Exam Code: BA4
Exam Name: Fundamentals of Ethics - Corporate Governance and Business Law
Certification Provider: CIMA
Corresponding Certification: CIMA Certification
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CIMA BA4 Exam Syllabus Topics:

SectionWeightObjectives
Business Ethics and Ethical Conflict30%- Ethical principles and professional behaviour
  • 1. Ethical dilemmas and conflict resolution
    • 2. Nature of ethics and values in accounting
      • 3. Professional independence, objectivity, and integrity
        Corporate Governance, Controls and Corporate Social Responsibility45%- Internal controls and audit
        • 1. Internal audit and external audit roles
          • 2. Risk management and control systems
            - Corporate governance framework
            • 1. Role of boards and directors
              • 2. OECD principles and governance codes
                - Corporate social responsibility
                • 1. CSR principles and sustainability reporting
                  Company Administration10%- Corporate legal administration
                  • 1. Company formation and structure
                    • 2. Corporate compliance and filings
                      General Principles of Legal System, Contract and Employment Law15%- Business law fundamentals
                      • 1. Employment law basics
                        • 2. Legal systems and sources of law
                          • 3. Contract formation and enforcement

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

                            Question 1

                            Acting diligently and in accordance with applicable technical and professional standards demonstrates the CIMA Code of Ethics fundamental principle of:

                            A. Objectivity
                            B. Responsibility
                            C. Respect
                            D. Professional competence and due care


                            Question 2

                            Which of the following would be regarded as an issue of shares for an improper purpose?
                            (i) An issue of shares to enable the directors to maintain control of the board.
                            (ii) An issue of shares to prevent a take-over bid.
                            (iii) An issue of shares in return for a non-cash consideration.

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


                            Question 3

                            Exe Ltd has five members. A has 90% of the shares and the other four members holds 2.5% of the shares each.
                            Which of the following is correct in relation to the calling of a general meeting on short notice?

                            A. Any three of the members may agree to the meeting being held on short notice
                            B. A and any two of the other members can agree to short notice
                            C. A alone may call the meeting on short notice
                            D. All five of the members must agree to short notice


                            Question 4

                            All policies for governance and social responsibility are ultimately rooted in an organization's:

                            A. The Government
                            B. Stakeholder relationships
                            C. The Board
                            D. Values and code of ethics


                            Question 5

                            Which of the following statements is incorrect?

                            A. A term may be implied into a contract on the basis of previous dealings between the parties.
                            B. A term may be implied into a contract on the basis of a trade custom.
                            C. A term will be implied into a contract wherever a court considers that it would be reasonable to do so.
                            D. A term may be implied into a contract by statute.


                            Solutions:

                            Question 1
                            Answer: D
                            Question 2
                            Answer: B
                            Question 3
                            Answer: B
                            Question 4
                            Answer: D
                            Question 5
                            Answer: C

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