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CIMA BA4 Exam Syllabus Topics:

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

1. Which of the following will NOT as a general rule amount to consideration?

A) A promise to do an act in return for payment.
B) A promise to carry out an existing contract.
C) A promise to do more than was originally agreed.
D) A promise to pay the amount due at an early date.

2. Which ONE of the following is NOT a personal consequence of unethical behavior?

A) Loss of reputation
B) Loss of earnings
C) Loss of life
D) Loss of job

3. C sued D in the tort of negligence in order to recover compensation for injuries suffered as a result of D breaking his duty of care to C.
For what injuries can C claim compensation?

A) All physical but not psychiatric injuries caused by D.
B) All injuries caused by D.
C) All reasonably foreseeable injuries caused by D.
D) All injuries which were a direct consequence of D's actions.

4. Which of the following is correct?
(i) A liquidated damages clause will be void if it amounts to a penalty clause.
(ii) A liquidated damages clause will apply where it is a genuine attempt to pre-estimate the loss caused by a breach of contract.
(iii) A liquidated damages clause is void if it is for an amount in excess of the actual loss caused by the breach of contract.

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

5. Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?

A) The identification of an independent director as primary shareholder contact
B) The separation of the roles of Chairman and Chief Executive
C) The appointment of executive directors to the Board
D) The establishment of an audit committee

Solutions: