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CIMA BA4 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: General Principles of the Legal System, Contract and Employment Law | 15% | - Structure and sources of law - Terms, breach and remedies of contract - Employment law, rights and obligations - Essential elements of a valid contract |
| Topic 2: Business Ethics and Ethical Conflict | 30% | - 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 3: Company Administration | 10% | - Formation and constitution of companies - Company financing and capital - Corporate insolvency and administration - Types of business organizations |
| Topic 4: Corporate Governance, Controls and Corporate Social Responsibility | 45% | - External audit and assurance - Internal control and risk management - Corporate social responsibility and sustainability - Principles and frameworks of corporate governance - Roles and responsibilities of directors and officers |
CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
1. ABC Ltd has resolved to purchase the business of ST Ltd for £500,000. ABC Ltd is to pay ST Ltd for the business by issuing ordinary £1 shares rather than cash. As the market value of ABC Ltd's shares is £5 per share, ABC Ltd is to issue to ST Ltd 100,000 ordinary £1 shares. Which of the following is incorrect?
A) The issue is lawful as ABC Ltd may issue its shares for a non-cash consideration.
B) The issue is only lawful if ABC Ltd arranges to have the business valued by the company's auditor.
C) The issue is lawful because ABC Ltd does not need to first offer the new shares to its existing members.
D) The issue is only lawful if the directors have the necessary authority to issue the shares.
2. Which of the following is INCORRECT?
A) A company secretary of a public company must be appropriately qualified
B) A company secretary may be dismissed by the board
C) A company secretary is an officer and not an employee of the company
D) A person may be appointed company secretary for life
3. Which of the following does not apply to a private company which is about to declare a dividend?
A) The company must take account of accumulated realized losses.
B) There must be profits available for distribution as a dividend.
C) The company's net assets must equal the total of called up share capital plus un-distributable reserves.
D) The company must have accumulated realized profits.
4. Which of the following statements is correct?
A) The Articles of Association of a private company limited by shares may be altered by ordinary resolution.
B) The Articles of Association of a private company limited by shares may be altered by a special resolution.
C) The Articles of Association of a private company limited by shares may be altered by a board resolution.
D) The Articles of Association of a private company limited by shares may be altered by a written ordinary resolution.
5. What, according to CarlyFiorina, CEO of Hewlett Packard, is the spirit of a code of ethics:
A) "It is doing the right thing because you have to"
B) "It is doing the right thing when no-one is watching"
C) "It is doing the right thing because everybody is watching"
D) "It is doing the right thing, because it's for the best"
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: B | Question # 5 Answer: B |
