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CIMA BA4 Exam Syllabus Topics:

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

1. Working late one evening, you see a colleague copying information on to series of CD Roms. He tells you that software is too expensive for him to afford for his home computer but that he needs the software for his own personal use and in case he might take work home at some point. Is this an ethical issue and why?

A) Maybe - depending on whether his income is really insufficient to cover the cost of software purchase
B) No - one additional copy of the software makes no difference to the manufacturer, so this is not an ethical issue
C) Yes - unauthorized reproduction would be regarded by the manufacturer as software piracy
D) Maybe - depending on whether he uses the software for personal or business use

2. Which of the following is the superior source of law?

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

3. Which of the following statements are correct in relation to a misrepresentation?
1. A misrepresentation is a false statement of fact or law but not a mere expression of opinion by someone having no expertise in the subject matter of the contract
2. A misrepresentation renders a contract voidable
3. As a general rule silence can amount to a misrepresentation.

A) 2 only
B) 1 only
C) 1 and 2 only
D) 2 and 3 only

4. Which of the following are fundamental characteristics of useful information? Select ALL that apply.

A) Relevance
B) Comparability
C) Understandability
D) Faithful representation
E) Verifiability
F) Timeliness

5. Which of the following would be paid last by a company which had been placed in insolvent liquidation?

A) Fees owed to the directors
B) Outstanding loan capital and interest due to the holder of an unsecured debenture.
C) Share capital invested by the shareholders.
D) Unpaid employees' wages

Solutions: