CIMA BA4 valid exam dumps : 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. While working as an accountant, you are asked to overlook certain irregularities in your company's accounts. This is likely to result in tensions described by which TWO of the following four options:

A) Professional and corporate values
B) Personal and corporate values
C) Personal and societal values
D) Professional and societal values

2. Which of the following is incorrect in relation to a reduction of capital by a private company?

A) The directors must make a solvency statement.
B) The company must pass a special resolution to authorize the reduction of capital.
C) The reduction may affect the company's creditors.
D) It is necessary for the company's Articles of Association to authorize a reduction of capital.

3. On 1st October X Ltd wrote to Y Ltd offering to sell a machine at a price of £5,000. The letter stated that Y Ltd must give X Ltd "notice in writing" of its acceptance of the offer by 8th October. Y Ltd posted its acceptance on 5th October and this reached X Ltd on 7th October. In the meantime X Ltd sent a letter to Y Ltd on 4th October revoking its offer, and this reached Y Ltd on 8th October.
Which of the following is correct?

A) X Ltd and Y Ltd contracted on 7th October.
B) There is no contract between X Ltd and Y Ltd because the offer was withdrawn on 4th October when the revocation was sent to Y Ltd.
C) There is no contract between X Ltd and Y Ltd because the offer was withdrawn on 8th October when the revocation was received by Y Ltd.
D) X Ltd and Y Ltd contracted on 5th October.

4. ABC Ltd has entered into a contract with DEF Ltd. The contract provides that breach a particular term entitles the innocent party to terminate the contract. What is the legal status of that term?

A) The term is a penalty clause.
B) The term is a condition.
C) The term is an in nominate term.
D) The term is a warranty.

5. Miss K is a newly qualified accountant working in a highly respected local accountancy firm headed by Mr R, who is a pillar of the community. One night, Miss K is at an out of town bar with friends, when she spots Mr R with Mrs E, a client of the firm. It is obvious they are having a secret affair. Is this an ethical issue?

A) No, what Mr R and Mrs E do in their own personal time is nobody else's business
B) Yes, as professional accountants, Miss K and Mr R should not be drinking alcohol
C) Yes, Mr R is involved in a potential conflict of interest by having an affair with a client
D) No, Miss K knows nothing about Mr R's private life, and may be mistaken about the affair

Solutions: