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 |
|---|---|---|
| Topic 1: Corporate Governance, Controls and Corporate Social Responsibility | 45% | - Corporate social responsibility
|
| Topic 2: Business Ethics and Ethical Conflict | 30% | - Ethical principles and professional behaviour
|
| Topic 3: Company Administration | 10% | - Corporate legal administration
|
| Topic 4: General Principles of Legal System, Contract and Employment Law | 15% | - Business law fundamentals
|
CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
You work for an oil company and your company is negotiating a contract with the government of another country. During the course of the negotiations, your managing director has run up a very substantial expenses bill for entertaining personnel from the country's government. This scenario suggests which TWO of the following ethical issues?
- A. Gifts and hospitality
- B. Harassment
- C. Bribery and corruption
- D. Data protection
Correct Answer: A,C 🗳️
Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?
- A. Professional competence and due care
- B. Professional conscience and due care
- C. Professional cooperation and due care
- D. Professional consideration and due care
Correct Answer: A 🗳️
X owns 51% of the shares in X Ltd. Y and Z are the only directors of X Ltd. Which ONE of the following is CORRECT?
- A. X can give directions to Y and Z by passing ordinary resolutions ordering them to comply with his wishes
- B. X can use his votes to amend the articles and impose new obligations on Y and Z
- C. X can force Y and Z to declare a dividend
- D. X can dismiss Y and Z for any reason by using his majority vote
Correct Answer: D 🗳️
Which of the following statements is correct?
(i) As a general rule the acceptance of an offer is only effective when it has been communicated to the offeror.
(ii) A person must know of an offer before he or she can accept it.
(iii) A request for further information has the effect of destroying the original offer.
- A. (ii) and (iii).
- B. (i) and (ii).
- C. (i), (ii) and (iii).
- D. (i) and (iii).
Correct Answer: B 🗳️
Company B wants to implement ethical control over its staff. It wants to do this by implementing a strong organisational culture.
Which of the following are ways in which the organisation could exercise control in regards to its organisational culture?
Select ALL that apply.
- A. Ensure the company's ethical expectations are thoroughly communicated.
- B. Ensure that the company's chairman and CEO lead by example.
- C. Introduce a statement of values which outlines what the organisation stands for.
- D. Only employ directors who have proven strong moral values.
- E. Ensure that disciplinary action is taken when the company's ethical code is broken.
- F. Ensure that the company's organisational systems encourage adherence to its ethics.
Correct Answer: A,B,C,F 🗳️
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