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:
| Section | Weight | Objectives |
|---|---|---|
| General Principles of the Legal System, Contract and Employment Law | 15% | - Employment law essentials - Contract law basics - Legal system fundamentals |
| Business Ethics and Ethical Conflict | 30% | - Ethical dilemmas and resolution - Professional ethics principles - Nature and importance of ethics |
| Company Administration | 10% | - Types of business organisation - Administration and management of companies |
| Corporate Governance, Controls and Corporate Social Responsibility | 45% | - Principles of corporate governance - Role of board and directors - Corporate social responsibility (CSR) - Internal controls and audit |
CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
Which ONE of the following is needed to solve ethical problems?
- A. Motivation to come to a decision as quickly as possible
- B. Motivation to help others
- C. Motivation to do what is right
- D. Motivation to do what is personally satisfying
Correct Answer: C 🗳️
Alan, Ben, Chris and Debbie are the only shareholders in ABCD Ltd, each holding 100 ordinary £1 shares.
Alan, who is the company's sole director, has recently learned that Ben, Chris and Debbie are intending to remove him as a director by passing an ordinary resolution. In consequence Alan sold his computer to the company in return for 1,000 ordinary £1 shares. The company was in need of a computer, which was of equal value to the 1,000 ordinary £1 shares.
Which of the following is correct?
- A. The share issue is invalid as the shares should have been offered to all the existing members first.
- B. The share issue is valid as long as Alan has the necessary authority to issue shares.
- C. The share issue is valid and Alan may use his 1,100 votes to defeat the resolution proposed by Ben, Chris and Debbie.
- D. The share issue is invalid as it has had the effect of manipulating the voting structure within the company.
Correct Answer: D 🗳️
Dilemmas arise when:
- A. You are asked to do something illegal
- B. There is a choice between what is good for me and what is prescribed professional standards
- C. There are two or more unpalatable choices
- D. You have no choice
Correct Answer: C 🗳️
Which of the following statements would amount to indirect discrimination in the workplace?
- A. Employee X is not considered for an excellence award because she raised a complaint about sexist comments on the factory floor
- B. Applicants for a motor mechanic s position are only considered if they are male
- C. Only women are promoted in the employee counseling department
- D. All employees in the sales departments are required to be smartly dressed and clean shaven
Correct Answer: D 🗳️
Which of the following most accurately describes the ratio decidendi?
- A. It is a statement of law by a court which is binding on all lower courts which are called upon to decide a similar case.
- B. It is a statement of law by a court which is binding on all higher courts which are called upon to decide a similar case.
- C. It is a statement of law by a court which is not binding on lower courts which are called upon to decide a similar case.
- D. It is a statement of law by a court which is binding on all future courts which are called upon to decide a similar case.
Correct Answer: A 🗳️
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