which of the following is correct?
(i) It is not possible for a transaction to be both legal and ethically unsound.
(ii) As long as the transactions are legal you are acting properly in participating.
(iii) One of the purposes of ethical codes is to guide professionals as to how to behave even when the proposed transactions are legal.

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

3. Which of the following statements is correct in relation to the "maintenance of capital" principle?

A) A company cannot use its share capital, and may only return it to its members with the permission of the court.
B) In general, a company can use its share capital for any reason whatsoever, as long as it ensures that there is sufficient remaining to meet the company's debts.
C) A company cannot use its share capital which must be set aside as a fund for creditors.
D) In general, a company is not able to freely return its share capital to its members.

4. A business that has an internal ethical code is likely to experience which of the following benefits? Select ALL that apply.

A) Consistency of conduct
B) Reduced risk
C) Better communication with staff
D) Competitive advantage
E) Improved reputation

5. In the event of a conflict between European Law and French Law which will prevail?

A) European law
B) French private law
C) The French Code Civile
D) French public law

Solutions: